Question 1

_______ is choosing how many to order or make.

Accepted Answer

A)  Quantity determination
B)  Package sizing
C)  Lot sizing
D)  Grouping
E)  AggregationF) A) and D)
G) B) and E)

Question 2

MRP works best if the inventory items have dependent demand.

Accepted Answer

A) True 
 B)False

Question 3

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

Accepted Answer

A) True 
 B)False

Question 4

The development and application of MRP depended upon two developments: (1)  the recognition of the difference between independent and dependent demand, and (2) :

Accepted Answer

A)  computers
B)  development of the EOQ model
C)  inventory control systems
D)  blanket purchase orders
E)  the internetF) A) and B)
G) B) and E)

Question 5

End item Alpha's product structure tree and inventory information are as follows:

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (A) If 50 units of Alpha are to be asse...

Question 6

ERP began in manufacturing organizations but has spread into service organizations.

Accepted Answer

A) True 
 B)False

Question 7

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Accepted Answer

A) True 
 B)False

Question 8

When should an order for Carved Chocolate Eggs be released?

Accepted Answer

A)  at the start of week 2
B)  at the start of week 3
C)  at the start of week 4
D)  at the start of week 5
E)  at the start of week 6F) C) and D)
G) A) and D)

Question 9

In MRP, the gross requirements of a given component part are calculated from:

Accepted Answer

A)  net requirements + amount on-hand.
B)  gross requirements of the immediate parent.
C)  planned orders of the end item.
D)  net requirements of end item.
E)  planned orders of the immediate parent.F) B) and C)
G) None of the above

Question 10

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following most closely describes dependent demand?

Accepted Answer

A)  demand generated by suppliers
B)  estimates of demand using regression analysis of independent variables
C)  derived demand
D)  demands placed on suppliers by their customers
E)  net material requirementsF) A) and E)
G) C) and D)

Question 12

Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.

Accepted Answer

A) True 
 B)False

Question 13

An MRP system whose records are updated continuously is referred to as a(n) :

Accepted Answer

A)  regenerative system
B)  batch-type system
C)  Plossl-Wright system
D)  net-change system
E)  gross-change systemF) A) and B)
G) C) and E)

Question 14

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Accepted Answer

A)  pegging
B)  safety stock
C)  increased order sizes
D)  safety time
E)  low-level codingF) A) and D)
G) All of the above

Question 15

Which of these products would be most likely to have dependent demand?

Accepted Answer

A)  refrigerators
B)  automobile engines
C)  televisions
D)  brownies
E)  automobilesF) A) and E)
G) C) and D)

Question 16

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

Accepted Answer

A) True 
 B)False

Question 17

Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.

Accepted Answer

A) True 
 B)False

Question 18

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

Accepted Answer

A)  master production schedule
B)  bill-of-materials
C)  inventory-records
D)  assembly-time chart
E)  net-requirements chartF) B) and E)
G) B) and C)

Question 19

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

Accepted Answer

A)  gross requirements
B)  net requirements
C)  economic order quantity
D)  gross requirements - net requirements
E)  net requirements - amount on-handF) B) and D)
G) A) and E)

Question 20

A recent effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:

Accepted Answer

A)  material requirements planning
B)  capacity requirements planning
C)  manufacturing resources planning
D)  Just-In-Time planning
E)  multifunctional relationships planningF) B) and D)
G) A) and E)

Exam 12: MRP and ERP

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

Correct AnswerverifiedShow Answer

Which of these products would be most likely to have dependent demand?

Correct AnswerverifiedShow Answer

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Correct AnswerverifiedShow Answer

A recent effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:

Correct AnswerverifiedShow Answer

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

Correct AnswerverifiedShow Answer

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2) :

Correct AnswerverifiedShow Answer

End item Alpha's product structure tree and inventory information are as follows:

Correct Answerverified (A) If 50 units of Alpha are to be asse...View AnswerShow Answer

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Correct AnswerverifiedShow Answer

MRP works best if the inventory items have dependent demand.

Correct AnswerverifiedShow Answer

_______ is choosing how many to order or make.

Correct AnswerverifiedShow Answer

Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

Correct AnswerverifiedShow Answer

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

Correct AnswerverifiedShow Answer

Which of the following most closely describes dependent demand?

Correct AnswerverifiedShow Answer

Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.

Correct AnswerverifiedShow Answer

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

Correct AnswerverifiedShow Answer

An MRP system whose records are updated continuously is referred to as a(n) :

Correct AnswerverifiedShow Answer

ERP began in manufacturing organizations but has spread into service organizations.

Correct AnswerverifiedShow Answer

In MRP, the gross requirements of a given component part are calculated from:

Correct AnswerverifiedShow Answer

Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.

Correct AnswerverifiedShow Answer

When should an order for Carved Chocolate Eggs be released?

Correct AnswerverifiedShow Answer

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(A) If 50 units of Alpha are to be asse...
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