Q&A Hero

Q: (p. 279) Which of the following is an input file necessary to run an MRP system? A. Bill of materials (BOM) file B. Quality management report C. Exception reports D. Planned-order schedules E. Purchasing contracts

Q: (p. 279) Which of the following is an input to the master production schedule? A. Bill of materials (BOM) file B. Inventory records file C. Exception reports D. Planned-order schedules E. None of the above

Q: (p. 279) Which of the following is an input to the master production schedule? A. Prototype products from product development B. Aggregate component schedule C. Peg reports D. Exception reports E. Forecasts of random demand from customers

Q: (p. 275) MRP systems seek to achieve which of the following? A. Minimize lot sizes B. Determine the number of dependent demand items needed C. Relieve capacity bottlenecks D. Provide a yardstick for future improvements E. Improve on JIT methods

Q: (p. 275) Which of the following is most closely related to the reason a firm might implement MRP? A. So they can order the right parts B. So they can order parts sufficient for immediate use C. So they can insure that parts to arrive prior to when they are needed D. To assure appropriate quality levels E. To keep process costs between the LCL and the UCL

Q: (p. 275) One of the main purposes of a MRP system is which of the following? A. Track inventory levels B. Create productive capacity C. Decrease layers of management D. Develop schedules specifying when each component should be ordered or produced. E. Upgrade manufacturing's professionalism

Q: (p. 275) Which of the following is one of the main purposes of a MRP system? A. Educate personnel in basic work rules B. To determine the amount of materials needed to produce each end item. C. Stimulate the work force D. Decrease labor requirements E. Increase inventory accuracy

Q: (p. 277) Which of the following is an input to the master production schedule (MPS)? A. Inventory records file B. The aggregate plan C. The bill of materials D. The exception report E. Planned order schedules

Q: (p. 280) A product tree can do which of the following? A. Help to compute component usage B. Reduce product scrap C. Reduce labor overtime D. Reduce regular time labor E. Locate raw material supplies

Q: (p. 276) Which of the following industry types will not benefit greatly from the application of MRP? A. Fabricate-to-order B. Assemble-to-stock C. Assemble-to-order D. Manufacture-to-order E. None of the above

Q: (p. 276) Which of the following industry types have high expected benefits from the application of MRP? A. Fabricate-to-order B. Hospitals C. Assemble-to-order D. Aircraft manufacturers E. Oil refineries

Q: (p. 276) Which of the following industry types have high expected benefits from the application of MRP? A. Fabricate-to-stock B. Fabricate-to-order C. Assemble-to-stock D. Continuous process E. Service and repair parts

Q: (p. 280) A BOM file is also called which of the following? A. Product tree B. Stocking plan C. Inventory usage record D. Production parts plan E. Time bucket schedule

Q: (p. 278) The customer grace period is a time-span having some specified level of opportunity for the customer to make changes.

Q: (p. 277) Time fences are periods of time having some specified level of opportunity for the customer to make changes.

Q: (p. 277) The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

Q: (p. 277) The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP.)

Q: (p. 274) When implemented correctly, MRP links all areas of the business.

Q: (p. 280) The three main inputs to an MRP system are the bill of materials, the master schedule and the inventory records file.

Q: (p. 287) Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Q: (p. 287) "Projected available balance" is a term referring to unsold finished goods inventory.

Q: (p. 292) The least unit cost method of lot-sizing adds ordering, stock-out and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Q: (p. 292) The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

Q: (p. 292) The least unit cost method (LUC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Q: (p. 291) The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

Q: (p. 290) The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost and carrying cost.

Q: (p. 290) The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost, carrying cost and cost of stock-outs.

Q: (p. 290) The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

Q: (p. 289) Lot-for-lot (L4L) is the most common lot sizing technique.

Q: (p. 289) The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

Q: (p. 289) A lot-for-lot (L4L) lot sizing technique does not take into account setup costs or capacity limitations.

Q: (p. 209) Generally, determining lot sizes in MRP systems is simple.

Q: (p. 283) In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

Q: (p. 284) Low level coding in MRP indicates the exact status of each item managed by the system in "real time."

Q: (p. 283) Net change MRP reflects the exact status of each item managed by the system in "real time."

Q: (p. 283) In a net change MRP system requirements and schedules are considered rigid and never updated.

Q: (p. 283) In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Q: (p. 283) Net change MRP systems are "activity" driven.

Q: (p. 282) The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.

Q: (p. 281) A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Q: (p. 281) A modular bill of materials includes items with fractional options.

Q: (p. 281) Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

Q: (p. 280) A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Q: (p. 280) An output of MRP is a bill of materials (BOM) file.

Q: (p. 280) An input to the material requirements planning (MRP) system is an inventory records file.

Q: (p. 280) An input to the material requirements planning (MRP) system is an exception report.

Q: (p. 276) A master production schedule is an input to a material requirements planning (MRP) system.

Q: (p. 275) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

Q: (p. 275) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy."

Q: (p. 275) MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

Q: (p. 275) MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

Q: (p. 275) MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Q: (p. 278) The master production schedule states the number of items to be produced during specific time periods.

Q: (p. 275) MRP is most valuable where a number of products are made in batches using the same productive equipment.

Q: (p. 275) MRP is based on dependent demand.

Q: (p. 280) Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.

Q: (p. 274) MRP stands for Material Requirements Planning.

Q: (p. 274) MRP stands for Manufacturing Requirements Planning.

Q: (p. 278) What are periods of time having some specified level of opportunity for the customer to make changes called? __________________________________________

Q: (p. 277) The time-phased plan specifying how many and when the firm plans to build each end item is called what? ___________________________________________

Q: (p. 281) Demand for an item located in level 3 of a product structure tree depends on demand for an item in the next higher level. What is that level called? __________________________

Q: (p. 280) What are the three main inputs to an MRP program?

Q: (p. 290) If annual demand is 1,000 units, annual holding cost is $0.50 per unit, and the cost per order is $10, what is the EOQ? ______________________________________

Q: (p. 283) What is the planned-order release using an MRP program if the gross requirement is 1,600 and the inventory on hand is 600? ______________________________

Q: (p. 281) What does it mean when a super bill of materials specifies half of a component part in an assembly? ______________________________________________________

Q: (p. 282) In MRP, how is demand information for a level 0 (zero) item derived? _________________________

Q: (p. 281) What is the name for a bill of materials that includes items with fractional options? __________________________

Q: (p. 275) What is the name for demand caused by the demand for a higher level item? __________________________

Q: (p. 292) Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost? A. Economic order quantity B. Lot-for-lot C. Least total cost D. Least unit cost E. Inventory item averaging

Q: (p. 291) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal? A. Kanban B. Just-in-time system C. MRP D. Least unit cost E. Least total cost

Q: (p. 291) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal? A. Economic Order Quantity B. Lot for lot C. Least total cost D. Least unit cost E. ABC analysis

Q: (p. 290) If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size? A. 2,000 B. 1,200 C. 1,000 D. 300 E. 200

Q: (p. 290) If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size? A. 350 B. 247 C. 23 D. 185 E. 78

Q: (p. 289) Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A. A consistent lag of supply behind demand B. Minimized carrying costs C. Minimized set-up costs D. A just in time management philosophy E. Minimized quality problems

Q: (p. 289) Which of the following is not a lot sizing technique used in MRP systems? A. Lot-for-lot (L4L) B. Economic order quantity (EOQ) C. Least total cost (LTC) D. Least unit cost (LUC) E. Warehouse loading factor (WLF)

Q: (p. 289) Which of the following can be used for lot sizing in an MRP system? A. Low-level coding B. Time bucket size C. Least unit cost D. Inventory record file E. Peg inventory

Q: (p. 279) Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600? A. 670 B. 600 C. 530 D. 70 E. None of the above

Q: (p. 279) Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200 and planned receipts are 800? A. 7,000 B. 4,200 C. 3,000 D. 2,000 E. 1,200

Q: (p. 283) Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500? A. 1,000 B. 950 C. 500 D. 400 E. 350

Q: (p. 246) Describe the aggregate sales and operations planning process.