Q&A Hero

Q: The __________ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product. A) bill of material B) master production schedule C) inventory records D) assembly time chart E) net requirements chart

Q: A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a(n) A) net requirements document B) resource requirements profile C) aggregate plan D) master production schedule E) Wagner-Whitin finite capacity document

Q: The following table is an example of a(n) Week 1 Week 2 Week 3 Week 4 Week 5 Clothes Washer 200 100 Clothes Dryer 300 100 100 100 Upright Freezer 200 500 A) aggregate plan B) load report C) master production schedule D) capacity plan E) inventory record

Q: In job shop (make-to-order) operations, the master production schedule is usually expressed in A) end items B) modules C) kits D) customer orders E) warehouse orders

Q: In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of A) end items B) modules C) kits D) customer orders E) warehouse orders

Q: Which portion of the master production schedule is normally fixed, frozen, or firm? A) the entire schedule B) only the aggregate schedule C) only the middle of the schedule D) only the near-term portion E) only the far-term portion

Q: The aggregate plan gets input or feedback from which of the following areas? A) engineering B) finance, marketing, and human resources C) the master production schedule D) procurement, production, and general management E) all of the above

Q: A master production schedule contains information about A) quantities and required delivery dates of all subassemblies B) quantities and required delivery dates of final products C) inventory on hand for each subassembly D) inventory on hand for each final product E) scheduled receipts for each final product

Q: The __________ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities. A) master production schedule B) load report C) inventory records D) assembly time chart E) bill of material

Q: A master production schedule specifies A) the raw materials required to complete the product B) what component is to be made, and when C) what product is to be made, and when D) the labor hours required for production E) the financial resources required for production

Q: Effective use of MRP and other dependent demand models does not require which of the following? A) master production schedule B) bill of materials C) inventory availability D) lead times E) cost of individual components

Q: Which of the following is not a key benefit of MRP? A) quality increases B) better response times to customer orders C) faster response to market changes D) improved utilization of facilities E) reduced inventory levels

Q: Dependent demand and independent demand items differ in that A) for any product, all components are dependent-demand items B) the need for independent-demand items is forecast C) the need for dependent-demand items is calculated D) All of the above are true. E) None of the above is true.

Q: The phrase "demand related to the demand for other products" describes A) a dependent variable B) dependent demand C) recursive demand D) regression analysis E) independent demand

Q: Demand for a given item is said to be dependent if A) it originates from the external customer B) there is a deep bill of material C) the finished products are mostly services (rather than goods) D) there is a clearly identifiable parent E) the item has several children

Q: Wheeled Coach insists all of the following tasks are key to successful MRP use except A) materials plan must meet both schedule requirements and facility capabilities B) plan must be executed as designed C) inventory investment must be minimized D) excellent record integrity must be maintained E) stringent quality control

Q: Which of the following statements regarding Wheeled Coach is false? A) Wheeled Coach has found competitive advantage through MRP. B) Wheeled Coach builds ambulances in a repetitive process. C) Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise. D) Wheeled Coach's MRP system maintains excellent record integrity. E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

Q: The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.

Q: Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Q: While ERP may provide a strategic advantage over competitors, it is so complex that many companies cannot adjust to it.

Q: DRP is a time-phased stock-replenishment plan for all levels of a distribution network.

Q: By convention, the top level in a bill of material is designated level 1.

Q: When safety stock is deemed absolutely necessary, the usual policy is to build it into the projected on-hand inventory of the MRP logic.

Q: Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.

Q: Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

Q: Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.

Q: MRP can be effective only if very accurate lot sizes are calculated in advance.

Q: The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique.

Q: The economic part period is a fraction of a time bucket.

Q: In general, the lot-for-lot approach should be used whenever economical.

Q: The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Q: If parts and subassemblies common to a variety of products are managed through the supermarket concept, formal order releases for such parts are not necessary.

Q: Finite capacity scheduling, unlike MRP, recognizes the capacity limitations of departments and machines when building schedules.

Q: MRP is an excellent tool for scheduling products with variable lead times.

Q: Time fences divide that segment of the MPS that can be revised from that section that is "frozen."

Q: In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

Q: Gross material requirements do not take into account the amount of inventory on hand.

Q: If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.

Q: If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G.

Q: The time-phased product structure, unlike the bill of material, adds the concept of lead times.

Q: The Aggregate Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times.

Q: Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts.

Q: "Phantom bills" are bills of material for subassemblies that do not exist in reality.

Q: A bill of material lists all components, ingredients, and materials needed to produce one unit of an end item.

Q: Lead times, inventory availability, and purchase orders outstanding are among the five things operations managers must know for effective use of MRP.

Q: The master production schedule is a forecast of demand for families of products.

Q: Since MRP is quite detailed in nature, it has no influence on the longer-range, less detailed aggregate planning.

Q: The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

Q: A dependent demand item is so called because its demand is dependent on customer preferences.

Q: Reduced inventory levels and faster response to market changes are both benefits of MRP.

Q: MRP is generally practiced on items with dependent demand.

Q: Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.

Q: A company is trying to implement MRP but is having trouble determining which order sizing method will minimize costs. Setup cost is $200 and holding cost is $2/period. If each period is 1 week, gross requirements are 270 units per 10 weeks, and there are 6 planned order releases for every 10 weeks, calculate the cost for lot-for-lot compared to EOQ for an entire year. Assume that EOQ and lot-for-lot are computed as though the usage will occur continually throughout the year.

Q: Four A washers, Five B washers, Two C bolts, and a D bolt are required to make one Grill parts kit. If 100 grill part kits are needed how many more washers will be consumed than bolts?

Q: A manufacturing company is trying to determine the cost of materials used to produce an A. If Fs cost $1 and Ds cost $2 how much does it cost to produce an A (in F and D materials only)?

Q: Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1. If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?

Q: Explode the following Bill of materials assuming 1 A is to be made. If there are 20 of every item except A in on-hand inventory how many As can be assembled?

Q: Jacquie Welkener, operations manager for ABC Technologies, must schedule work for the next five days. Each unit takes 30 minutes to process. Available capacity is 8 hours per day. The production order quantities are 12, 18, 20, 13, and 17 for Monday through Friday, respectively. What should be the production plan?

Q: Construct an indented bill of material for a common 3-ring view binder (the kind that lets you slip your own cover sheet into the front panel and spine). Assume the rings to be 1 inch diameter. Don't worry about other dimensions?pay attention to accounting for all of the parts.

Q: Construct a product structure tree for a movie purchased in DVD format. Assume that it contains a single DVD disk. Don't be concerned with artwork?you may use labeled boxes for your parts and assemblies.

Q: A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing? Week 1 2 3 4 Requirements 50 30 40 80 Other data for this scenario include: setup cost = $1000, inventory holding cost $1 per unit per week. There is no beginning inventory; there are no scheduled receipts. The usage pattern is expected to continue for the remainder of the year.

Q: A product has the following gross requirements. Which is cheaperue004lot-for-lot, part period balance, or EOQ lot sizing? Week 1 2 3 4 5 6 Requirements 50 80 90 50 30 60 Other data for this scenario include: setup cost = $250, inventory holding cost $2 per unit per week. There is no beginning inventory; there are no scheduled receipts. The usage pattern is expected to continue for the remainder of the year.

Q: Each X requires 2 of component Y and 1 of part W. Each Y requires 10 of Z. Each W requires 3 of Q and 2 of R. Lead times are X = 1 week, Y = 1 week, W = 2 weeks, R = 1 week, Z = 3 weeks, and Q = 3 weeks. a. Construct the time-phased product structure. b. Construct the bill of material.

Q: Each R requires 3 of component S and 3 of material A; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for material A is 1 week. The lead time for the procurement of T is 4 weeks. a. Construct the time-phased product structure. b. Construct the bill of material.

Q: Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule. Item Lead Time Quantity on Hand Scheduled receipts J 1 0 K 2 20 30 in week 2 L 2 0 M 1 20 10 in week 1

Q: The MPS calls for 50 units of Product A and 60 of B. There are currently 35 of Product B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. a. Calculate the net requirements for B. b. Calculate the gross requirements for C. c. Calculate the net requirements for C.

Q: The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available. a. Calculate the net requirements for A. b. Calculate the gross requirements for B. c. Calculate the net requirements for B.

Q: The MPS calls for 120 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand. a. Calculate the net requirements for M. b. Calculate the gross requirements for N. c. Calculate the net requirements for N.

Q: Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2 months. Month 1 2 3 4 5 6 7 Requirement 100 150 200 150 100 150 250

Q: Consider the following bill of material. Forty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts, explode the bill of material.

Q: Consider the following bill of material. Fifty units of Product A are needed. Assuming no on-hand inventory, explode the bill of material.

Q: Consider the following requirements for a certain product. Period 1 2 3 4 5 6 7 8 Gross requirements 0 200 200 500 0 400 0 400 Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a. Develop the lot-for-lot MRP table. b. Calculate the total relevant costs.

Q: A very simple product (A) consists of a base (B) and a casting (C). The base consists of a plate (P) and three fasteners (F). There are currently 30 castings and 100 bases on hand. Final assembly takes one week. The casting has a lead time of three weeks. All other parts have one week lead times. There are no scheduled receipts. All components are lot-for-lot. The MPS requires 80 units of product A in week 5 and 120 in week 8. Produce the MRP for the upcoming eight weeks. Produce a list of all planned order releases.

Q: The large parts of a playground A-frame (from which to hang a swing or glider) consist of a ridge pole, four legs, and two side braces. Each pair of legs fastens to the ridge with one fastener set. Each side brace requires two fastener sets for attachment to the legs. Each fastener set includes one zinc-plated bolt, one lock-washer, and one nut. There is one order outstanding, to make 80 frame kits. There are 200 legs in inventory. There are no other large items in inventory, and no scheduled receipts. Fasteners are available from the small parts area. a. Draw the product structure tree b. Calculate the net requirements to fulfill the outstanding order.

Q: Consider the following bill of material. Fifty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts, explode the bill of material.

Q: What are the disadvantages of enterprise resource planning (ERP)?

Q: What are the advantages of enterprise resource planning (ERP)?

Q: What does enterprise resource planning (ERP) allow an organization to do?

Q: Compare MRP in services to MRP in manufacturing. Utilize a simple example in your comparison.

Q: What is DRP?