Question 1

Which is true of a net-change system?

Accepted Answer

A)  It is a batch-type system which is updated periodically.
B)  It is usually run at the beginning of each month.
C)  The production plan is modified to reflect changes as they occur
D)  It is used to authorize the execution of planned orders.
E)  It indicates the amount and timing of future changes.F) B) and E)
G) A) and C)

Question 2

Low-level coding represents items less than $18 per unit.

Accepted Answer

A) True 
 B)False

Question 3

Refer to this product tree  If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

Accepted Answer

A)  8
B)  16
C)  136
D)  204
E)  272F) All of the above
G) A) and D)

Question 4

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot) , and quantities on hand

Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

Accepted Answer

A)  120
B)  200
C)  280
D)  160
E)  150F) C) and D)
G) A) and D)

Question 5

Refer to this product tree  If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?

Accepted Answer

A)  340
B)  350
C)  380
D)  400
E)  590F) A) and D)
G) All of the above

Question 6

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

Accepted Answer

A)  computer chips
B)  potato chips
C)  poker chips
D)  chocolate chip cookies
E)  wood chippersF) A) and B)
G) A) and C)

Question 7

Refer to this product tree  If 24 Ys are needed, and no on-hand inventory exists for any items, how many Rs will be needed?

Accepted Answer

A)  84
B)  154
C)  284
D)  310
E)  384F) A) and C)
G) A) and E)

Question 8

Backflushing takes place

Accepted Answer

A)  when inventory records need updating.
B)  after some bills of material have been found to be inaccurate.
C)  after production has been completed.
D)  when customer orders are being reconciled.
E)  when previous periods' planned releases are converted to scheduled receipts.F) A) and E)
G) B) and C) C

Question 9

Capacity requirements planning is an important feature in MRP.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following most closely describes net requirements for the current period?

Accepted Answer

A)  gross requirements for current period− projected on-hand inventory for current period
B)  gross requirements for current period − planned receipts for previous period
C)  gross requirements for current period − planned order releases for previous period + projected on-hand inventory for previous period
D)  gross requirements for current period − planned order releases for previous period
E)  gross requirements for current period − projected on-hand inventory for current period + planned order releases for current periodF) A) and C)
G) B) and E)

Question 11

Safety time is sometimes used in MRP rather than safety stock quantities.

Accepted Answer

A) True 
 B)False

Question 12

An effort to expand the scope of material 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 planning.F) A) and E)
G) A) and D)

Question 13

In MRP, under lot-for-lot ordering, planned-order receipts are

Accepted Answer

A)  identical to scheduled receipts.
B)  identical to net requirements.
C)  open orders (that is, ordered before the first time bucket, but not delivered yet) .
D)  gross requirements.
E)  available-to-promise inventory.F) A) and C)
G) C) and D)

Question 14

Which one of the following is not an input in an MRP system?

Accepted Answer

A)  planned-order schedules
B)  bill of materials
C)  master production schedule
D)  inventory records
E)  All are inputs.F) All of the above
G) B) and C)

Question 15

Scheduled receipts differ from planned receipts in that scheduled receipts

Accepted Answer

A)  have longer lead times.
B)  involve orders that have not yet been placed.
C)  have not been pegged with actual customer orders.
D)  involve orders that have already been placed.
E)  involve exceptions to order quantity policies.F) C) and E)
G) A) and D)

Question 16

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

Accepted Answer

A) True 
 B)False

Question 17

A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for

Accepted Answer

A)  computer-aided manufacturing.
B)  computer-integrated manufacturing.
C)  economic order quantity.
D)  material requirements planning.
E)  economic run size.F) A) and D)
G) B) and D)

Question 18

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the

Accepted Answer

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

Question 19

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Accepted Answer

A) True 
 B)False  True

Question 20

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

Exam 13: MRP and ERP

Which is true of a net-change system?

Correct Answer
verified

Low-level coding represents items less than $18 per unit.

Correct Answer
verified

Refer to this product tree If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

Correct Answer
verified

Correct Answer
verified

Refer to this product tree If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?

Correct Answer
verified

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

Correct Answer
verified

Refer to this product tree If 24 Ys are needed, and no on-hand inventory exists for any items, how many Rs will be needed?

Correct Answer
verified

Backflushing takes place

Correct Answer
verified
C

Capacity requirements planning is an important feature in MRP.

Correct Answer
verified

Which one of the following most closely describes net requirements for the current period?

Correct Answer
verified

Safety time is sometimes used in MRP rather than safety stock quantities.

Correct Answer
verified

An effort to expand the scope of material planning by involving other functional areas in the planning process has been

Correct Answer
verified

In MRP, under lot-for-lot ordering, planned-order receipts are

Correct Answer
verified

Which one of the following is not an input in an MRP system?

Correct Answer
verified

Scheduled receipts differ from planned receipts in that scheduled receipts

Correct Answer
verified

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

Correct Answer
verified

A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for

Correct Answer
verified

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the

Correct Answer
verified
A

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Correct Answer
verified
True

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

Correct Answer
verified

Exam 13: MRP and ERP

Which is true of a net-change system?

Correct AnswerverifiedShow Answer

Low-level coding represents items less than $18 per unit.

Correct AnswerverifiedShow Answer

Refer to this product tree If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to this product tree If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Refer to this product tree If 24 Ys are needed, and no on-hand inventory exists for any items, how many Rs will be needed?

Correct AnswerverifiedShow Answer

Backflushing takes place

Correct AnswerverifiedC

Capacity requirements planning is an important feature in MRP.

Correct AnswerverifiedShow Answer

Which one of the following most closely describes net requirements for the current period?

Correct AnswerverifiedShow Answer

Safety time is sometimes used in MRP rather than safety stock quantities.

Correct AnswerverifiedShow Answer

An effort to expand the scope of material planning by involving other functional areas in the planning process has been

Correct AnswerverifiedShow Answer

In MRP, under lot-for-lot ordering, planned-order receipts are

Correct AnswerverifiedShow Answer

Which one of the following is not an input in an MRP system?

Correct AnswerverifiedShow Answer

Scheduled receipts differ from planned receipts in that scheduled receipts

Correct AnswerverifiedShow Answer

A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

Correct AnswerverifiedShow Answer

A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for

Correct AnswerverifiedShow Answer

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the

Correct AnswerverifiedA

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

Correct AnswerverifiedTrue

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

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C

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A

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True

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