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Exam 17: MRP and ERP

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Question 21

Multiple Choice

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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: $\begin{array} { l c c } \text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \\\text { Deluxe Easter Basket } & 1 \text { week } & 10 \\\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \\\text { Carved Chocolate Eggs ( } 4 \text { per) } & 1 \text { week } & 50\end{array}$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs. When should an order for carved chocolate eggs be released?

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 6

F) All of the above
G) A) and B)

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Question 22

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One of the primary output reports of MRP concerns changes to planned orders.

A) True
B) False

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Question 23

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Comparing known and expected capacity requirements with projected capacity availability is the job of:

Net requirements equal gross requirements minus safety stock.

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

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases

Which statement concerning MRP II is false?

Lumpy demand for components results primarily from the periodic scheduling of batch production.

The multiplication process used by MRP to determine lower-level requirements is called:

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

ERP is now about enterprise applications:

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

_______ is choosing how many to order or make each time an order is planned.

Which of the following most closely describes dependent demand?

A net-change MRP system is one that is updated periodically but not less frequently than once a week.

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

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: $\begin{array} { l c c } \text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \\\text { Deluxe Easter Basket } & 1 \text { week } & 10 \\\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \\\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50\end{array}$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs. What is the net requirement for dark chocolate truffles to fill this order?

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.

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) master schedules (III) accurate holding and backordering costs (IV) accurate bills of materials

Scheduled receipts differ from planned receipts in that scheduled receipts: