Chapter Quiz(See related pages)

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1Which of the following statements concerning MRP systems is false?

A)MRP is a computer-based inventory planning and control information system designed to handle production scheduling of dependent-demand inventories for batch systems.

B)MRP is designed to determine how much is needed and when the need occurs for items that experience dependent demand (components, subassemblies, parts, and raw materials).

C)A Type II MRP system includes a check of available capacity and a feedback loop to the master schedule if capacity is insufficient.

D)MRP systems are based upon a replenishment philosophy, which indicates that material should be ordered when stock runs low.

E)The ordering philosophy of MRP may result in "lumpy" demand for component parts.

2As defined by Joseph Orlicky, the three principal functions of MRP are:

A)Managing inventories, establishing priorities, and managing capacities

B)Managing inventories, establishing order priorities, and scheduling slack resources

C)Managing inventories, establishing order priorities, and job dispatching

D)Managing activity time/cost tradeoffs, establishing priorities, and managing capacities

E)Managing activity time/cost tradeoffs, establishing priorities, and scheduling slack resources

3Three primary inputs fed into the MRP computer program are:

A)Master production schedule (MPS), bills of material file, and capacity requirements plan

B)Capacity requirements plan, planned order schedule, and inventory status file

C)MPS, inventory records file, and bills of material file

D)MPS, capacity requirements plan, and inventory records file

E)MPS, planned order schedule, and inventory records file

4A Type II MRP System is also known as a _________________

A)Material Resource Production System

B)Manufacturing Requirement Production System

C)Manufacturing Resource Planning System

D)Master Resource Planning System

E)Master Requirement Production System

5Which one of the following statements is incorrect about MRP systems?

A)MRP systems are useful in managing dependent demand type of inventories.

B)MRP systems utilize requirements type of ordering philosophy while managing inventories.

C)MRP systems are best suited for managing lumpy demand patterns.

D)The ABC classification principle is used for managing inventories in MRP systems.

E)None of the above

6Correctly complete the following statement. A bill of materials __________.

A)Is a structured list of all the materials or parts needed to produce one unit of a finished product.

B)Is rarely revised once established.

C)May exist in multiple versions for different functional disciplines throughout an organization.

D)Will lead to sufficient MRP system performance as long as the "threshold degree" of accuracy of approximately 75 percent is met

E)Is used as an input for dispatching decisions on the shop floor

7In theory, safety stock should not be necessary within an MRP system due to demand certainty. In practice, however, some safety stock may be maintained. Which of the following statements about safety stock within an MRP system is false?

A)When maintained, safety stock is normally held for end items rather than lower-level items in the bill-of-material because end items experience uncertain independent demand.

B)When maintained, safety stock is normally held for end items rather than lower level items in the bill-of-material because at that level less of it is required for the same degree of protection against demand uncertainty.

C)Carrying safety stock may represent a common solution for variable production scrap rates.

D)Safety lead time may be a more cost-effective solution than safety stock for purchased materials that are subject to variable delivery times.

E)Safety capacity as an alternative to safety stock is widely applied in industry.

8Which of the following is not an element of a successful MRP system?

A)implementation planning

B)adequate customer support

C)available data

D)management support

E)user knowledge

9The master production schedule for two products, A and B, is shown below. To manufacture item A, two units of component C are required. To manufacture item B, four units of component C are required. The inventory balance for C is 10 units at the start of week 1. Using this information, determine the gross requirements for component C to start week 1.

A)20 units

B)15 units

C)38 units

D)28 units

E)48 units

10Using a lot-for-lot ordering strategy for the following item, what is amount of net requirements in week 3? (Note: use a lead time of one week, the gross requirements and scheduled receipts depicted below, and assume you begin with 100 units in inventory.)

A)40 units

B)115 units

C)50 units

D)155 units

E)75 units

11End item A requires three component parts: B, C and D. The bill of material indicates that for each completed A, one unit of B, 2 units of C, and 1 unit of D are required. Current inventory for the four items is as follows: There are 15 As, 40 Bs, 50 Cs and 15 Ds in stock. If the lead time for all items is one week and there are no scheduled receipts for any item, how many units of product A can be delivered to customers at the start of next week (week 2) if you realize now that the bill of materials for A is wrong. You now realize it takes 2 units of B to make 1 finished unit of A (not the 1 unit as previously thought)?

A)10 units

B)25 units

C)30 units

D)35 units

E)40 units

12Which one of the following is not an element of a MRP system?

A)Inventory Record

B)Shop Floor Control

C)Capacity Planning System

D)Master Scheduling

E)Sales and Operations Planning System

13The Type I MRP system considers the capacity availability and shop floor control while managing the inventory in a factory.

A)True

B)False

14MRP systems require almost no safety stock of components to be carried because of a predictable demand pattern.

A)True

B)False

15The master schedule, the capacity plan, and inventory records are used as inputs for the part explosion process.

A)True

B)False

16Capacity Planning Systems are also referred to as Manufacturing Execution Systems (MES).

A)True

B)False

17An ERP system could be used by all of the functional areas of a business.

A)True

B)False

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