Question 1

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Accepted Answer

A) True 
 B)False

Question 2

MRP systems seek to achieve which of the following?

Accepted Answer

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

Question 3

Which of the following is an input to the master production schedule?

Accepted Answer

A)  Prototype products from product development
B)  Aggregate component schedule
C)  Peg reports
D)  Exception reports
E)  Forecasts of random demand from customers

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Accepted Answer

A) True 
 B)False

Question 6

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following industry types has high expected benefits from the application of MRP?

Accepted Answer

A)  Fabricate-to-stock
B)  Fabricate-to-order
C)  Assemble-to-stock
D)  Continuous process
E)  Service and repair parts

Question 8

The master production schedule states the number of items to be produced during specific time periods.

Accepted Answer

A) True 
 B)False

Question 9

When implemented correctly, MRP links all areas of the business.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is most closely related to the reason a firm might implement MRP?

Accepted Answer

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

Question 12

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production, the two systems are incompatible and cannot work together.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an input to the master production schedule?

Accepted Answer

A)  Bill of materials (BOM)  file
B)  Inventory records file
C)  Exception reports
D)  Planned-order schedules
E)  None of the above

Question 14

Which of the following is an input file necessary to run an MRP system?

Accepted Answer

A)  Bill of materials (BOM)  file
B)  Quality management report
C)  Exception reports
D)  Planned-order schedules
E)  Purchasing contracts

Question 15

A BOM file is also called which of the following?

Accepted Answer

A)  Product structure tree
B)  Stocking plan
C)  Inventory usage record
D)  Production parts plan
E)  Time bucket schedule

Question 16

"Projected available balance" is a term referring to unsold finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 17

A modular bill of materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 18

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a production activity report generated by MRP?

Accepted Answer

A)  Exception report
B)  Planning report
C)  Performance control report
D)  Planned-order schedules
E)  Bill of materials report

Question 20

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Accepted Answer

A) True 
 B)False

Exam 18: Material Requirements Planning

"Projected available balance" is a term referring to unsold finished goods inventory.

Correct AnswerverifiedShow Answer

Which of the following is an input to the master production schedule?

Correct AnswerverifiedShow Answer

In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A modular bill of materials includes items with fractional options.

Correct AnswerverifiedShow Answer

The master production schedule states the number of items to be produced during specific time periods.

Correct AnswerverifiedShow Answer

A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

MRP systems seek to achieve which of the following?

Correct AnswerverifiedShow Answer

Which of the following is an input file necessary to run an MRP system?

Correct AnswerverifiedShow Answer

When implemented correctly, MRP links all areas of the business.

Correct AnswerverifiedShow Answer

Which of the following is most closely related to the reason a firm might implement MRP?

Correct AnswerverifiedShow Answer

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production, the two systems are incompatible and cannot work together.

Correct AnswerverifiedShow Answer

Which of the following is not a production activity report generated by MRP?

Correct AnswerverifiedShow Answer

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Correct AnswerverifiedShow Answer

A BOM file is also called which of the following?

Correct AnswerverifiedShow Answer

Which of the following industry types has high expected benefits from the application of MRP?

Correct AnswerverifiedShow Answer

A BOM file is often called a product structure file or product tree because it shows how a product is put together.

Correct AnswerverifiedShow Answer

Which of the following is an input to the master production schedule?

Correct AnswerverifiedShow Answer

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Correct AnswerverifiedShow Answer

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