Deck 6: MRP production system

Question 1

Fill out the following MRP record.The lot size is 150 units and the units on hand are 10 units.Multiple lots per order are possible

Answer 1

Question 2

Find the correct concepts to fit in to the following sentence.MRP's precise ________ order-generation capabilities make it possible to allow ___________ to be managed more effectively.

A) time-phased, lumpy inventory levels
B) period based, ordering costs
C) period based, lumpy inventory levels
D) cost effective, carrying costs

Answer 2

A

Question 3

Which of the following are not MRP Design Decisions?
1)time bucket size
2)delivery lead time
3)safety stock size
4)lot-sizing method

A) (1) and (4)
B) (2)
C) (3) and (4)
D) None of the above

Answer 3

B

Question 4

Complete the following MRP record.The lot size is a multiple of 60 with a holing cost of $300 per unit per period.What is the period with the largest holding cost for both average and end item values? (average/end)
$$\begin{array} { | c | c | c | c | c | c | c | c | c | } \hline { \begin{array} { c } \text { Lot } \\\text { size: } \\60 \mathrm { x }\\\end{array} } & { \text { Period } } \\ \hline& 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { GR } & 80 & 90 & 125 & 290 & 125 & 80 & 45 & 60 \\\hline \text { SR } & & 150 & & 60 & & & & \\\hline \text { PA } & & & & & & & & \\\hline \text { NR } & & & & & & & & \\\hline \text { POR } & & & & & & & & \\\hline\end{array}$$

A) Period 4/Period 2
B) Period 1/Period 2
C) Period 2/Period 2
D) Period 4/Period 7

Question 5

Explain why lumpy demands is created by a reorder point system and less with a MRP system

Question 6

List at least 2 inputs for the MRP process

Question 7

What is the difference between using average inventory values and end inventory values when it comes to calculating inventory costs?

Question 8

Complete the following MRP record using EOQ lot sizing technique.The holding cost is $3 per unit per period and the ordering cost is $500 per order.What is the ordering cost and holding costs using end inventory values? Assume that the lot size cannot exceed the EOQ size and back ordering is possible without any additional costs.(ordering cost/holding costs)
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline { \text { EOQ } } & { \text { Period } } \\\hline& 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { GR } & & 60 & 90 & 125 & 180 & 150 & 50 & 450 & 60 \\\hline \text { SR } & & & 150 & & 60 & & & & \\\hline \text { PA } & 10 & & & & & & & & \\\hline \text { NR } & & & & & & & & & \\\hline \text { POR } & & & & & & & & & \\\hline\end{array}$$

A) ($3,188/$3,440)
B) ($1,440/$2,000)
C) ($3,188/$2,000)
D) ($2,000/$1,440)

Question 9

Fill out the following MRP record.The lot size is 100 units and the units on hand are 100 units.The lead time between order placement and receipt is 2 periods.Multiple lots per order are possible.

Question 10

Fill out the following MRP record and calculate the inventory holding cost using end inventory values.The lot size is a multiple of 500 units and the holding cost is $20 per unit per period.

Question 11

Using all idealized assumptions regarding uncertainty, the lot-sizing procedure performance is based on the minimizing the total cost which include _______ cost and ________ costs subject to the __________ of each period.Find the correct concepts to fit in to the previous sentence.

A) Holding, obsolescence, available capacity
B) Safety stock, stock out, supply
C) carrying, stock out, demands
D) ordering, carrying, requirements

Question 12

Fill out the following MRP record.The lot size is 360 units and the units on hand are 500 units.The lead time between order placement and receipt is 2 periods.Now it is period 2 and the forecast for the period 2 and 3's demand has changed.For period 2, the demand is 190 while it is 125 for period 3.Provide a MRP record starting on period 2.

Question 13

Using the table below, calculate the holding inventory costs for all periods using end inventory values.The holding cost per period per unit is $5.
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \text { Periods } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \\\hline \text { Usage } & 1000 & 120 & 500 & 800 & 450 & 1280 & 800 & 500 & 280 & 180 \\\hline \begin{array} { c } \text { End } \\\text { Inventory }\end{array} & 0 & 300 & 70 & 530 & 70 & 0 & 30 & 0 & 30 & 0 \\\hline\end{array}$

A) $7,820
B) $19,925
C) $5,150
D) $10,535

Question 14

Explain what differentiates MRP from a reorder point system.

Question 15

Which of the following is correct about dependent demands?

A) It is managed separately from other end items
B) The plans for dependent demands are created using the concept of exploding
C) It is directly managed based on demand forecasts
D) Dependent demands are managed using an aggregate form of plan

Question 16

In the context of a MRP record, describe what a scheduled receipt is.

Question 17

Using the table below, calculate the holding inventory costs for all four periods using both average inventory and end inventory values.The holding cost per period per unit is $200.The sequence of cost is (average inventory, end inventory).
$$\begin{array} { | c | c | c | c | c | } \hline \text { Periods } & 1 & 2 & 3 & 4 \\\hline \text { Usage } & 100 & 120 & 50 & 80 \\\hline \text { End Inventory } & 10 & 30 & 70 & 30 \\\hline\end{array}$$

A) ($63,000, $78,500)
B) ($57,400, $48,000)
C) ($23,000, $28,000)
D) ($63,000, $28,000)

Question 18

Fill out the following MRP record.The lot size is 60 units and the units on hand are 100 units.The lead time between order placement and receipt is 1 periods.How would the MRP record change once the period 1 passed and it is period 2 currently? Provide a MRP record starting on period 2.

Question 19

Find the correct concepts to fit in to the following sentence.The MPS process handles ___________ while the MRP process handles ____________.

A) components, end items
B) minor assemblies, raw materials
C) independent demand items, dependent demand items
D) independent demand items, end items

Question 20

MRP is a computer-driven information system that translates end-item demand into raw materials, component parts, and subassemblies requirements.It works backward from the due date using _________, and other production information's.Which of the following information does not fit in the previous sentence?

A) lead times
B) item cost
C) bills of materials (BOM)
D) lot sizes

Question 21

The lot size is 60 units and the units on hand are 0 units.What is the total cost when using an average inventory value? The holding cost is $3 per unit per period and the ordering cost is $500 per order.No lead time exists.

Question 22

Fill out the following MRP record using a holding cost of $2 per unit per week and the ordering cost is $90 per order.No lead time exists.What is the cost difference between using EOQ and POQ Techniques? Which one is more effective?

Question 23

Fill out the following MRP record using lot for lot (LFL)lot sizing technique.What is the total cost using end inventory value? The holding cost is $3 per unit per period and the ordering cost is $500 per order.No lead time exists.

Question 24

Describe how MRP II is differentiated from the MRP system in the context of manufacturing control and planning.

Question 25

Product A uses 3 units of component B.The following is the MRP record for product A.Fill out the MRP record for component B.There are currently 100 product As and 700 component Bs on hand.For product A, the lot size is a multiple of 60 units while component B uses the lot for lot (LFL)technique.
Product A: 1 unit with a lead time of 1 period.
Component B: 3 unit with a lead time of 2 period.