Deck 15: Resource Planning

Question 1

Planned order releases at one level of a product structure generate gross requirements at the next level.

Answer 1

True

Question 2

The quantities reported on a master production schedule may reflect a combination of actual and forecasted demand.

Answer 2

True

Question 3

Material requirements planning (MRP) is more useful for simple products and less useful for complex products.

Answer 3

False

Question 4

The periodic order quantity (POQ) lot-sizing technique places orders every demand period.

Question 5

Discuss the basics of enterprise resource planning (ERP), including how it is used, key modules, and implementation issues.

Question 6

The optimal time required to manufacture a product is called its cumulative lead time.

Question 7

Material requirements planning (MRP) is useful for managing and scheduling discrete demand items.

Question 8

Lot sizing rules are used in MRP to determine work or purchase the order quantities.

Question 9

For information concerning on-hand quantities, lot sizes, and lead time, figures can be found in the master production schedule (MPS).

Question 10

One objective of material requirements planning (MRP) is to utilize all available capacity.

Question 11

Explain how software related to ERP is used, including the complexities of integrating multiple business software systems.

Question 12

A material requirements planning (MRP) system serves as both an inventory control system and as a production scheduling system.

Question 13

Material requirements planning (MRP) translates the master production schedule into requirements for components, subassemblies, and raw materials.

Question 14

A phantom bill of material is appropriate when a product consists of assemblies that are later combined to form a variety of final products.

Question 15

A forecast of dependent demand requirements is one of the major inputs into the MRP process.

Question 16

Very simple products typically do not require material requirements planning (MRP) to plan production or monitor inventory levels.

Question 17

The total length of time to purchase an item from a supplier is called its cumulative lead time.

Question 18

The quantities displayed on a master production schedule represent the production and not the actual demand.

Question 19

The master production schedule (MPS) is a major output of the MRP process.

Question 20

Modular bills of material are used to group small, loose parts together into a kit.

Question 21

Effective capacity is determined by multiplying the rated capacity by utilization and efficiency.

Question 22

Customer relationship management systems change the focus from managing products to managing customers.

Question 23

The product structure file lists all of the following except

A) the product's demand.
B) the items that go into the product.
C) a brief description of each item.
D) when and in what quantity each item is needed in the assembly process.

Question 24

Firms that successfully implement an MRP system no longer require cycle counting of inventory.

Question 25

A matrix is used to organize and display the information generated by the MRP process.

Question 26

Because the item master file is an input into the MRP process, it should be updated to reflect any revisions or changes.

Question 27

The customer relationship management (CRM) software plans and executes business processes that involve customer interactions.

Question 28

A load profile displays underloads and overloads.

Question 29

An enterprise resource planning (ERP) system shares information across the functional areas.

Question 30

Single-source ERP systems are often easier to integrate than systems built using the best-in-breed approach.

Question 31

Material requirements planning (MRP) is a useful for all of the following except

A) dependent demand items.
B) discrete demand items.
C) independent demand items.
D) erratic orders.

Question 32

The last stage in ERP implementation involves analyzing business processes.

Question 33

Capacity requirement planning (CRP) converts the material plan into labour and machine workloads.

Question 34

The application modules that comprise the ERP system are designed to support only customer relationship management processes.

Question 35

ERP application modules can be used alone or in combination.

Question 36

Enterprise resource planning integrates business processes at the expense of customer interaction.

Question 37

Capacity requirements planning (CRP) projects the load from a given material plan onto the capacity of a system.

Question 38

ERP systems are only concerned with production and marketing processes.

Question 39

All of the following options are inputs into the MRP process except the

A) master production schedule.
B) product structure file.
C) item master file.
D) planned order report.

Question 40

Load levelling is used to resolve the underloaded and overloaded capacity conditions.

Question 41

Given the following MRP matrix for Item C: If each order cost $500 and the holding cost is $0.75 per item per period, then using the Periodic Order Quantity lot sizing technique, the Planned Order Release for period 4 would be

A) 270.
B) 340.
C) 410.
D) 560.

Question 42

Given the following MRP matrix for Item D: The projected on hand quantity at the end of period 3 would be

A) 0.
B) 20.
C) 60.
D) 70.

Question 43

Given the following MRP matrix for Item D: The planned order receipt for period 6 would be

A) 100.
B) 120.
C) 160.
D) 270.

Question 44

Given the following MRP matrix for Item E: The planned order releases for period 1 would be

A) 300.
B) 200.
C) 75.
D) 0.

Question 45

The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as

A) cycle counting.
B) lot sizing.
C) exploding.
D) netting.

Question 46

The MRP process of determining requirements for lower level items based on the master production schedule is referred to as

A) lot sizing.
B) netting.
C) backward scheduling.
D) exploding.

Question 47

Given the following Product Structure Record: The number of E's required for each A would be

A) 1.
B) 2.
C) 3.
D) 4.

Question 48

A ___ of material is used to plan the production of products with many optional features.

A) K-bill
B) modular bill
C) phantom bill
D) time-phased bill

Question 49

Given the following MRP matrix for Item C: If each order cost $500 and the holding cost is $0.75 per item per period, then using the Periodic Order Quantity lot sizing technique, the Planned Order Release for period 1 would be

A) 270.
B) 290.
C) 340.
D) 560.

Question 50

Given the following Product Structure Record: The number of G's required for each A would be

A) 40.
B) 20.
C) 18.
D) 3.

Question 51

Given the following Product Structure Record: The number of D's required for each A would be

A) 2.
B) 3.
C) 6.
D) 12.

Question 52

A phantom bill of material is used

A) to group small, loose parts together.
B) when the product is manufactured in major subassemblies.
C) for subassemblies that are immediately consumed in the next stage of production.
D) when due dates have not been calculated.

Question 53

Given the following MRP matrix for Item D: The planned order release for period 5 would be

A) 100.
B) 120.
C) 160.
D) 270.

Question 54

___ is a lot-sizing technique that orders for multiple demand periods and is referred to as

A) Lot-for-lot (L4L).
B) Periodic order quantity (POQ).
C) Economic order quantity(EOQ).
D) Multiple order quantity (MOQ).

Question 55

Given the following MRP matrix for Item C: If each order cost $500 and the holding cost is $0.75 per item per period, the periodic order quantity would be

A) 3 periods of requirements.
B) 2 periods of requirements.
C) 1 period of requirements.
D) 0 period of requirements.

Question 56

Given the following Product Structure Record: The number of G's required to assemble 10 A's would be

A) 9.
B) 10.
C) 90.
D) 180.

Question 57

Given the following Product Structure Record: The number of F's required for each A would be

A) 6.
B) 12.
C) 18.
D) 24.

Question 58

Given the following MRP matrix for Item C: If each order cost $500 and the holding cost is $0.75 per item per period, then using the Periodic Order Quantity lot sizing technique, the Projected on Hand at the end of period 7 would be

A) 330.
B) 270.
C) 0.
D) 140.

Question 59

Given the following MRP matrix for Item D: The planned order release for period 3 would be

A) 100.
B) 160.
C) 270.
D) 300.

Question 60

The item master file contains all the following except

A) on-hand quantities.
B) lead times.
C) planned order releases.
D) on-order quantities.

Question 61

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If L4L ordering is used the planned order releases would be

A) 40 in period 1 and 0 in period 3.
B) 80 in period 2 and 60 in period 3.
C) 60 in period 2 and 80 in period 3.
D) 0 in period 1 and 40 in period 3.

Question 62

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If EOQ lot sizing is used to set the minimum order quantity, then the planned order releases would be

A) 40 in period 1 and 0 in period 3.
B) 0 in period 2 and 80 in period 3.
C) 120 in period 2 and 120 in period 3.
D) 100 in period 2 and 100 in period 3.

Question 63

Given the following MRP matrix for Item E: The projected on hand quantity at the end of period 3 would be

A) 0.
B) 100.
C) 300.
D) 500.

Question 64

A while which specifies which machines or workers are required to complete an order from the MRP, is known as the:

A) open orders file
B) routing file
C) MRP file
D) load file

Question 65

Which of the following is not a major input into capacity requirements planning (CRP)?

A) planned order releases
B) routing file
C) load profiles for each work centre
D) open orders file

Question 66

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If the periodic order quantity lot sizing rule is used, then planned order releases in Period 2 would be

A) 40 in period 1.
B) 60 in period 2.
C) 120 in period 3.
D) 140 in Period 2.

Question 67

Given the following Product Structure Record: The number of I's required for each A would be

A) 1.
B) 2.
C) 6.
D) 12.

Question 68

Given the following Product Structure Record: The number of E's required for each A would be

A) 3.
B) 6.
C) 12.
D) 24.

Question 69

Given the following Product Structure Record: The number of F's required for each A would be

A) 2.
B) 3.
C) 12.
D) 16.

Question 70

Given the following Product Structure Record: The number of G's required for each A would be

A) 2.
B) 8.
C) 12.
D) 24.

Question 71

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If the periodic order quantity lot sizing rule is used, the number of periods worth of requirements would be

A) 0.
B) 1.
C) 2.
D) 3.

Question 72

A load profile compares

A) requirements for all lower-level items to higher-level items.
B) cumulative lead times to projected lead times.
C) the quantities in which items should be produced to actual demand.
D) released and planned orders with work centre capacity.

Question 73

Given the following MRP matrix for Item E: The planned order releases for period 3 would be

A) 300.
B) 200.
C) 75.
D) 0.

Question 74

Which of the following is the total length of time to manufacture a product?

A) time fence
B) cumulative lead time
C) production time
D) assembly time

Question 75

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If EOQ lot sizing is used to set the minimum order quantity, then the projected on hand quantity at the end of period 3 would be

A) 40.
B) 0.
C) 100.
D) 20.

Question 76

All of the following can be used for underloaded conditions except

A) acquiring additional work.
B) pushing work back.
C) pulling work ahead.
D) reducing normal capacity.

Question 77

Which of the following would not be used for an overloaded condition?

A) pulling work ahead
B) rerouting jobs to alternative work centres
C) pushing work back
D) splitting lots between two or more machines

Question 78

Given the following MRP matrix for Item E: The planned order releases for period 4 would be

A) 300.
B) 200.
C) 75.
D) 0.

Question 79

Which of the following best describes software that organizes and manages a company's business processes by sharing information across functional areas?

A) EDI
B) ERP
C) RFID
D) CRP

Question 80

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If EOQ lot sizing is used the minimum order quantity would be

A) 85.
B) 100.
C) 120.
D) 150.