Deck 16: Materials Requirements Planning and ERP

Question 1

A requirements-based system derives orders from:

A)Customer requests
B)Forecast
C)Bill of materials
D)Master schedule

Answer 1

Master schedule

Question 2

A Type II MRP system:

A)Only launches orders
B)Has feedback to control capacity
C)Includes planning for personnel and capital
D)Is also known as an Enterprise Resource Planning System

Answer 2

Has feedback to control capacity

Question 3

Safety stock in an MRP system:

A)Is never needed
B)Is used to provide flexibility to meet changing customer requirements
C)Must provide a 100% service level
D)Is planned at the part level,independent of the safety stock of other parts

Answer 3

Is used to provide flexibility to meet changing customer requirements

Question 4

Planned lead times:

A)Usually are longer than actual working times
B)Ignore interference from other jobs
C)Usually are shorter than actual working times
D)Assume the work is expedited and completed as quickly as possible

Question 5

Type I Material requirements planning systems:

A)Are push production systems
B)Assume infinite capacity while scheduling the jobs in a factory
C)Schedule backward in time starting with the due date of the job
D)All of the above

Question 6

Which of the following most closely describes net material requirements in an MRP system?

A)Gross requirements - planned receipts
B)Gross requirements - (on-hand + scheduled receipts)
C)Gross requirements - on-hand + scheduled receipts
D)Gross requirements - planned order releases

Question 7

All of the following help to handle uncertainty when operating an MRP system EXCEPT:

A)Safety stock
B)Safety lead-time
C)Safety capacity
D)Back-up suppliers

Question 8

A replenishment-based system derives orders from:

A)Capacity available
B)Forecast or customer request
C)Bill of materials
D)Master schedule

Question 9

The gross requirements of a part in an MRP system are determined from:

A)Net requirements + on-hand
B)Net requirements of end item
C)Gross requirements of the immediate part
D)Planned order releases of the immediate parent item

Question 10

Bills of materials are kept current with changes using:

A)Master scheduling systems
B)Engineering change order systems
C)Inventory tracking systems
D)Capacity planning systems

Question 11

Which system specifies the output of the operations function?

A)Parts explosion
B)Bill of materials
C)Master scheduling
D)Capacity planning

Question 12

The parts explosion results in the following outputs:

A)Purchase orders and S&OP (aggregate planning)
B)Purchase orders and bill of materials
C)Purchase orders and shop orders
D)Shop orders and inventory orders

Question 13

Successful MRP implementation requires:

A)Management support,parts explosion,and adequate computer support
B)Marketing support,master schedule,and bill of materials
C)Management support,accurate data,and adequate computer support
D)None of the above

Question 14

Cycle counting:

A)Is counting a fraction of inventory each day
B)Does not eliminate the need for annual physical inventory
C)Is a way to plan inventory on a cyclic basis
D)Is a way to decide how much to order

Question 15

Which of the following is true about MRP Systems?

A)Forecast is based on past demand
B)Lot sizing is EOQ
C)Demand pattern is random
D)Objective is to meet manufacturing needs

Question 16

The bill of materials:

A)Shows how much inventory is available
B)Is a bill sent to the customer for material ordered
C)Is a list of all materials required to produce a part
D)None of the above

Question 17

Which type of MRP system is used as an information system to plan and control inventories and capacities?

A)Type I
B)Type II
C)ERP
D)None of the above

Question 18

Successful MRP system elements include:

A)Implementation planning
B)Accurate data
C)User knowledge
D)All of the above

Question 19

An MRP system is designed to deal with:

A)Lumpy demand
B)Constant demand
C)Uncertain demand
D)Random demand

Question 20

The three inputs for an MRP parts explosion are:

A)Inventory,master schedule,and bill of materials
B)Forecast,inventory,and bill of materials
C)Capacity,master schedule,and inventory
D)Forecast,bill of materials,and master schedule

Question 21

Forecasting demand in MRP Systems is based on the past demand patterns for components.

Question 22

MRP systems work better in a line flow system compared to a job shop.

Question 23

The master schedule should be frozen inside the production lead-time.

Question 24

MRP is a type of pull system.

Question 25

The master schedule is prepared for product families.

Question 26

In MRP "scheduled receipts" are:

A)Identical to "planned order receipts"
B)Identical to "planned order releases"
C)Identical to "net requirements"
D)Open orders not delivered yet

Question 27

Order launching MRP systems are also known as Type II MRP systems.

Question 28

_______ system uses requirements order philosophy,while _____ system uses replenishment order philosophy.

A)Order point,MRP
B)MRP,order point
C)EOQ,Quantity Discount
D)P,Q

Question 29

The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.

Question 30

A bill of materials can be coupled with a bill of labor if MRP systems are to be used in service industries.

Question 31

When a company uses an ERP system,the different functional areas of the business will share a common database.

Question 32

Compare and contrast MRP systems and Order Point systems of managing inventories.When do firms prefer MRP systems to Order Point Systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.

Question 33

In MRP systems,inventories are managed according to their dollar usage values (i.e.,high dollar usage inventories are more carefully managed compared to low dollar usage inventories).

Question 34

The master production schedule for Product A shows a need for 30 units,and Product B shows a need of 25 units.To manufacture a unit of Product A,three units of component C are required.To manufacture a unit of Product B,four units of component C are required.Determine the gross requirements for component C to complete production.

A)55
B)190
C)110
D)380
E)None of the above