Question 1

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

Accepted Answer

This statement is true. Planned order releases are used to generate gross requirements for the components and raw materials needed at the next level of production in a multi-level product structure. This helps ensure that the necessary materials are available when needed and can help prevent delays and bottlenecks in the production process.

Question 2

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

Accepted Answer

A master production schedule takes into account both actual and forecasted demand to determine the quantities of products to produce.

Question 3

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

Accepted Answer

Material requirements planning (MRP) is more useful for complex products because it helps to track and manage the components and subassemblies needed for production. It can also aid in identifying potential bottlenecks or delays in the supply chain for components. However, MRP may not be as effective for simple products that require fewer components or have shorter lead times.

Question 4

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

Accepted Answer

The periodic order quantity (POQ) lot sizing technique places orders at regular intervals of time, but not necessarily every demand period. It is based on determining the optimal order quantity to minimize inventory and ordering costs over the entire ordering cycle.

Question 5

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

Accepted Answer

The answer of Discuss the basics of enterprise resource planning...

Question 6

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

Accepted Answer

The answer of The optimal time required to manufacture a...

Question 7

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

Accepted Answer

MRP is specifically designed for managing and scheduling materials for discrete demand items, such as finished products or components used in manufacturing. It takes into account information such as lead times, inventory levels, and production schedules to ensure that the necessary materials are available when needed to meet customer demand.

Question 8

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

Accepted Answer

Lot sizing rules in Material Requirements Planning (MRP) help determine the optimal order quantities for production or purchasing to meet demand while minimizing costs.

Question 9

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

Accepted Answer

The master production schedule (MPS) primarily focuses on what products to produce and when, not on-hand quantities, lot sizes, or lead times, which are typically found in inventory records or material requirements planning (MRP) systems.

Question 10

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

Accepted Answer

The answer of One objective of material requirements planning (MRP)...

Question 11

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

Accepted Answer

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Question 12

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

Accepted Answer

An MRP system is designed to calculate what materials are needed, when they are needed, and how much is needed to ensure that production can meet demand. This requires both inventory control and production scheduling capabilities.

Question 13

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

Accepted Answer

MRP is a system used to plan and control the inventory, production, and scheduling of materials needed for manufacturing a product based on the master production schedule. It calculates the requirements for components, subassemblies, and raw materials and schedules their deliveries accordingly. Therefore, the given statement is true.

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.

Accepted Answer

The answer of A phantom bill of material is appropriate...

Question 15

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

Accepted Answer

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Question 16

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

Accepted Answer

Material requirements planning (MRP) is a system used to manage inventory and production planning. Very simple products that require minimal resources or production steps may not require MRP as they can be easily managed manually or with a basic inventory system. However, it is important to note that this may vary based on the specific product and production process.

Question 17

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

Accepted Answer

The answer of The total length of time to purchase...

Question 18

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

Accepted Answer

The master production schedule outlines the planned production quantities, which are based on forecasts and orders, rather than the actual demand.

Question 19

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

Accepted Answer

The answer of The master production schedule (MPS) is a...

Question 20

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

Accepted Answer

Modular bills of material are used to define sub-assemblies or modules that can be combined in various ways to create different end products, not specifically for grouping small, loose parts into a kit.

Quiz 15: Resource Planning