Question 1

The least total cost method (LTC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

The least total cost method (LTC)is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Question 2

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

Accepted Answer

Lot-for-lot (L4L)is the most common technique.It
• Sets planned orders to exactly match the net requirements.
• Produces exactly what is needed each week with none carried over into future periods.
• Minimizes carrying cost.
• Does not take into account setup costs or capacity limitations

Question 3

The three main inputs to an MRP system are the bill of materials,the master schedule and the inventory records file.

Accepted Answer

This BOM file is one of the three main inputs to the MRP program.(The other two are the master schedule and the inventory records file. )

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

The least unit cost method is a dynamic lot-sizing technique that 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.

Question 5

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

Accepted Answer

Projected available balance is the amount of inventory that is expected as of the end of a period (or the beginning of the next period).

Question 6

A lot-for-lot (L4L)lot sizing technique does not take into account setup costs or capacity limitations.

Accepted Answer

Lot-for-lot (L4L)is the most common technique.It:
• Sets planned orders to exactly match the net requirements.
• Produces exactly what is needed each week with none carried over into future periods.
• Minimizes carrying cost.
• Does not take into account setup costs or capacity limitations.

Question 7

The economic order quantity (EOQ)lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

Accepted Answer

EOQ assumes that parts are used continuously during the period.The lot sizes generated by EOQ do not always cover the entire number of periods.For example,the EOQ might provide the requirements for 4.6 periods (when another EOQ would be needed).

Question 8

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

Accepted Answer

The EOQ model balances setup and holding costs.

Question 9

Low level coding in MRP indicates the exact status of each item managed by the system in "real time."

Accepted Answer

Low-level coding (is where)each item is placed at the lowest level at which it appears in the structure hierarchy.

Question 10

Lot-for-lot (L4L)is the most common lot sizing technique.

Accepted Answer

Lot-for-lot (L4L)is the most common technique.

Question 11

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

Accepted Answer

Projected available balance is the amount of inventory (not just unsold finished goods)that is expected as of the end of a period.

Question 12

Generally,determining lot sizes in MRP systems is simple.

Accepted Answer

Determination of lot sizes in an MRP system is a complicated and difficult problem.

Question 13

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

Accepted Answer

The EOQ model balances setup and holding costs.

Question 14

Net change MRP reflects the exact status of each item managed by the system in "real time."

Accepted Answer

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

Question 15

In a net change MRP program,a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

Accepted Answer

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

Question 16

In a net change MRP system requirements and schedules are considered rigid and never updated.

Accepted Answer

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

Question 17

Net change MRP systems are "activity" driven.

Accepted Answer

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

Question 18

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

The least unit cost method is a dynamic lot-sizing technique that 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.

Question 19

The least unit cost method of lot-sizing adds ordering,stock-out 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

The least unit cost method is a dynamic lot-sizing technique that 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.

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

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item.Net change enables the system to reflect in "real time" the exact status of each item managed by the system.

Quiz 9: Material Requirements Planning

The least total cost method (LTC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

The three main inputs to an MRP system are the bill of materials,the master schedule and the inventory records file.

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.

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

A lot-for-lot (L4L)lot sizing technique does not take into account setup costs or capacity limitations.

The economic order quantity (EOQ)lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

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

Low level coding in MRP indicates the exact status of each item managed by the system in "real time."

Lot-for-lot (L4L)is the most common lot sizing technique.

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

Generally,determining lot sizes in MRP systems is simple.

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

Net change MRP reflects the exact status of each item managed by the system in "real time."

In a net change MRP program,a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.

In a net change MRP system requirements and schedules are considered rigid and never updated.

Net change MRP systems are "activity" driven.

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

The least unit cost method of lot-sizing adds ordering,stock-out 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.

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