Question 1

If safety stock is desired,it should be built into which portion of MRP?
A)any
B)none
C)raw materials
D)finished goods
E)either C or D

Accepted Answer

Safety stock is recommended to be built into either raw materials or finished goods within the MRP to ensure that there is sufficient inventory to cover unexpected demand or supply chain disruptions. Choices A and B are incorrect because safety stock needs to be built into a specific portion of the MRP to ensure proper inventory levels.

Question 2

Explain the difference between a gross requirements plan and a net requirements plan.

Accepted Answer

The answer of Explain the difference between a gross requirements...

Question 3

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Accepted Answer

The answer of ________ are the result of adjusting gross...

Question 4

Distortion in MRP systems can be minimized when safety stock is held at the:
A)purchased component or raw material level.
B)work-in-process level.
C)finished goods level.
D)A and B
E)A and C

Accepted Answer

Holding safety stock at both the purchased component or raw material level and finished goods level can help minimize distortion in MRP systems. Safety stock at the work-in-process level may lead to overproduction and excess inventories. Holding safety stock at the raw material level ensures that there are sufficient materials to start production, while safety stock at the finished goods level ensures that there are enough finished products to meet customer demands. Therefore, option E (holding safety stock at both the purchased component or raw material level and finished goods level) is the best choice to minimize distortion in MRP systems.

Question 5

It is week 1 and there are currently 20 As in stock.We need 300 As at the start of week 5.If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week,when and how large of an order should be placed to meet the requirement of 300 As?
A)Week 1,300 As
B)Week 1,40 As
C)Week 5,40 As
D)Week 4,40 As
E)Week 4,300 As

Accepted Answer

The answer of It is week 1 and there are...

Question 6

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?
A)20
B)120
C)180
D)240
E)440

Accepted Answer

110 units of Product A are required, and 60 units are currently on hand, so the net requirement for Product A is 50 units. 
Each unit of Product A requires 4 units of Part B, so the total requirement for Part B is 50 x 4 = 200 units. 
There are 20 units of Part B available, so the net requirement for Part B is 200 - 20 = 180 units. Therefore, the best choice is C.

Question 7

A manufacturing company is trying to determine the cost of materials used to produce an A.If Fs cost $1 and Ds cost $2 how much does it cost to produce an A (in F and D materials only)?

Accepted Answer

The answer of A manufacturing company is trying to determine...

Question 8

Gross material requirements do not take into account the amount of inventory on hand.

Accepted Answer

Gross material requirements calculations only consider the quantity of raw materials required for production and do not factor in any existing inventory that may already be in stock.

Question 9

In MRP,the number of units projected to be available at the beginning of each time period refers to:
A)net requirements.
B)scheduled receipts.
C)planned order releases.
D)projected on hand.
E)the amount necessary to cover a shortage.

Accepted Answer

The number of units projected to be available at the beginning of each time period refers to projected on hand, which represents the expected inventory level at the beginning of each period after all receipts and planned orders have been taken into account.

Question 10

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

Accepted Answer

The gross requirement is the total quantity needed, which is 100 in this case. The net requirement is the quantity needed after deducting the current stock, which is 90 in this case (100-10=90).

Question 11

Four A washers,five B washers,two C bolts,and a D bolt are required to make one grill parts kit.If 100 grill parts kits are needed,how many more washers will be consumed than bolts?

Accepted Answer

The answer of Four A washers,five B washers,two C bolts,and...

Question 12

Which of the following best describes a gross material requirements plan?
A)a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started
B)an intermediate range plan for the scheduling of families of products
C)a chart illustrating whether capacity has been exceeded
D)a table that corrects scheduled quantities for inventory on hand
E)a schedule showing which products are to be manufactured and in what quantities

Accepted Answer

A gross material requirements plan is a schedule that shows the total demand for an item and when it must be ordered from a supplier or when production must be started. It does not relate to intermediate range planning, capacity analysis, or inventory corrections.

Question 13

An order for 50 units of Product A and 60 of B has been placed.There are currently 25 units of Product B on hand.Each A requires 2 units of Part C;each B requires 5 units of C.There are 160 units of C available.What are the net requirements for C?
A)115
B)175
C)240
D)690
E)700

Accepted Answer

The net requirements for C are calculated as follows: Product A needs 2 units of C per unit, so for 50 units of A, 100 units of C are needed. Product B needs 5 units of C per unit, so for 60 units of B, 300 units of C are needed. However, there are already 25 units of B on hand, which means only 35 units of B need to be produced, requiring 175 units of C (35 units of B * 5 units of C). Therefore, the total requirement for C is 100 (for A) + 175 (for B) = 275 units of C. Since there are 160 units of C available, the net requirement is 275 - 160 = 115 units of C.

Question 14

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.
(a)Calculate the net requirements for M.
(b)Calculate the gross requirements for N.
(c)Calculate the net requirements for N.

Accepted Answer

The answer of An order for 120 units of Product...

Question 15

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

Accepted Answer

When safety stock is necessary, it is added to the inventory requirement of the MRP logic to ensure that enough inventory is on hand to prevent shortages during unforeseen circumstances.

Question 16

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?
A)150
B)170
C)300
D)320
E)440

Accepted Answer

The answer of An order for 110 units of Product...

Question 17

A material requirements plan contains information with regard to all of the following EXCEPT:
A)quantities and required delivery dates of all subassemblies.
B)quantities and required delivery dates of final products.
C)the capacity needed to provide the projected output rate.
D)inventory on hand for each final product.
E)inventory on hand for each subassembly.

Accepted Answer

A material requirements plan (MRP) provides information on the quantities and required delivery dates of subassemblies and final products, as well as inventory levels for both subassemblies and final products. However, the plan does not typically include information on the capacity needed to provide the projected output rate. Capacity planning is usually handled separately from the MRP process.

Question 18

Consider the following product structure.  If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?
A)3
B)40
C)70
D)90
E)110

Accepted Answer

Considering the product structure, we know that for every unit of A, 2 units of B are needed, and for every unit of B, 7 units of C are needed, and finally for every unit of C, 3 units of D are needed. Therefore, for 30 units of A, we need 60 units of B (30 x 2). For these 60 units of B, we need 420 units of C (60 x 7). And finally, for these 420 units of C, we need 1260 units of D (420 x 3). However, we only have 10 units of B on hand, so we can only produce 10/2 = 5 units of A. Therefore, the demand for D would be 30 x 3 x 5 = 450. Since we don't have any units of C on hand, we need to produce all 420 units of C, which means we need 420 x 3 = 1260 units of D. Therefore, the total demand for D would be 450 + 1260 = 1710. Hence, we need a total of 1710 units of D, which is option C.

Question 19

The large parts of a playground A-frame (from which to hang a swing or glider)consist of a ridge pole,four legs,and two side braces.Each pair of legs fastens to the ridge with one fastener set.Each side brace requires two fastener sets for attachment to the legs.Each fastener set includes one zinc-plated bolt,one lock-washer,and one nut.
There is one order outstanding,to make 80 frame kits.There are 200 legs in inventory.There are no other large items in inventory,and no scheduled receipts.Fasteners are available from the small parts area.
a.Draw the product structure tree
b.Calculate the net requirements to fulfill the outstanding order.

Accepted Answer

The answer of The large parts of a playground A-frame...

Question 20

Which of the following statements regarding the gross material requirements plan is TRUE?
A)It shows total demand for an item.
B)It shows when an item must be ordered from a supplier or when production must be started.
C)It combines a master production schedule with the time-phased schedule.
D)It requires several inputs,including an accurate bill of material.
E)All of the above are true.

Accepted Answer

All of the listed statements about the gross material requirements plan are true. It shows total demand, when orders must be placed, combines production and time schedules, and relies on accurate bill of material information.

Quiz 14: Material Requirements Planning Mrpand Erp

If safety stock is desired,it should be built into which portion of MRP?

Explain the difference between a gross requirements plan and a net requirements plan.

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Distortion in MRP systems can be minimized when safety stock is held at the:

It is week 1 and there are currently 20 As in stock.We need 300 As at the start of week 5.If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week,when and how large of an order should be placed to meet the requirement of 300 As?

An order for 110 units of Product A has been placed.There are currently 60 units of Product A on hand.Each A requires 4 units of Part B.There are 20 units of B available.What are the net requirements for B?

A manufacturing company is trying to determine the cost of materials used to produce an A.If Fs cost $1 and Ds cost $2 how much does it cost to produce an A (in F and D materials only)?

Gross material requirements do not take into account the amount of inventory on hand.

In MRP,the number of units projected to be available at the beginning of each time period refers to:

If 100 units of Q are needed and 10 are already in stock,then the gross requirement is 100 and the net requirement is 90.

Four A washers,five B washers,two C bolts,and a D bolt are required to make one grill parts kit.If 100 grill parts kits are needed,how many more washers will be consumed than bolts?

Which of the following best describes a gross material requirements plan?

An order for 50 units of Product A and 60 of B has been placed.There are currently 25 units of Product B on hand.Each A requires 2 units of Part C;each B requires 5 units of C.There are 160 units of C available.What are the net requirements for C?

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand. (a)Calculate the net requirements for M. (b)Calculate the gross requirements for N. (c)Calculate the net requirements for N.

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

An order for 110 units of Product M has been placed.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.What are the net requirements for N?

A material requirements plan contains information with regard to all of the following EXCEPT:

Consider the following product structure. If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

Which of the following statements regarding the gross material requirements plan is TRUE?