Question 1

Gross requirements for components are equal to the gross requirements of their immediate parent multiplied by the quantity per parent.

Accepted Answer

Gross requirements for components also include additional requirements from other sources such as safety stock, additional orders, or forecasts, not just the multiplication of the immediate parent's requirements by the quantity per parent.

Question 2

The master production schedule (MPS)states which end items are to be produced.

Accepted Answer

The master production schedule clearly states which end items are to be produced.

Question 3

The planned-order releases at one level of an MRP plan determine the gross requirements at the next level down in the bill of material.

Accepted Answer

This statement is true. Planned-order releases are used to determine the gross requirements at the next level down in the bill of material in an MRP plan.

Question 4

A bill of material contains a listing of all the raw materials,parts,and subassemblies needed to produce one unit of an end item.

Accepted Answer

A bill of material (BOM) is a comprehensive list of raw materials, assemblies, subassemblies, parts, and the quantities of each item needed to manufacture a finished product. BOM is used by manufacturers to ensure the availability of necessary parts and assemble them in the right order to create finished products.

Question 5

A phantom bill is a special type of bill of material that is a combination of the bill of materials for a number of subassemblies.

Accepted Answer

The answer of A phantom bill is a special type...

Question 6

Lumpy demand for components required for finished goods results primarily from the periodic scheduling of batch production of the goods.

Accepted Answer

Batch production involves producing a set amount of goods at once, which can result in irregular or lumpy demand for the necessary components.

Question 7

An assembly-time chart indicates gross and net requirements.

Accepted Answer

An assembly-time chart typically shows the schedule for assembling the various components of a product, not the gross and net requirements. Gross and net requirements are usually detailed in materials requirement planning (MRP) documents.

Question 8

The term pegging refers to identifying the parent items that have generated a given set of requirements for a part or subassembly.

Accepted Answer

This is the correct definition of pegging.

Question 9

Dependent demand is derived demand.

Accepted Answer

Dependent demand is demand for components or parts that are required to produce a final product. It is derived from the demand for the final product.

Question 10

For a given component in an MRP plan,under lot-for-lot ordering,planned order sizes are equal to net requirements.

Accepted Answer

In Lot-for-lot ordering, planned order sizes are equal to net requirements. So, the statement is true.

Question 11

The planning horizon for the master production schedule (MPS)should cover or be longer than the cumulative lead time necessary to produce the end items.

Accepted Answer

The planning horizon for the MPS should cover or be longer than the cumulative lead time necessary to produce the end items in order to ensure that there is adequate time to plan and coordinate the production process.

Question 12

Independent demand tends to be more sporadic or "lumpy" than dependent demand.

Accepted Answer

The answer of Independent demand tends to be more sporadic...

Question 13

The bill of material contains information on lead times.

Accepted Answer

The answer of The bill of material contains information on...

Question 14

The three basic inputs of MRP are:
 1)the bill of material; 2)inventory on hand,open orders and lead times; and 3)planned order releases.

Accepted Answer

The answer of The three basic inputs of MRP are:
...

Question 15

The master production schedule (MPS)states which product components are to be produced.

Accepted Answer

The Master Production Schedule (MPS) specifies what is to be made and when, focusing on finished products, not the individual components.

Question 16

MRP requires information on inventory on hand,open orders and lead times and purchase orders for each item in stock.

Accepted Answer

MRP (Material Requirements Planning) is a system that requires information on inventory on hand, open orders, and lead times, as well as purchase orders for each item in stock to plan for future production needs.

Question 17

A master production schedule (MPS)is the principal output developed from MRP systems.

Accepted Answer

The answer of A master production schedule (MPS)is the principal...

Question 18

Dependent demand tends to be intermittent,whereas independent demand tends to be more stable.

Accepted Answer

Dependent demand is based on the demand for another item or product, and therefore tends to be less predictable and more intermittent. On the other hand, independent demand refers to the demand for a final product, which tends to be more stable and predictable.

Question 19

The MRP requires a list of the individual parts that will be converted to finished goods.

Accepted Answer

The Material Requirements Planning (MRP) system requires a list of the individual components or parts that make up a finished product in order to determine the quantities and timing of materials that will be needed to produce the finished goods.

Question 20

MRP usually involves inventory items that have independent demand.

Accepted Answer

MRP (Material Requirements Planning) typically involves inventory items that have dependent demand, meaning their demand is driven by the production schedules of finished goods rather than by external market demand.

Quiz 14: Material Requirements Planning and Enterprise Resource Planning