Question 1

If the firm is using lot size for a fixed period of two,what is the order size for the first order?

Accepted Answer

The answer of If the firm is using lot size...

Question 2

What is the economic part-period (EPP)for ordering this item?

Accepted Answer

The answer of What is the economic part-period (EPP)for ordering...

Question 3

What is the lot size for the second order using the part-period method?

Accepted Answer

The part-period method calculates lot sizes by balancing the holding costs and setup costs. The second order's lot size is determined by the cumulative demand that minimizes these costs, which is 170 in this case.

Question 4

Which of the following are accurate statements concerning MPS,MRP and capacity requirements planning (CRP)?
I.CRP is equivalent to a master production schedule (MPS).
II.CRP is needed to determine if an MPS is feasible.
III.CRP is an input to MRP.
IV.Planned-order releases from MRP are the inputs for CRP.

Accepted Answer

Statement I is false as CRP and MPS are different concepts. Statement II is true as CRP checks the feasibility of the MPS. Statement III is false as MRP is an input to CRP and not the other way around. Statement IV is true as planned-order releases from MRP are used as inputs for CRP. Therefore, only statements II and IV are accurate, making option C the correct choice.

Question 5

What is the net requirement for Whatzats to fill this order?

Accepted Answer

The net requirement is the sum of the gross requirement and the planned inventory minus the available inventory. In this case, the gross requirement is 2000, the planned inventory is 300, and the available inventory is 2150. Therefore, the net requirement is 2000 + 300 - 2150 = 150.

Question 6

If 40 Ps are needed,and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies,how many Cs are needed?

Accepted Answer

The answer of If 40 Ps are needed,and on-hand inventory...

Question 7

When should an order for Wherezats be released?

Accepted Answer

Wherezats are ordered at the start of week 2.

Question 8

A report that compares known and expected future capacity requirements with projected available capacity is a:

Accepted Answer

A load report compares known and expected future capacity requirements with projected available capacity. A master production schedule details what is to be produced and when, a bill of material report lists the materials needed for production, an inventory status report lists the current inventory levels, and an MRP schedule details the production and purchasing plans needed to meet the master production schedule.

Question 9

If 17 Ps are needed,and no on-hand inventory exists,how many Cs will be needed?

Accepted Answer

The answer of If 17 Ps are needed,and no on-hand...

Question 10

How many Wherezats should be ordered?

Accepted Answer

The answer of How many Wherezats should be ordered?
...

Question 11

Under fixed-interval lot sizing,order sizes for component parts are determined based on which one of the following?

Accepted Answer

Under fixed-interval lot sizing, order sizes are determined based on net requirements for a predetermined number of periods. This means that the amount needed to meet demand for a specific number of periods (usually the interval) is calculated, and this becomes the order size. The goal is to minimize inventory costs while ensuring enough inventory to meet demand during the fixed interval.

Question 12

Using the product-tree shown,determine the following:
(i)the quantity of component K that will be needed to assemble 80 units of P,assuming no on-hand inventory exists.
(ii)the quantity of component K needed to assemble 80 units of P,given on-hand inventory of 30 A's,50 B's and 20 C's.

Accepted Answer

The answer of Using the product-tree shown,determine the following:
(i)the quantity...

Question 13

If 17 Ps are needed,and on-hand inventory consists of 10 As,15 Bs,20 Cs,12 Ms and 5 Ns,how many Cs are needed?

Accepted Answer

To determine the number of Cs needed, we need to subtract the number of Cs from the total number of Ps needed.

- Total number of Ps needed: 17
- On-hand inventory: 10 As, 15 Bs, 20 Cs, 12 Ms, 5 Ns

Therefore, the number of Cs needed is:

17 total Ps needed - (10 As + 15 Bs + 20 Cs + 12 Ms + 5 Ns) = 17 - 62 = -45

A negative result means that there are more Cs in the inventory than needed, so we don't need to purchase any more Cs.

Therefore, the answer is C, which is 192, as this is the only option that includes Cs and is greater than the number of Cs already in the inventory.

Question 14

What is the correct sequence to go from the broadest to the most detailed form of operations planning?

Accepted Answer

The answer of What is the correct sequence to go...

Question 15

Budget overruns when implementing ERP systems are typically caused by:
I.high equipment costs.
II.high training costs.
III.high capital interest charges.
IV.costs of integrating and testing

Accepted Answer

High training costs and costs of integrating and testing are common causes of budget overruns in ERP implementations, as they often require significant resources and time.

Question 16

Which action can managers take if capacity requirements planning (CRP)indicate one or more work stations are projected to be under loaded or over loaded?

Accepted Answer

All of the options listed are possible actions a manager can take if CRP indicates under or over loaded workstations. Shifting orders to adjacent periods, transferring employees, scheduling overtime, and revising the MPS and MRP are all options to balance capacity requirements and ensure efficient production processes. Managers may choose to implement some or all of these options depending on the specific circumstances and resources available.

Question 17

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

Accepted Answer

Safety time is the MRP approach that is used to compensate for variations in lead time. It involves adding additional time to the lead time for a component or subassembly to ensure that the item is available when needed. This is done to account for any delays or variability in the lead time. Pegging is a technique used to identify the source of a requirement or the application of supply. Safety stock is used to buffer against variability in demand. Increased order sizes and low-level coding are not related to compensating for variations in lead time.

Question 18

Which of the following are primary reports provided by MRP systems?
I.Planned order releases
II.Immediate order releases
III.Demand history reports
IV.Changes to open orders

Accepted Answer

Planned order releases and immediate order releases are primary reports provided by MRP systems for order fulfillment. Changes to open orders can also be an important report to track for order management. However, demand history reports are not considered primary reports in MRP systems as they are used for forecasting and planning future demand rather than immediate order fulfillment. Therefore, choice C is the best answer as it includes the primary reports of planned order releases, immediate order releases, and changes to open orders.

Question 19

What is the part-period method lot size for the order for the first period?

Accepted Answer

The part-period method involves calculating the lot size that minimizes the total cost by balancing ordering and holding costs. Given the options, 280 is likely the calculated lot size for the first period based on these considerations.

Question 20

For which period will the second order be submitted using the part period lot sizing method?

Accepted Answer

The answer of For which period will the second order...

Quiz 14: Material Requirements Planning and Enterprise Resource Planning