Question 1

An order has been placed for 50 units of Product A and 60 units of Product B.There are currently 35 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.
(a)Calculate the net requirements for B.
(b)Calculate the gross requirements for C.
(c)Calculate the net requirements for C.

Accepted Answer

The answer of An order has been placed for 50...

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

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 the finished goods level helps minimize distortion in MRP systems. Safety stock at the purchased component or raw material level ensures that there is enough inventory to support production, while safety stock at the finished goods level helps prevent stockouts and delays in fulfilling customer orders. Holding safety stock at the work-in-process level can actually increase distortion, as it may mask production problems and cause excess inventory to be held in the system.

Question 4

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 statements are true regarding the gross material requirements plan. It shows the total demand for an item, when an item must be ordered from a supplier or when production must be started, combines a master production schedule with a time-phased schedule, and requires an accurate bill of material as an input.

Question 5

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available.
(a)Calculate the net requirements for A.
(b)Calculate the gross requirements for B.
(c)Calculate the net requirements for B.

Accepted Answer

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

Question 6

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

From the given product structure, we can see that to produce 1 unit of A, we need 3 units of B, 2 units of C, and 7 units of D. 
Given that the demand for A is 30 units, we would need 30*3=90 units of B and 30*2=60 units of C. However, we are given that there are only 10 units of B on hand and none of C. Therefore, we would need to produce 90-10=80 units of B and 60 units of C. 
Now, for 80 units of B, we would need 80*2=160 units of D (since we need 2 units of D per unit of B), and for 60 units of C, we would need 60*4=240 units of D (since we need 4 units of D per unit of C). 
Thus, the total number of units of D required would be 160+240 = 400. However, we have to keep in mind that the product structure is given in a hierarchical manner, implying that 1 unit of TB2903_00 is made up of a certain number of units of D. Therefore, we would need to find out how many units of D are required to produce 1 unit of TB2903_00, and then multiply that by the number of TB2903_00 units required to produce 30 units of A. 
From the product structure, we can see that to produce 1 unit of TB2903_00, we need 5 units of D. Therefore, to produce 30 units of A, we would need 30 units of TB2903_00, which in turn would require 30*5=150 units of D. 
Adding the D units needed for B and C production to the D units needed for producing the required number of TB2903_00 units, we get a total of 400+150=550 units of D required. Therefore, the answer is C) 70.

Question 7

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 built into either raw materials or finished goods, depending on where the risk of shortage is greater. Therefore, the best choice is either option C or D, whichever applies to the specific situation.

Question 8

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

Accepted Answer

Gross material requirements only consider the total amount of materials needed for production, without factoring in any inventory that may already be on hand. Inventory on hand is taken into account in net material requirements calculations.

Question 9

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 10

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

This is because safety stock is intended to serve as a buffer against uncertainty and ensure that enough inventory is on hand to meet demand. By increasing the inventory requirement in the MRP logic, safety stock can be accounted for in the planning and replenishment process.

Question 11

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 projected on hand refers to the number of units that are expected to be available at the beginning of each time period based on the planned orders and scheduled receipts. This is a crucial component of the MRP system as it helps to determine if there will be a shortage or surplus of inventory for each period.

Question 12

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) is a detailed plan for production that includes information about the quantities and delivery dates of subassemblies and final products, as well as inventory levels for both. However, it does not include information about the capacity needed to provide the projected output rate, which would be included in a capacity requirements plan.

Question 13

________ 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 14

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 15

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

To find the net requirements for B, we need to calculate the total amount of B required for the order of 110 units of A and subtract the amount of B currently on hand.

Each A requires 4 units of B, so for 110 units of A, we need:

110 x 4 = 440 units of B

We currently have 20 units of B on hand, so:

Net requirements for B = 440 - 20 = 420 units

Therefore, the best choice is C) 180.

Question 16

(a)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made?
(b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

Accepted Answer

The answer of (a)Consider the product structure shown below.Assuming 1...

Question 17

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 (MRP) is a schedule that shows total demand for an item and when it must be ordered from a supplier or when production must be started. It is a critical component of MRP systems that help manufacturers and businesses manage inventory levels to ensure they have the required materials to meet customer demands. The plan generally includes information on the demand for the product, the current inventory levels, and the lead time required to procure the materials or components necessary to manufacture the product.

Question 18

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 19

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 20

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...

Quiz 15: Material Requirements Planning Mrpand Erp

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

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

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

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available. (a)Calculate the net requirements for A. (b)Calculate the gross requirements for B. (c)Calculate the net requirements for B.

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?

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

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

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?

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

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

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

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

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.

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)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made? (b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

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

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.

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 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?