Question 1

A BOM file is also called which of the following?

Accepted Answer

A)   Product tree
B)   Stocking plan
C)   Inventory usage record
D)   Production parts plan
E)   Time bucket scheduleF) B) and C)
G) A) and D)

Question 2

The master production schedule deals exclusively with dependent demand items.

Accepted Answer

A) True 
 B)False

Question 3

A modular bill-of-materials includes items with fractional options.

Accepted Answer

A) True 
 B)False

Question 4

The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs 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

A) True 
 B)False

Question 5

MRP systems seek to achieve which of the following?

Accepted Answer

A)   Minimize lot sizes.
B)   Determine the number of dependent demand items needed.
C)   Relieve capacity bottlenecks.
D)   Provide a yardstick for future improvements.
E)   Improve on JIT methods.F) C) and D)
G) C) and E)

Question 6

This industry type combines multiple component parts into a finished product, which is then stocked in inventory to satisfy customer demand.

Accepted Answer

A)   Assemble-to-stock
B)   Make-to-stock
C)   Assemble-to-order
D)   Make-to-order
E)   Engineer-to-orderF) B) and E)
G) C) and D)

Question 7

Which of the following is an input to the master production schedule?

Accepted Answer

A)   Prototype products from product development
B)   Aggregate component schedule
C)   Peg reports
D)   Exception reports
E)   Forecasts of random demand from customersF) A) and B)
G) All of the above

Question 8

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following industry types have high expected benefits from the application of MRP?

Accepted Answer

A)   Fabricate-to-order
B)   Hospitals
C)   Assemble-to-order
D)   Aircraft manufacturers
E)   Oil refineriesF) All of the above
G) B) and D)

Question 10

MRP is based on dependent demand.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a lot-sizing technique used in MRP systems?

Accepted Answer

A)   Lot-for-lot (L4L) 
B)   Economic order quantity (EOQ) 
C)   Least total cost (LT
C)  
D)   Least unit cost (LU
C)  
E)   Warehouse loading factor (WLF) F) A) and B)
G) B) and C)

Question 12

A product tree can do which of the following?

Accepted Answer

A)   Help to compute component usage.
B)   Reduce product scrap.
C)   Reduce labor overtime.
D)   Reduce regular time labor.
E)   Locate raw material supplies.F) All of the above
G) A) and B)

Question 13

Which of the following is not a production activity report generated by MRP?

Accepted Answer

A)   Exception report
B)   Planning report
C)   Performance control report
D)   Planned-order schedules
E)   Bill-of-materials reportF) C) and E)
G) B) and C)

Question 14

In this industry type, items are manufactured by machine to customer order. These are generally industrial orders.

Accepted Answer

A)   Process
B)   Make-to-stock
C)   Assemble-to-order
D)   Make-to-order
E)   Engineer-to-orderF) A) and D)
G) All of the above

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. What is the low level code (LLC)  for B and C?

Accepted Answer

A)   LLC for B is 2 and C is 1.
B)   LLC for both B and C is 2.
C)   LLC for B is 1 and C is 2.
D)   LLC for B is 0 and C is 1.
E)   LLC for all items is 1.F) C) and E)
G) All of the above

Question 17

Which of the following is considered a primary report in an MRP system?

Accepted Answer

A)   Planned-order schedule
B)   Peg report
C)   Planning report
D)   Inventory accuracy report
E)   Aggregate production plan reportF) A) and B)
G) A) and C)

Question 18

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

Accepted Answer

A)   1,000
B)   950
C)   500
D)   400
E)   350F) B) and C)
G) D) and E)

Question 19

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 21: Material Requirements Planning

MRP systems seek to achieve which of the following?

Correct AnswerverifiedShow Answer

MRP is based on dependent demand.

Correct AnswerverifiedShow Answer

Which of the following is not a lot-sizing technique used in MRP systems?

Correct AnswerverifiedShow Answer

Which of the following is not a production activity report generated by MRP?

Correct AnswerverifiedShow Answer

A product tree can do which of the following?

Correct AnswerverifiedShow Answer

Which of the following is considered a primary report in an MRP system?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

This industry type combines multiple component parts into a finished product, which is then stocked in inventory to satisfy customer demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The master production schedule deals exclusively with dependent demand items.

Correct AnswerverifiedShow Answer

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

Correct AnswerverifiedShow Answer

A modular bill-of-materials includes items with fractional options.

Correct AnswerverifiedShow Answer

The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs 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.

Correct AnswerverifiedShow Answer

Which of the following is an input to the master production schedule?

Correct AnswerverifiedShow Answer

MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.

Correct AnswerverifiedShow Answer

In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. What is the low level code (LLC) for B and C?

Correct AnswerverifiedShow Answer

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

Correct AnswerverifiedShow Answer

In this industry type, items are manufactured by machine to customer order. These are generally industrial orders.

Correct AnswerverifiedShow Answer

A BOM file is also called which of the following?

Correct AnswerverifiedShow Answer

Which of the following industry types have high expected benefits from the application of MRP?

Correct AnswerverifiedShow Answer

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