Chapter 9 Material Requirements Planning Complete Test Bank - Supply Chain Management Core 5e Complete Test Bank by F. Robert Jacobs. DOCX document preview.
Operations and Supply Chain Management: The Core, 5e (Jacobs)
Chapter 9 Material Requirements Planning
1) MRP stands for manufacturing requirements planning.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) MRP stands for material requirements planning.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Analytic
Accessibility: Keyboard Navigation
3) Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) MRP is based on dependent demand.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
5) MRP is most valuable where a number of products are made in batches using the same productive equipment.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) The master production schedule states the number of items to be produced during specific time periods.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) MRP is least valuable in industries where a number of products are made in batches using the same productive equipment.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy."
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
12) A master production schedule is an input to a material requirements planning (MRP) system.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
13) An input to the material requirements planning (MRP) system is an exception report.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
14) An input to the material requirements planning (MRP) system is an inventory records file.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
15) An output of MRP is a bill of materials (BOM) file.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
16) A BOM file is often called a product structure file or product tree because it shows how a product is put together.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
17) Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
18) A modular bill of materials includes items with fractional options.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
19) A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
20) The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
21) Net change MRP systems are "activity" driven.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
22) In a net change MRP system, requirements and schedules are updated whenever a transaction is processed that has an impact on the item.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
23) In a net change MRP system, requirements and schedules are considered rigid and never updated.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
24) Net change MRP reflects the exact status of each item managed by the system in "real time."
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
25) Low level coding in MRP indicates the exact status of each item managed by the system in "real time."
Difficulty: 1 Easy
Topic: An Example Using MRP
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
26) In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
27) Generally, determining lot sizes in MRP systems is simple.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
28) A lot-for-lot (L4L) lot sizing technique does not take into account setup costs or capacity limitations.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
29) The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.
Difficulty: 2 Medium
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
30) Lot-for-lot (L4L) is the most common lot sizing technique.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
31) The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
32) The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance setup cost, carrying cost and cost of stock-outs.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
33) The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance setup cost and carrying cost.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
34) The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
35) The least unit cost method (LUC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
36) The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost 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.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
37) The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying cost 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.
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
38) "Projected available balance" is a term referring to unsold finished goods inventory.
Difficulty: 1 Easy
Topic: An Example Using MRP
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
39) Projected available balance is the amount of inventory that is expected only at the beginning of a period.
Difficulty: 1 Easy
Topic: An Example Using MRP
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
40) The three main inputs to an MRP system are the bill of materials, the master schedule and the inventory records file.
Difficulty: 2 Medium
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
41) When implemented correctly, MRP links all areas of the business.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
42) The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP.)
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
43) The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
44) Time fences are periods of time having some specified level of opportunity for the customer to make changes.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
45) The customer grace period is a time-span having some specified level of opportunity for the customer to make changes.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
46) A BOM file is also called which of the following?
A) Product tree
B) Stocking plan
C) Inventory usage record
D) Production parts plan
E) Time bucket schedule
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
47) Which of the following industry types have high expected benefits from the application of MRP?
A) Fabricate-to-stock
B) Fabricate-to-order
C) Assemble-to-stock
D) Continuous process
E) Service and repair parts
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
48) Which of the following industry types have high expected benefits from the application of MRP?
A) Fabricate-to-order
B) Hospitals
C) Assemble-to-order
D) Aircraft manufacturers
E) Oil refineries
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
49) Which of the following industry types will not benefit greatly from the application of MRP?
A) Fabricate-to-order
B) Assemble-to-stock
C) Assemble-to-order
D) Manufacture-to-order
E) None of these
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
50) A product tree can do which of the following?
A) Help to compute component usage
B) Reduce product scrap
C) Reduce labor overtime
D) Reduce regular time labor
E) Locate raw material supplies
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
51) Which of the following is an input to the master production schedule (MPS)?
A) Inventory records file
B) The aggregate plan
C) The bill of materials
D) The exception report
E) Planned order schedules
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
52) Which of the following is one of the main purposes of a MRP system?
A) Educate personnel in basic work rules
B) To determine the amount of materials needed to produce each end item.
C) Stimulate the work force
D) Decrease labor requirements
E) Increase inventory accuracy
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
53) One of the main purposes of a MRP system is which of the following?
A) Track inventory levels.
B) Create productive capacity.
C) Decrease layers of management.
D) Develop schedules specifying when each component should be ordered or produced.
E) Upgrade manufacturing's professionalism.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
54) Which of the following is most closely related to the reason a firm might implement MRP?
A) So they can order the right parts
B) So they can order parts sufficient for immediate use
C) So they can insure that parts to arrive prior to when they are needed
D) To assure appropriate quality levels
E) To keep process costs between the LCL and the UCL
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
55) MRP systems seek to achieve which of the following?
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
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
56) Which of the following is an input to the master production schedule?
A) Prototype products from product development
B) Aggregate component schedule
C) Peg reports
D) Exception reports
E) Forecasts of demand from customers
Difficulty: 1 Easy
Topic: An Example Using MRP
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
57) Which of the following is an input to the master production schedule?
A) Bill of materials (BOM) file
B) Inventory records file
C) Exception reports
D) Planned-order schedules
E) None of these
Difficulty: 2 Medium
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
58) Which of the following is an input file necessary to run an MRP system?
A) Bill of materials (BOM) file
B) Quality management report
C) Exception reports
D) Planned-order schedules
E) Purchasing contracts
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
59) Which of the following is an input file necessary to run an MRP system?
A) Exception report
B) Computer-aided-design files
C) Inventory records file
D) Personnel files
E) Planned order schedule
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
60) Which of the following is not a production activity report generated by MRP?
A) Exception report
B) Planning report
C) Performance control report
D) Planned-order schedules
E) Bill of materials report
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
61) In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following?
A) Cubed time units
B) Time buckets
C) BOM units
D) Time modules
E) Time lines
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
62) Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?
A) Planning bill of materials file
B) Modular bill of materials file
C) Super bill of materials file
D) Exception report file
E) Peg record file
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
63) We would expect to see which of the following in an MRP system's inventory status file?
A) End items produced
B) Late/early delivery records
C) Scrap losses
D) Labor efficiency
E) Computer errors
Difficulty: 2 Medium
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
64) In a typical inventory status record which of the following would you not expect to see?
A) Scrap allowance
B) Order quantity
C) Gross requirements
D) Planned-order releases
E) Lost items
Difficulty: 2 Medium
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
65) Which of the following is considered a primary report in an MRP system?
A) Planning reports
B) Performance reports
C) Exception reports
D) Planned order schedules
E) Cycle counting reports
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
66) Which of the following is considered a secondary report in an MRP system?
A) Planned order schedule
B) Exceptions reports
C) Inventory record
D) Firm orders from known customers
E) Engineering change reports
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
67) Which of the following is considered a primary report in an MRP system?
A) Planned order schedule
B) Peg report
C) Planning report
D) Inventory accuracy report
E) Aggregate production plan report
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
68) Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?
A) 1,200
B) 1,300
C) 1,150
D) 2,450
E) None of these
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
69) 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?
A) 1,000
B) 950
C) 500
D) 400
E) 350
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
70) Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200, and planned receipts are 800?
A) 7,000
B) 4,200
C) 3,000
D) 2,000
E) 1,200
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
71) Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?
A) 670
B) 600
C) 530
D) 70
E) None of these
Difficulty: 1 Easy
Topic: Material Requirements Planning System Structure
Learning Objective: 09-02 Understand how the MRP system is structured.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
72) Which of the following can be used for lot sizing in an MRP system?
A) Low-level coding
B) Time bucket size
C) Least unit cost
D) Inventory record file
E) Peg inventory
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
73) Which of the following is not a lot sizing technique used in MRP systems?
A) Lot-for-lot (L4L)
B) Economic order quantity (EOQ)
C) Least total cost (LTC)
D) Least unit cost (LUC)
E) Warehouse loading factor (WLF)
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
74) Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
A) A consistent lag of supply behind demand
B) Minimized carrying costs
C) Minimized set-up costs
D) A just in time management philosophy
E) Minimized quality problems
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
75) If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?
A) 350
B) 247
C) 23
D) 185
E) 78
Difficulty: 2 Medium
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
76) If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?
A) 2,000
B) 1,200
C) 1,000
D) 300
E) 200
Difficulty: 2 Medium
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
77) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?
A) Economic order quantity
B) Lot-for-lot
C) Least total cost
D) Least unit cost
E) ABC analysis
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
78) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?
A) Kanban
B) Just-in-time system
C) MRP
D) Least unit cost
E) Least total cost
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
79) Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost 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?
A) Economic order quantity
B) Lot-for-lot
C) Least total cost
D) Least unit cost
E) Inventory item averaging
Difficulty: 1 Easy
Topic: Lot Sizing in MRP Systems
Learning Objective: 09-04 Evaluate and compare MRP lot-sizing techniques.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
80) The acronym ERP stands for:
A) Executive reliability profile—A human resources program that identifies fast-track middle managers.
B) Erratic response parameter—A quality metric indicating that a process is in or out of statistical control.
C) Enterprise resource planning—A data base of that ties together all application programs in a firm.
D) Emergency response plan—A document required by government indicating planned responses to emergency situations.
E) Elevated reply protocol—A list of executives authorized to deal with difficult customer concerns.
Difficulty: 1 Easy
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
81) From the list below select the one item that the master scheduler does not do to ensure good master scheduling.
A) Include all demands from product sales, warehouse replenishment, spares, and interplant requirements.
B) Be involved with customer order promising.
C) Be visible to all levels of management.
D) Trade off conflicts to make it likely that manufacturing will meet its goals.
E) Identify and communicate all problems.
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
82) Freezing the master schedule is:
A) not truly feasible because down the road it will become slushy again.
B) a commitment to precisely follow the master schedule in the future.
C) done to avoid the chaos of expediting and resultant overdue orders.
D) preserves the master schedule until it is ready to be used.
E) rarely attempted by manufacturing firms.
Difficulty: 2 Medium
Topic: Understanding Material Requirements Planning
Learning Objective: 09-01 Explain what material requirements planning (MRP) is.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
83) 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-for-lot method for order quantities for all items. If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?
A) 0
B) 1,000
C) 500
D) 1,500
E) 6,500
Difficulty: 2 Medium
Topic: Performing MRP Calculations
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
84) 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. Initial inventory values for A is 100, B is 200 and C is 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?
A) 1,600
B) 1,400
C) 700
D) 800
E) 1,200
Difficulty: 2 Medium
Topic: Performing MRP Calculations
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
85) In an MRP problem, A is an MPS item. Every A requires 3 B's and 2 C's. Every B requires 5 C's. All lead times are one period. Initial inventory values for all items are 0. Use lot-for-lot method for order quantities for all items. If gross requirement for A is 400 in period 10, what will be the planned order release for C in period 8?
A) 800
B) 1,600
C) 6,800
D) 6,000
E) 1,200
Difficulty: 2 Medium
Topic: Performing MRP Calculations
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
86) 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-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?
A) LLC for B is 2 and C is 1
B) LLC for both B and C are 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 are 1
Difficulty: 2 Medium
Topic: Performing MRP Calculations
Learning Objective: 09-03 Analyze an MRP problem.
Bloom's: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
Document Information
Connected Book
Supply Chain Management Core 5e Complete Test Bank
By F. Robert Jacobs