Chapter 12

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) accurate demand forecasts (III) accurate holding and backordering costs (IV) accurate bills of materials A. I, II, and IV only B. I, III, and IV only C. I, II, and III only D. I and II only E. I, II, III, and IV

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency. A. MRP B. ERP C. CRP D. MRPII E. DRP

Backflushing takes place: A. when inventory records need updating. B. after some bills of material have been found to be inaccurate. C. after production has been completed. D. when customer orders are being reconciled. E. when previous periods' planned releases are converted to scheduled receipts.

Scheduled receipts differ from planned receipts in that scheduled receipts: A. have longer lead times. B. involve orders that have not yet been placed. C. have not been pegged with actual customer orders. D. involve orders that have already been placed. E. involve exceptions to order quantity policies.

MRP can apply to services, especially when it is focused on: (I) work-in-process inventory. (II) finished goods inventory. (III) service components. (IV) materials that are part of the service process. A. II and IV only B. I and III only C. I, II, and IV only D. I, III, and IV only E. III and IV only

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases A. II, III, and IV only B. I, II, and IV only C. I, III, and IV only D. I and II only E. I, II, III, and IV

Capacity requirements planning helps managers reconcile __________ with __________. A. what is needed; what has been done B. what is needed; what is possible C. what has been done; who will be doing it D. what needs to be done; where it will be done E. what has been done; how much what needs to be done will cost

Which of the following most closely describes dependent demand? A. demand generated by suppliers B. estimates of demand using regression analysis of independent variables C. derived demand D. demands placed on suppliers by their customers E. net material requirements

ERP implementation probably will not require: A. cross-functional teams. B. just a few weeks to install. C. intensive training. D. high funding for both initial cost and maintenance. E. frequent upgrades after installation.

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is: A. computer-aided manufacturing. B. computer-integrated manufacturing. C. economic order quantity. D. material requirements planning. E. economic run size.

The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2): A. computers. B. development of the EOQ model. C. inventory control systems. D. blanket purchase orders. E. the Internet.

The output of MRP is: A. gross requirements. B. net requirements. C. a schedule of requirements for all parts and end items. D. inventory reorder points. E. economic order quantities and reorder points.

Which one of the following is not an input in an MRP system? A. planned-order schedules B. bill of materials C. master production schedule D. inventory records E. All are inputs.

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: A. master schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

In an MRP master schedule, the planning horizon is often separated into a series of time periods called: A. pegging. B. lead times. C. stacked lead times. D. time buckets. E. firm, fixed, and frozen.

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the: A. master production schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n): A. assembly time chart. B. product structure tree. C. MRP II. D. pegging. E. Gantt chart.

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the: A. master production schedule. B. bill of materials. C. inventory records. D. assembly time chart. E. net requirements chart.

Which one of the following most closely describes net material requirements? A. gross requirements - amount on hand - scheduled receipts B. gross requirements - planned receipts C. gross requirements - order releases + amount on hand D. gross requirements - planned order releases E. gross requirements - amount on hand + planned order releases

In MRP, scheduled receipts are: A. identical to planned-order receipts. B. identical to planned-order releases. C. open orders (that is, ordered before the first time bucket, but not delivered yet). D. net requirements. E. available-to-promise inventory.

In MRP, under lot-for-lot ordering, planned-order receipts are: A. identical to scheduled receipts. B. identical to planned-order releases. C. open orders (that is, ordered before the first time bucket, but not delivered yet). D. gross requirements. E. available-to-promise inventory.

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? A. gross requirements B. net requirements C. economic order quantity D. gross requirements and net requirements E. net requirements and amount on hand

In MRP, the gross requirements of a given component part are calculated from: A. net requirements + amount on-hand. B. gross requirements of the immediate parent. C. planned orders of the end item. D. net requirements of end item. E. planned orders of the immediate parent.

The identification of parent items is called: A. paternity. B. pegging. C. requirement I.D. D. relationship tracking. E. master scheduling.

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system. A. pegging B. planned order release C. net-change D. regenerative E. exception report

An MRP system whose records are updated continuously is referred to as a(n): A. regenerative system. B. batch-type system. C. Plossl-Wright system. D. net-change system. E. gross-change system.

Which is true of a net-change system? A. It is a batch-type system which is updated periodically. B. It is usually run at the beginning of each month. C. The basic production plan is modified to reflect changes as they occur. D. It is used to authorize the execution of planned orders. E. It indicates the amount and timing of future changes.

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? A. pegging B. safety stock C. increased order sizes D. safety time E. low-level coding

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs? A. economic order quantity B. economic run size C. lot-for-lot D. part-period E. all of these

When MRP II systems include feedback, they are known as: A. MRP III. B. enterprise resource planning. C. circular MRP. D. feasible MRP. E. closed loop MRP.

The multiplication process used by MRP to determine lower-level requirements is called: A. time-phasing. B. pegging. C. netting. D. projecting. E. exploding.

_______ is choosing how many to order or make. A. Quantity determination B. Package sizing C. Lot sizing D. Grouping E. Aggregation

Which of the following is not usually necessary in order to have an effective MRP system? A. a computer and software B. an accurate bill of materials C. lot-for-lot ordering D. an up-to-date master schedule E. integrity of file data

The _________ of ERP makes it valuable as a strategic planning tool. A. Internet base B. rapid batch capability C. employee focus D. real-time aspect

An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been: A. material requirements planning. B. capacity requirements planning. C. manufacturing resources planning. D. just-in-time planning. E. multifunctional relationships planning.

Which statement concerning MRP II is false? A. It is basically a computerized system. B. It can handle complex planning and scheduling quickly. C. It involves other functional areas in the production planning process. D. It involves capacity planning. E. It produces a production plan which includes all resources required.

Which of these items would be most likely to have dependent demand? A. Xbox batteries B. toy trains C. flowers D. chocolate chip cookies E. wrist watches

Which of these products would be most likely to have dependent demand? A. refrigerators B. automobile engines C. televisions D. brownies E. automobiles

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called: A. Pegging B. Planned Order Release C. Net Change D. Regenerative E. Exception Report

An MRP system whose records are updated continuously is referred to as a(n): A. Regenerative System B. Batch-Type System C. Plossl-Wright System D. Net-Change System E. Gross-Change System

Which is true of a net-change system? A. It is a batch-type system which is updated periodically B. It is usually run at the beginning of each month C. The basic production plan is modified to reflect changes as they occur D. It is used to authorize the execution of planned orders E. It indicates the amount and timing of future changes.

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? A. Pegging B. Safety Stock C. Increased Order Sizes D. Safety Time E. Low-level Coding

In an MRP master schedule, the planning horizon is often separated into a series of times periods called: A. Pegging B. Lead Times C. Stacked Lead Times D. Time Buckets E. Firm, Fixed and Frozen

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n): A. Assembly Time Chart B. Product Structure Tree C. MRP II D. Pegging E. Gantt Chart

Which one of the following most closely describes net material requirements? A. Gross requirements - amount on-hand - scheduled receipts B. Gross requirements - planned receipts C. Gross requirements - order releases + amount on-hand D. Gross requirements - planned order releases E. Gross requirements - amount on-hand + planned order releases

In MRP, "scheduled receipts" are: A. Identical to "planned-order receipts" B. Identical to "planned-order releases" C. Open orders (that is, ordered before the first time bucket, but not delivered yet) D. "Net Requirements" E. Available to promise inventory

In MRP, the gross requirements of a given component part are calculated from: A. Net requirements + amount on-hand B. Gross requirements of the immediate parent C. Planned orders of the end item D. Net requirements of end item E. Planned orders of the immediate parent

The identification of parent items is called: A. Paternity B. Pegging C. Requirement I.D. D. Relationship Tracking E. Master Scheduling

Which of the following is necessary for successful implementation and operation of MRP? (I) Accurate inventory records (II) Accurate demand forecasts (III) Accurate holding and backordering costs (IV) Accurate bills of materials A. I, II, and IV only B. I, III, and IV only C. I, II, and III only D. I and II only E. I, II, III, and IV

MRP can apply to services, especially when it is focused on: (I) work-in-process inventory (II) finished goods inventory (III) service components (IV) Materials that are part of the service process A. II and IV only B. I and III only C. I, II, and IV only D. I, III, and IV only E. III and IV only

Which of the following most closely describes dependent demand? A. Demand generated by suppliers B. Estimates of demand using regression analysis of independent variables C. Demand for required raw materials D. Demands placed on suppliers by their customers E. Net material requirements

A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is: A. ABC Analysis B. computer-integrated manufacturing C. economic order quantity (EOQ) D. material requirements planning E. project crashing

The output of MRP is: A. gross requirements B. net requirements C. a schedule of requirements for all parts and end items D. inventory reorder points E. economic order quantities and reorder points

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: A. Master Schedule B. Bill of Materials C. Inventory Records D. Assembly Time Chart E. Net Requirements Chart

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the: A. Master Production Schedule B. Bill of Materials C. Inventory Records D. Assembly Time Chart E. Net Requirements Chart