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
answer
A. Product tree
question
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
answer
C. Assemble-to-stock
question
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
answer
C. Assemble-to-order
question
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
answer
A. Fabricate-to-order
question
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
answer
A. Help to compute component usage
question
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
answer
B. The aggregate plan
question
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
answer
B. To determine the amount of materials needed to produce each end item.
question
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
answer
D. Develop schedules specifying when each
component should be ordered or produced.
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. MRP also provides the schedule specifying when each of these items should be ordered or produced.
question
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
answer
A. So they can order the right parts
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. MRP also provides the schedule specifying when each of these items should be ordered or produced.
question
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
answer
B. Determine the number of dependent demand items needed
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. MRP also provides the schedule specifying when each of these items should be ordered or produced. MRP is based on dependent demand. Dependent demand is caused by the demand for a higher-level item.
question
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 random demand from customers
answer
E. Forecasts of random demand from customers
question
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
answer
E. None of these
question
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
answer
A. Bill of materials (BOM) file
question
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
answer
C. Inventory records file
question
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
answer
E. Bill of materials report
question
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
answer
B. Time buckets
The MRP program accesses the status segment of the record according to specific time periods (called time buckets in MRP slang). These records are accessed as needed during the program run.
question
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
answer
E. Peg record file
The MRP program allows the creation of a peg record file either separately or as part of the inventory record file. Pegging requirements allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand.
question
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 parts
D. Labor efficiency
E. Computer errors
answer
C. Scrap parts
The inventory status file is kept up to date by posting inventory transactions as they occur. These changes occur because of stock receipts and disbursements, scrap losses, wrong parts, canceled orders, and so forth.
question
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
answer
E. Lost items
The inventory status file is kept up to date by posting inventory transactions as they occur. These changes occur because of stock receipts and disbursements, scrap losses, wrong parts, canceled orders, and so forth.
question
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
answer
D. Planned order schedules
question
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
answer
B. Exceptions reports
question
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
answer
A. Planned order schedule
question
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
answer
C. Least unit cost
question
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)
answer
E. Warehouse loading factor (WLF)
question
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
answer
B. Minimized carrying costs
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