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The master production schedule (MPS) details how many end items will be produced within specified periods of time.

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Table 13.6. Table 13.6. -Use the information from Table 13.6. If the lot- sizing rule were L4L instead of FOQ = 30 units, what would be the planned order release quantity week 1? A) 0 units B) 10 units C) 20 units D) 40 units -Use the information from Table 13.6. If the lot- sizing rule were L4L instead of FOQ = 30 units, what would be the planned order release quantity week 1?


A) 0 units
B) 10 units
C) 20 units
D) 40 units

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Planned lead time for items manufactured in- house includes


A) setup time.
B) materials handling and waiting times.
C) process time.
D) all the above

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Table 13.8 Sunshine Manufacture produces three products, X, Y, and Z. The production of these end items is controlled by an MRP system. Each end item X is assembled with two components of A and one component of B. Each end item of Y is assembled with two components of C and one component of A, each component of C is manufactured from one unit of B. End item Z is assembled from one unit of D and one unit of C, D is manufactured from one unit of A, and C is manufactured from one unit of B. -Use the information in Table 13.8. If item C has a manufacturing lead time of two weeks and a planned receipt of 65 units is needed in week 4, which of the following statements is TRUE?


A) The planned order release in week 2 for item C is 130 units.
B) The gross requirements for item B in week 2 is 65 units.
C) The gross requirements for item B in week 2 is 130 units.
D) The gross requirements for item B in week 4 are at least 65 units.

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The ability of one piece of software to interact with others is called interoperability.

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Finite capacity scheduling is an algorithm designed to schedule a group of orders appropriately across the entire shop.

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Which of the following statements about MRP II is TRUE?


A) It provides more extensive information than MRP because it is tied to the company's financial system.
B) It incorporates informal systems through the use of expert systems technology.
C) It is computationally faster than regular MRP.
D) It is limited only to aiding order- launching decisions.

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A purchased item is a component received by the company and taken out of inventory.

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A purchased item has one or more components because it comes from a supplier.

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The action notice is a


A) secret document to prompt actions to be taken against some suppliers.
B) computer- generated document that helps make decisions about releasing new orders.
C) document that records the most recent important actions taken in the context of MRP.
D) legal notice served by a customer whose order was delayed.

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A material requirements plan for each component item is generated from the master production schedule and other sources using an MRP explosion.

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An intermediate item is a subassembly.

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In MRP, the inventory record divides the future into time periods called time baskets.

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Table 13.7. Table 13.7. -Use the information from Table 13.7. Which lot sizing rule results in the highest average inventory? A) POQ, P = 3 B) FOQ = 75 C) FOQ = 100 D) L4L -Use the information from Table 13.7. Which lot sizing rule results in the highest average inventory?


A) POQ, P = 3
B) FOQ = 75
C) FOQ = 100
D) L4L

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An enterprise process is a company- wide process that cuts across functional areas, business units, geographic regions, and product lines.

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Discuss both the advantages and disadvantages of using an MRP system, which when working, allows a firm to react to even minor changes in production requirements.

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The advantages are it allows the firm to...

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MRP can be used to best advantage under which one of the following circumstances?

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when the item's dema...

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What are the key inputs to an MRP system?

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The key inputs are t...

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Describe how ERP systems are designed.

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ERP revolves around a single comprehensi...

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Which one of the following statements concerning MRP is TRUE?


A) The scheduled receipts for a parent item are used to calculate the gross requirements for components of that parent.
B) Some of the key inputs to a computerized MRP system are inventory records, updated bills of material, and a valid master production schedule.
C) One of the main prerequisites for implementing an MRP system is to have products with few BOM levels.
D) Benefits of a successful MRP implementation typically include a decrease in the number of inventory turns, and an increase in the number of expediters.

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