Question 1

The identification of parent items that have generated a given set of material requirements for an item is called

Accepted Answer

A)  paternity.
B)  pegging.
C)  requirement I.D.
D)  relationship tracking.
E)  master scheduling.

Question 2

Comparing known and expected capacity requirements with projected capacity availability is the job of

Accepted Answer

A)  planned releases.
B)  load reports.
C)  lot sizing.
D)  work loading.
E)  time fencing.

Question 3

Which of these products would be most likely to have dependent demand?

Accepted Answer

A)  refrigerators
B)  automobile engines
C)  televisions
D)  brownies
E)  Automobiles

Question 4

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?

Accepted Answer

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

Question 5

The inventory records contain information on the status of each item by time period.

Accepted Answer

A) True 
 B)False

Question 6

ERP implementation probably will not require

Accepted Answer

A)  cross-functional teams.
B)  just a few weeks to install.
C)  intensive training.
D)  high funding for both initial cost and maintenance.
E)  upgrades after installation.

Question 7

Which statement concerning MRP II is false?

Accepted Answer

A)  It has material requirements planning at it heart.
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 connects all parts of a firm and key portions of its supply chain to a single database for information sharing.

Question 8

_____ is important and absolutely essential for a successful MRP system.

Accepted Answer

A)  Management
B)  Completeness
C)  Accuracy
D)  Integrity
E)  Forecasting

Question 9

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

Accepted Answer

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

Question 10

MRP is used within MRP II systems.

Accepted Answer

A) True 
 B)False

Question 11

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Accepted Answer

A) True 
 B)False

Question 12

Capacity requirements planning helps managers reconcile __________ with __________.

Accepted Answer

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

Question 13

A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

Accepted Answer

A) True 
 B)False

Question 14

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a common problem associated with MRP systems?

Accepted Answer

A)  Products produced differently
B)  Assumption of constant lead times
C)  Allocation of production time
D)  Failure to alter bill of materials when customizing a product
E)  Bill of materials does not match products produced

Question 16

MRP output reports are divided into two main groups, daily and weekly.

Accepted Answer

A) True 
 B)False

Question 17

MRP works best if the inventory items have dependent demand.

Accepted Answer

A) True 
 B)False

Question 18

A net-change MRP system is one that is updated periodically but not less frequently than once a week.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

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

Question 20

In a master schedule, the planning horizon is often separated into a series of time periods called

Accepted Answer

A)  pegging.
B)  lead times.
C)  stacked lead times.
D)  time buckets.
E)  firm, fixed, and frozen.

Exam 13: MRP and ERP

MRP output reports are divided into two main groups, daily and weekly.

Correct AnswerverifiedShow Answer

MRP is used within MRP II systems.

Correct AnswerverifiedShow Answer

The inventory records contain information on the status of each item by time period.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of these products would be most likely to have dependent demand?

Correct AnswerverifiedShow Answer

A net-change MRP system is one that is updated periodically but not less frequently than once a week.

Correct AnswerverifiedShow Answer

Which statement concerning MRP II is false?

Correct AnswerverifiedShow Answer

The identification of parent items that have generated a given set of material requirements for an item is called

Correct AnswerverifiedShow Answer

In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper-level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.

Correct AnswerverifiedShow Answer

The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

Correct AnswerverifiedShow Answer

In a master schedule, the planning horizon is often separated into a series of time periods called

Correct AnswerverifiedShow Answer

Which of the following is not a common problem associated with MRP systems?

Correct AnswerverifiedShow Answer

ERP implementation probably will not require

Correct AnswerverifiedShow Answer

MRP works best if the inventory items have dependent demand.

Correct AnswerverifiedShow Answer

A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

Correct AnswerverifiedShow Answer

_____ is important and absolutely essential for a successful MRP system.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Capacity requirements planning helps managers reconcile __________ with __________.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Comparing known and expected capacity requirements with projected capacity availability is the job of

Correct AnswerverifiedShow Answer

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Capacity requirements planning helps managers reconcile with .

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