Question 1

Identify the several lot-sizing algorithms used in MRP. Provide at least one advantage and one disadvantage of each.

Accepted Answer

The answer of Identify the several lot-sizing algorithms used in...

Question 2

You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given lot sizing? Answer in a well-developed paragraph.

Accepted Answer

Lot sizing is important because, at the ...

Question 3

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Accepted Answer

A) True 
 B)False

Question 4

Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 250 units in week 5 and 500 units in week 6. Develop the MRP tables for each item for a 6-week planning period. Use the lot-for-lot lot-sizing rule for all units except L which requires lots of 24.  $$\begin{array} { | c | c | c | c | } 
\hline \text { Item } & \text { Lead Time } & \text { Quantity on Hand } & \text { Scheduled receipts } \
\hline \mathrm { J } & 1 & 0 & \
\hline \mathrm { K } & 1 & 200 & 50 \text { in week 2 } \
\hline \mathrm { L } & 1 & 0 & \text { 48 in week 1 } \
\hline \mathrm { M } & 2 & 75 & 10 \text { in week 1 } \
\hline
\end{array}$$

Accepted Answer

Summary of costs: LFL = $1,6...

Question 5

For the lot-sizing technique known as lot-for-lot to be appropriate

Accepted Answer

A)   future demand should be known for several weeks.
B)   setup cost should be relatively small.
C)   annual volume should be rather low.
D)   item unit cost should be relatively small.
E)   the independent demand rate should be very stable.F) B) and D)
G) B) and E)

Question 6

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Accepted Answer

A)   lot-for-lot
B)   EOQ
C)   part-period balancing
D)   the Wagner-Whitin algorithm
E)   quantity discountingF) A) and C)
G) A) and E)

Question 7

Which of the following statements is true about the MRP plan when using lot-for-lot ordering?

Accepted Answer

A)   The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
B)   The quantity of gross requirements for a child item is equal to the quantity of planned order release(s)  multiplied by the number of child items used in the parent assembly.
C)   The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
D)   The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
E)   The quantity of gross requirements for a parent item is equal to the sum of net requirements for all child items.F) B) and D)
G) C) and E)

Question 8

The extension of MRP which extends to resources such as labour hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is

Accepted Answer

A)   MRP II.
B)   enterprise resource planning.
C)   the master production schedule.
D)   closed-loop MRP.
E)   not yet technically possible.F) A) and E)
G) B) and D)

Question 9

Distortion in MRP systems can be minimized when safety stock is held at the

Accepted Answer

A)   purchased component or raw material level.
B)   work-in-process level.
C)   finished goods level.
D)   A and B.
E)   A and C.F) B) and C)
G) B) and E)

Question 10

Explain the difference between a gross requirements plan and a net requirements plan.

Accepted Answer

A gross requirements plan multiplies eac...

Question 11

A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Week } & 1 & 2 & 3 & 4 \
\hline \text { Requirements } & 10 & 30 & 40 & 20 \
\hline
\end{array}$$

Accepted Answer

Lot-for-lot will cost $400 × 4 = $1,600 ...

Question 12

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Accepted Answer

A)   .005.
B)   60.
C)   72.
D)   100.
E)   200.F) A) and B)
G) A) and C)

Question 13

Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule.  $$\begin{array} { | c | c | c | c | } 
\hline \text { Item } & \text { Lead Time } & \text { Quantity on Hand } & \text { Scheduled receipts } \
\hline \mathrm { J } & 1 & 0 & \
\hline \mathrm { K } & 2 & 20 & 30 \text { in week 2 } \
\hline \mathrm { L } & 2 & 0 & \
\hline \mathrm { M } & 1 & 20 & 10 \text { in week 1 } \
\hline
\end{array}$$

Accepted Answer

The answer of Consider the bill of material for Product...

Question 14

Distribution resource planning (DRP)  is

Accepted Answer

A)   a transportation plan to ship materials to warehouses.
B)   a time-phased stock replenishment plan for all levels of a distribution network.
C)   a shipping plan from a central warehouse to retail warehouses.
D)   material requirements planning with feedback loop from distribution centres.
E)   a material requirements planning package used exclusively by warehouses.F) C) and E)
G) B) and E)

Question 15

The minimum record accuracy required for successful MRP is approximately

Accepted Answer

A)   lower than 90%.
B)   90%.
C)   95%.
D)   97%.
E)   99%.F) None of the above
G) B) and E)

Question 16

All of the following are advantages of enterprise resource planning (ERP)  except it

Accepted Answer

A)   creates commonality of databases.
B)   increases communications and collaboration worldwide.
C)   helps integrate multiple sites and business units.
D)   requires major changes in the company and its processes to implement.
E)   can provide a strategic advantage over competitors.F) B) and E)
G) C) and E)

Question 17

Enterprise resource planning (ERP)

Accepted Answer

A)   seldom requires software upgrade or enhancement.
B)   does not integrate well with functional areas other than operations.
C)   is inexpensive to implement.
D)   automates and integrates the majority of business processes.
E)   is relatively easy to implement.F) B) and E)
G) B) and C)

Question 18

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Accepted Answer

The answer of ________ are a way of allowing a...

Question 19

Firms making many different final products use ________ to facilitate production scheduling.

Accepted Answer

A)   planning bills
B)   modular bills
C)   phantom bills
D)   overdue bills
E)   demand billsF) C) and E)
G) A) and B)

Question 20

Describe finite capacity scheduling. How is it more realistic than MRP?

Accepted Answer

FCS provides the precise scheduling need...

Exam 14: Material Requirements Planning Mrp and Erp

The extension of MRP which extends to resources such as labour hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is

Correct Answer
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Correct Answer
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Summary of costs: LFL = $1,6...
View Answer

Correct Answer
verified

The minimum record accuracy required for successful MRP is approximately

Correct Answer
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Explain the difference between a gross requirements plan and a net requirements plan.

Correct Answer
verified
A gross requirements plan multiplies eac...
View Answer

All of the following are advantages of enterprise resource planning (ERP) except it

Correct Answer
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Describe finite capacity scheduling. How is it more realistic than MRP?

Correct Answer
verified
FCS provides the precise scheduling need...
View Answer

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Correct Answer
verified

Distribution resource planning (DRP) is

Correct Answer
verified

Which of the following statements is true about the MRP plan when using lot-for-lot ordering?

Correct Answer
verified

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Correct Answer
verified

You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given lot sizing? Answer in a well-developed paragraph.

Correct Answer
verified
Lot sizing is important because, at the ...
View Answer

Enterprise resource planning (ERP)

Correct Answer
verified

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Correct Answer
verified

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Correct Answer
verified

Identify the several lot-sizing algorithms used in MRP. Provide at least one advantage and one disadvantage of each.

Correct Answer
verified

Firms making many different final products use ________ to facilitate production scheduling.

Correct Answer
verified

A product has the following gross requirements. Which is cheaper, lot-for-lot or EOQ lot-sizing? $\begin{array} { | l | l | l | l | l | } \hline \text { Week } & 1 & 2 & 3 & 4 \\\hline \text { Requirements } & 10 & 30 & 40 & 20 \\\hline\end{array}$

Correct Answer
verified
Lot-for-lot will cost $400 × 4 = $1,600 ...
View Answer

Distortion in MRP systems can be minimized when safety stock is held at the

Correct Answer
verified

For the lot-sizing technique known as lot-for-lot to be appropriate

Correct Answer
verified

Exam 14: Material Requirements Planning Mrp and Erp

The extension of MRP which extends to resources such as labour hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is

Correct AnswerverifiedShow Answer

Correct Answerverified Summary of costs: LFL = $1,6...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The minimum record accuracy required for successful MRP is approximately

Correct AnswerverifiedShow Answer

Explain the difference between a gross requirements plan and a net requirements plan.

Correct AnswerverifiedA gross requirements plan multiplies eac...View AnswerShow Answer

All of the following are advantages of enterprise resource planning (ERP) except it

Correct AnswerverifiedShow Answer

Describe finite capacity scheduling. How is it more realistic than MRP?

Correct AnswerverifiedFCS provides the precise scheduling need...View AnswerShow Answer

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Correct AnswerverifiedShow Answer

Distribution resource planning (DRP) is

Correct AnswerverifiedShow Answer

Which of the following statements is true about the MRP plan when using lot-for-lot ordering?

Correct AnswerverifiedShow Answer

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Correct AnswerverifiedShow Answer

You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given lot sizing? Answer in a well-developed paragraph.

Correct AnswerverifiedLot sizing is important because, at the ...View AnswerShow Answer

Enterprise resource planning (ERP)

Correct AnswerverifiedShow Answer

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

Correct AnswerverifiedShow Answer

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Correct AnswerverifiedShow Answer

Identify the several lot-sizing algorithms used in MRP. Provide at least one advantage and one disadvantage of each.

Correct AnswerverifiedShow Answer

Firms making many different final products use ________ to facilitate production scheduling.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedLot-for-lot will cost $400 × 4 = $1,600 ...View AnswerShow Answer

Distortion in MRP systems can be minimized when safety stock is held at the

Correct AnswerverifiedShow Answer

For the lot-sizing technique known as lot-for-lot to be appropriate

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Summary of costs: LFL = $1,6...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A gross requirements plan multiplies eac...
View Answer

Correct Answer
verified

Correct Answer
verified
FCS provides the precise scheduling need...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Lot sizing is important because, at the ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Lot-for-lot will cost $400 × 4 = $1,600 ...
View Answer

Correct Answer
verified

Correct Answer
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