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Describe the tactics for load smoothing in MRP.

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Overlapping-sends pieces to the second o...

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A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified?


A) phantom bill
B) component bill
C) modular bill
D) low-level bill
E) planning bill

F) C) and D)
G) A) and E)

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Planning bills of material are bills of material for "kits" of expensive items such as CPUs and motherboards.

A) True
B) False

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The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

A) True
B) False

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Audrey Ross, operations manager for BCD Technologies, must schedule work for the next five days. Each unit takes 20 minutes to process. Available capacity is 8 hours per day. The production order quantities are 18, 28, 38, 16, and 20 for Monday through Friday, respectively. What should be the plan for Wednesday?


A) Move 2 units to Monday, 8 units to Thursday, and 4 units to Friday.
B) Move 8 units to Monday, 8 units to Thursday.
C) Move 4 units to Tuesday, and 10 units to Thursday.
D) Move 2 units to Tuesday, 6 units to Thursday, and 6 units to Friday.
E) Move 8 units to Thursday, and 4 units to Friday.

F) None of the above
G) A) and B)

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A material requirements plan contains information with regard to all of the following EXCEPT:


A) quantities and required delivery dates of all subassemblies.
B) quantities and required delivery dates of final products.
C) the capacity needed to provide the projected output rate.
D) inventory on hand for each final product.
E) inventory on hand for each subassembly.

F) B) and E)
G) None of the above

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DRP pushes inventory through the system.

A) True
B) False

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If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G.

A) True
B) False

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Capacity planning in closed-loop MRP:


A) utilizes feedback about workload from each work center.
B) may make use of resource requirements profiles (load reports) .
C) may smooth work center loads with such tactics as overlapping and lot splitting.
D) does not add capacity, but rather seeks effective use of existing capacity.
E) All of these are true.

F) A) and D)
G) A) and C)

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


A) lot-for-lot
B) EOQ
C) POQ
D) the Wagner-Whitin algorithm
E) All of these are appropriate for the situation.

F) All of the above
G) D) and E)

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

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A gross requirements plan is a schedule ...

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________ strategically alters lead times and precisely places safety stock within the BOM structure to improve MRP performance.

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Demand-dri...

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In MRP, the number of units projected to be available at the beginning of each time period refers to:


A) net requirements.
B) scheduled receipts.
C) planned order releases.
D) projected on hand.
E) the amount necessary to cover a shortage.

F) A) and E)
G) A) and C)

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A manufacturing company is trying to determine the cost of materials used to produce an A. If Ds cost $3 and Fs cost $5, how much does it cost to produce an A (in D and F materials only)? A manufacturing company is trying to determine the cost of materials used to produce an A. If Ds cost $3 and Fs cost $5, how much does it cost to produce an A (in D and F materials only)?

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Using the explosion shows that...

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By convention, what is the top level in a product structure?


A) level 0
B) level 1
C) level T
D) level 10
E) level 100

F) A) and E)
G) A) and C)

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Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 1, and 2 weeks respectively. Currently there are 2 Bs and 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1. If 20 As are needed during week 3, can the order be completed (it is the start of week 0 currently)?

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To produce 20 As requires 40 B...

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Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.

A) True
B) False

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________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

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Net material require...

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Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.

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material r...

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The time-phased product structure, unlike the bill of material, adds the concept of lead times.

A) True
B) False

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