question

Supporting information for material requirements planning (MRP) systems includes which of the following I. Bills of material II. Routing File III. Inventory status data

answer

I and III only

question

Material requirements planning (MRP) takes place in the front-end systems of the manufacturing planning and control system

answer

False

question

Material requirements planning (MRP) systems perform which of these functions? I. Translating the overall production plan into detailed steps II Providing information for capacity planning III. Providing information for staffing plans

answer

I and II only

question

In a material requirements planning (MRP) system, gross requirements are

answer

Anticipated future usage or demand for the item during each period

question

In a material requirements planning (MRP) system, the scheduled receipts are

answer

Existing replenishment orders for the item due at the beginning of each period

question

In material requirements planning (MRP) system, the projected available balance is

answer

Current and projected inventory status for the item at the end of the period

question

In a material requirements planning (MRP) system, gross requirements are time phased, which means which of the following

answer

Requirements from all periods are stated on a period-by-period basis

question

The precedent relationship shows

answer

The order in which production steps must be accomplished

question

Front scheduling logic starts each step of the process as late as possible

answer

False

question

Back scheduling logic starts each step of the process as late as possible

answer

True

question

A lot-for-lot order policy generates orders for a fixed quantity; independent of actual requirements

answer

False

question

Processing all material requirements planning (MRP) records in a single computer run is called

answer

Regeneration

question

Safety stock is an inventory buffer of stock over and above requirements

answer

True

question

Safety lead time involves inflating lead times to ensure stock availability

answer

False

question

In a system where timing of reduction is uncertain; it would be more appropriate to utilize

answer

Safety lead time

question

Information concerning the specific source of demand is called

answer

Pegging information

question

A firm planned order (FPO) can be changed by the material requirements planing (MRP) system without human involvement

answer

False

question

A commitment to an eternal supplier (e.g. a purchase order) is represented in the material requirements planning (MRP) system by a

answer

Scheduled receipt

question

Which of the following is not and action commonly taken by an MRP planner? I. Release orders II. Confirm inventory counts on incoming shipments III. Reconcile MRP errors

answer

II only

question

Order launching occurs when a planned order release is in the action bucket

answer

True

question

In a well-functioning material requirements planning (MRP) system, what percent of parts would be expected to require planner review (via exception codes) in any given processing cycle?

answer

10-20%

question

Exception codes are usually generated for which of the following reasons? I.Open order timing/ amount not satisfactory II. Need for management intervention III. Generation of planned orders

answer

I and II only

question

What is the primary consideration when selecting a lot-sizing procedure?

answer

The nature of the net requirements data

question

Material requirements planning (MRP) lot-sizing procedures are specifically designed for situations where demand is continous

answer

False

question

Material requirements planning (MRP) lot-sizing assumptions include which of the following? I. All requirements for a given period are available at the beginning of that period II. Ordering decision occur at regular time intervals III.Demand for future periods can be backordered

answer

I and II only

question

Which of the following are potential sources of uncertainty in a material requirements planning (MRP) system? I. Customer name II. Supply timing III. Demand quantity

answer

II and III only

question

In a situation where the main source of uncertainty is due to timing of customer orders, which buffering strategy would be expected to perform best?

answer

Safety lead time

question

In a situation where the main source of uncertainty is due to quantity of demand, which buffering strategy would be expected to perform best

answer

Safety stock

question

Material requirements planning (MRP) system nervousness can be attributed to which of the following? I. Unplanned demand II. MRP parameter errorss III. Firm planned orders

answer

I and II only

question

Which of the following strategies can be useful in reducing material requirements planning (MRP) system nervousness? I. Introducing system stability through time fences II. Careful use of lot-sizing procedures III. Using firm planned orders

answer

I, II, and III

question

When capacity does not match the plan, which of the following actions can be taken? I. Provide sufficient capacity II. Change the material plan III. Modify capacity calculations

answer

I and II only

question

Which of the following is an objective of capacity planning? I. Building excess capacity for possible future use II. Estimating capacity requirements early enough to take action if necessary III. Execution of the plan to avoid surprises

answer

I and III only

question

Which capacity planning activities are considered short-range planning?

answer

Finite loading and input/output anallysis

question

Resource planning is most closely linked to which manufacturing planning and control (MPC) element?

answer

Sales and operation planning (SOP)

question

Capacity requirements planning (CRP) is most closely linked to which manufacturing planning and control (MPC) element?

answer

Detailed material planning

question

Which capacity planning technique is based on accounting and/ or historical data?

answer

Capacity planning using overall factors (CPOF)

question

The capacity requirements using overall factors (CPOF) planning method is likely to function poorly in a just-in-time (JIT) environment

answer

False

question

The capacity bill planning technique provides more direct linkages to end products than does the capacity requirements using overall factors (CPOF) planning method.

answer

True

question

Under what conditions are both capacity requirements using overall factors (CPOF) and capacity bills likely to return the same capacity requirement results?

answer

When planning for a single product that is produced in a single work center

question

Resource profile planning differs from capacity requirements using overall factors (CPOF) and capacity bills by considering which of the following?

answer

Projected workload in individual work centers

question

In which of the following ways does capacity requirements planning (CRP) differ from rough-cut capacity planning techniques? I. CRP uses a time-phased approach II. CRP considers service part demand III. CRP considers standard lot sizes

answer

I and II only

question

Capacity requirements planning (CRP) ignores current finished goods and work-in-process inventory levels.

answer

False

question

Which of theses planning techniques requires the most computing resources?

answer

Capacity requirements planning (CRP)

question

Which of the following are benefits of simultaneous planning of capacity and materials? I Fewer computer resources required II. Better utilization of existing capacity III. Eliminates the need to expand capacity

answer

II only

question

Finite scheduling techniques always assign jobs to available capacity on a first-come, first- served basis.

answer

False

question

The horizontal loading scheduling approach is more likely to result in higher capacity utilization.

answer

True

question

The vertical loading scheduling approach is more likely to result in more complete jobs at the end of the planning cycle.

answer

True

question

Advanced production scheduling (APS) system time estimates, it is desirable to overstate the time estimate to allow some slack in the system.

answer

False

question

Input/output control compares

answer

Planned inputs and outputs to actual values

question

According to the theory of constraints (TOC), bottleneck work centers should be managed identically to non- bottlenecks.

answer

False

question

According to the theory of constraints (TOC), which of these conditions is most desirable? I. 100% utilization of bottleneck work centers II. 100% utilization of non-bottleneck work centers III. Less than 100% utilization of bottleneck work centers

answer

I only

question

Which of the following are useful measures of capacity? I. Machine- hours II. Labor- hours III. Elapsed time

answer

I and II only

question

Which of the following are capacities that may need to be managed? I. Direct labor II. Inspection III. Engineering

answer

I, II, and III

question

Rough-cut planning (CRP) can be used in firms that don't utilize material requirements planning (MRP).

answer

False

question

Input/output control is especially important at a firm that uses just-in-time (JIT) systems.

answer

False

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