Chapter Quiz

(See related pages)

1
Which of the following statements concerning MRP systems is false?
MRP is a computer-based inventory planning and control information system
designed to handle production scheduling of dependent-demand inventories for batch
A) systems.
MRP is designed to determine how much is needed and when the need occurs for
items that experience dependent demand (components, subassemblies, parts, and
B) raw materials).

C)

D)

A Type II MRP system includes a check of available capacity and a feedback loop to
the master schedule if capacity is insufficient.
MRP systems are based upon a replenishment philosophy, which indicates that
material should be ordered when stock runs low.
The ordering philosophy of MRP may result in "lumpy" demand for component parts.

E)

2
As defined by Joseph Orlicky, the three principal functions of MRP are:
Managing inventories, establishing priorities, and managing capacities
A)
Managing inventories, establishing order priorities, and scheduling slack resources
B)
Managing inventories, establishing order priorities, and job dispatching
C)

D)

E)

Managing activity time/cost tradeoffs, establishing priorities, and managing

capacities
Managing activity time/cost tradeoffs, establishing priorities, and scheduling slack
resources

3
Three primary inputs fed into the MRP computer program are:

A)

Master production schedule (MPS), bills of material file, and capacity requirements
plan
Capacity requirements plan, planned order schedule, and inventory status file

B)
MPS, inventory records file, and bills of material file

C)
MPS, capacity requirements plan, and inventory records file
D)
MPS, planned order schedule, and inventory records file
E)

4
A Type II MRP System is also known as a _________________
Material Resource Production System
A)
Manufacturing Requirement Production System
B)
Manufacturing Resource Planning System
C)
Master Resource Planning System
D)
Master Requirement Production System
E)

5
Which one of the following statements is incorrect about MRP systems?
MRP systems are useful in managing dependent demand type of inventories.
A)

B)

MRP systems utilize requirements type of ordering philosophy while managing

inventories.
MRP systems are best suited for managing lumpy demand patterns.

C)
The ABC classification principle is used for managing inventories in MRP systems.
D)
None of the above
E)

6
Correctly complete the following statement. A bill of materials __________.

A)

Is a structured list of all the materials or parts needed to produce one unit of a
finished product.

Is rarely revised once established.

B)

C)

D)

May exist in multiple versions for different functional disciplines throughout an

organization.
Will lead to sufficient MRP system performance as long as the "threshold degree" of
accuracy of approximately 75 percent is met
Is used as an input for dispatching decisions on the shop floor

E)

7
In theory, safety stock should not be necessary within an MRP system due to demand
certainty. In practice, however, some safety stock may be maintained. Which of the
following statements about safety stock within an MRP system is false?
When maintained, safety stock is normally held for end items rather than lower-level
items in the bill-of-material because end items experience uncertain independent
A) demand.
When maintained, safety stock is normally held for end items rather than lower level
items in the bill-of-material because at that level less of it is required for the same
B) degree of protection against demand uncertainty.

C)

D)

Carrying safety stock may represent a common solution for variable production scrap
rates.
Safety lead time may be a more cost-effective solution than safety stock for
purchased materials that are subject to variable delivery times.
Safety capacity as an alternative to safety stock is widely applied in industry.

E)

8
Which of the following is not an element of a successful MRP system?
implementation planning
A)
adequate customer support
B)
available data
C)
management support
D)
user knowledge
E)

9
The master production schedule for two products, A and B, is shown below. To
manufacture item A, two units of component C are required. To manufacture item B, four
units of component C are required. The inventory balance for C is 10 units at the start of
week 1. Using this information, determine the gross requirements for component C to
start week 1.

20 units
A)
15 units
B)
38 units
C)
28 units
D)
48 units
E)

1
0

Using a lot-for-lot ordering strategy for the following item, what is amount of net
requirements in week 3? (Note: use a lead time of one week, the gross requirements and
scheduled receipts depicted below, and assume you begin with 100 units in inventory.)

40 units
A)
115 units
B)
50 units
C)
155 units
D)
75 units
E)

1
1

End item A requires three component parts: B, C and D. The bill of material indicates that
for each completed A, one unit of B, 2 units of C, and 1 unit of D are required. Current
inventory for the four items is as follows: There are 15 As, 40 Bs, 50 Cs and 15 Ds in
stock. If the lead time for all items is one week and there are no scheduled receipts for
any item, how many units of product A can be delivered to customers at the start of next
week (week 2) if you realize now that the bill of materials for A is wrong. You now realize
it takes 2 units of B to make 1 finished unit of A (not the 1 unit as previously thought)?
10 units
A)
25 units
B)
30 units
C)
35 units
D)
40 units
E)

1
2

Which one of the following is not an element of a MRP system?

Inventory Record
A)
Shop Floor Control
B)
Capacity Planning System
C)
Master Scheduling
D)
Sales and Operations Planning System
E)

1
3

The Type I MRP system considers the capacity availability and shop floor control while
managing the inventory in a factory.
True
A)

False
B)

1
4

MRP systems require almost no safety stock of components to be carried because of a

predictable demand pattern.
True
A)
False
B)

1
5

The master schedule, the capacity plan, and inventory records are used as inputs for the
part explosion process.
True
A)
False
B)

1
6

Capacity Planning Systems are also referred to as Manufacturing Execution Systems

(MES).
True
A)
False
B)

1
7

An ERP system could be used by all of the functional areas of a business.

True
A)
False
B)