Which of the following is an input to the master production schedule (MPS)?
The bill of materials
Inventory records file
The aggregate plan
Planned order schedules
The exception report
The three main inputs to an MRP system are the bill of materials, the master schedule and
the inventory records file.
True
False
A master production schedule is an essential input to a material requirements planning
(MRP) system.
True
False
A BOM file is called which of the following?
Stocking plan
Time bucket schedule
Product structure tree
Production parts plan
Inventory usage record
Which of the following is the net requirement using an MRP program if the gross
requirement is 1,250 and the inventory on hand is 50?
1,200
1,300
1,150
2,450
None of the above
MRP systems seek to achieve which of the following?
Improve on JIT methods
Provide a yardstick for future improvements
Relieve capacity bottlenecks
Determine the number of dependent demand items needed
Minimize lot sizes
The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the
amount of product that is needed each time period with none carried over into future
periods.
True
False
The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into account
setup costs and capacity limitations.
True
False
Computing the quantity of each component that goes into a finished product requires
expanding (or exploding) each item in a product structure file and summing at all levels.
True
False
The master production schedule a master production schedule, which states the number
of items to be produced during specific time periods.
True
False
Which of the following is considered a primary report in an MRP system?
Exception reports
Performance reports
Planning reports
Cycle counting reports
Planned order schedules
A lot-for-lot (L4L) lot sizing technique does not take into account setup costs or capacity
limitations.
True
False
When implemented correctly, MRP links all areas of the business.
True
False
Which of the following is an input file necessary to run an MRP system?
Bill of materials (BOM) file
Planned-order schedules
Purchasing contracts
Exception reports
Quality management report
Which of the following is the planned-order release using an MRP program if the gross
requirement is 670 and the inventory on hand is 600?
670
600
530
70
None of the above
An output of MRP is a bill of materials (BOM) file.
True
False
Generally, determining lot sizes in MRP systems is simple.
True
False
Enterprise resource planning (ERP) is a computer system that integrates application
programs in accounting, sales, manufacturing, and the other functions in a firm.
True
False
The economic order quantity (EOQ) lot sizing technique uses the "square root formula"
to balance set-up cost, carrying cost and cost of stock-outs.
True
False
A necessary input to the material requirements planning (MRP) system is an inventory
records file.
True
False
Which of the following is the planned-order release using an MRP program if the gross
requirement is 5,000 and the inventory on hand is 1,200?
5,000
4,500
3,800
1,200
None of the above
A BOM file is often called a product structure file or product tree because it enumerates
all of the component parts of the end item product.
True
False
The economic order quantity (EOQ) lot sizing technique uses the "square root formula"
to balance set-up cost and carrying cost.
True
False
MRP stands for Material Requirements Planning.
True
False
MRP provides the schedule specifying when each part and component of an end item
should be ordered or produced.
True
False
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which
of the following?
Minimized quality problems
A just in time management philosophy
Minimized set-up costs
Minimized carrying costs
A consistent lag of supply behind demand
MRP stands for Manufacturing Requirements Planning.
True
False
Which of the following is one of the main purposes of a MRP system?
To determine the amount of materials needed to produce each end item.
Increase inventory accuracy.
Stimulate the work force.
Decrease labor requirements.
Educate personnel in basic work rules.
Which of the following is a dynamic lot-sizing technique that adds ordering and
inventory carrying cost for each trial lot size and divides by the number of units in each
lot size, picking the lot size with the lowest unit cost?
Lot-for-lot
Inventory item averaging
Least total cost
Least unit cost
Economic order quantity
Enterprise Resource Planning (ERP) evolved from Materials Requirements Planning
(MRP).
True
False
Which of the following is the net requirement using an MRP program if the gross
requirement is 1,000 and the inventory on hand is 500?
1,000
400
950
350
500
MRP is most valuable in industries where a number of products are made in batches
using the same productive equipment.
True
False
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per
order is $50, which of the following is the EOQ lot size?
350
230
247
185
78
Lot-for-lot (L4L) is the most common lot sizing technique.
True
False
Which of the following is not a lot sizing technique used in MRP systems?
Least total cost (LTC)
Lot-for-lot (L4L)
Warehouse loading factor (WLF)
Economic order quantity (EOQ)
Least unit cost (LUC)
A necessary input to the material requirements planning (MRP) system is an inventory
records file.
True
False