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