MRP Crash Course Quiz

What's the purpose of this crashcourse?

• Align terms

• Keep MRP Simple

• Learn from each other experiences

• Create an open forum for learning and growth

What is the key driver of the supply chain?

• Customer demand

• Profitability

• Cash flow

• Internal forces

What are the different types of demand patterns?

• Trend, seasonality, and cycle

• Trend and seasonality

• Seasonality and cycle

• Trend and cycle

What is the difference between independent and dependent demand?

• Independent demand is directly related to the demand of other items, while dependent demand is not

• Independent demand is forecasted, while dependent demand is calculated

• Independent demand is derived from a bill of materials, while dependent demand is not

• Dependent demand is out of the control of the company, while Independent demand is not

What is safety stock?

• The quantity of stock planned to be in inventory to protect against fluctuation in demand or supply

• The quantity of stock planned to be in inventory to maximize profitability

• The quantity of stock planned to be in inventory to minimize transportation cost

• The quantity of stock planned to be in inventory to meet service levels

What is a bill of materials (BOM)?

• A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly

• A listing of all the finished goods that go into a parent assembly

• A listing of all the components that go into a parent assembly, excluding raw materials

• A listing of all the raw materials that go into a parent assembly, excluding components

What is the lot-size decision rule called when you order exactly what is needed?

• Lot-4-Lot (L4L)

• Fixed Order Quantity (FOQ)

• Economic Order Quantity (EOQ)

• Safety stock

What is the purpose of material requirements planning (MRP)?

• To calculate gross requirements and determine net requirements

• To minimize warehouse and transportation cost

• To meet service levels and minimize lead time

• To determine the order quantity and order timing

What is the formula for calculating safety stock?

• Standard Deviation or Mean Absolute Deviation x Appropriate Service Factor

• Standard Deviation or Mean Absolute Deviation / Appropriate Service Factor

• Standard Deviation or Mean Absolute Deviation + Appropriate Service Factor

• Standard Deviation or Mean Absolute Deviation - Appropriate Service Factor

What is the purpose of a bill of materials (BOM)?

• To determine the items for which purchase requisitions and production orders must be released

• To determine the order quantity and order timing

• To calculate gross requirements and determine net requirements

• To minimize warehouse and transportation cost