Resource Planning

Which of the following is true about MRP Systems?

• Based on independent demand

• Lot sizing is EOQ

• Demand pattern is random

• Objective is to meet manufacturing needs

• Order philosophy is replenishment

Which MRP system input element specifies how many and when the firm plans to build each end item?

• Inventory records file

• Bills-of-material

• Master production schedule

• Capacity planning

• None of the above

The purposes of a basic MRP system include:

• To control inventory levels

• To prioritize the need for an item

• Plan capacity to load the production system

• B and C

• A, B, and C

Which of the following is not an advantage of MRP?

• Visibility of future inventory orders

• Reduced inventory

• Reduced idle time

• MRP is flexible - easy to veer away from the schedule if need arises

• Better response to market demand

Which of the following most closely describes net material requirements?

• Gross requirements – Scheduled receipts

• Gross requirements – Projected available balance at the end of previous period + Scheduled receipts

• Gross requirements – Projected available balance at the end of previous period - Scheduled receipts

• Gross requirements – Planned order releases

• None of the above

Planned order receipts and planned order releases in an MRP system will:

• Always be equal for all components

• Will sometimes be equal for components

• Will sometimes be equal to the net requirements

• B and C

• A and C

An MRP system that has information feedback from its module output is termed as open-loop MRP system.

• True

• False

JIT is best suited to repetitive manufacturing, whereas MRP is used in everything from custom job shops to assembly-line production.

• True

• False

Lot-sizing techniques include:

• Lot-for-lot

• Economic order quantity

• Least total cost

• Least unit cost

• A, B, C, and D

In the Lot-for-Lot lot sizing rule:

• The holding cost will be the lowest since no excess inventory is ever carried

• Planned order will equal net requirements

• It does not use setup cost in its calculations

• It will cost less than economic order quantity

• A, B and C