OPS MRP

In MRP, the number of units projected to be available at the beginning of each time period is determined as:

• projected on hand for previous period, plus additions to inventory in the prior period, minus gross requirements in the prior period.

• the amount necessary to cover a shortage.

• scheduled receipts for the prior prior plus gross requirements for the current period

• net requirements for the prior period plus gross requirements for the current period

• planned order receipts for the number of weeks in the future that equals the lead time

Which of the following best describes a net requirements plan?

• an intermediate range plan for the scheduling of families of products

• a schedule showing which products are to be manufactured and in what quantities

• a table that corrects scheduled quantities for inventory on hand

• a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started

• a chart illustrating whether capacity has been exceeded

In MRP, for items at level 1 and below (in other words, all parts or components other than the completed item), gross requirements are determined by

• planned order releases of the parent item(s)

• net requirements minus projected on-hand inventory

• planned order receipts for a period that is the number of lead time weeks in the future

• planned order receipts of the child item(s)

When lot-for-lot ordering is used in MRP, the planned order receipts are equal to

• net requirements for that period

• gross requirements minus projected on-hand inventory, but limited to zero or above

• the planned order releases for the parent item(s)

• projected on-hand inventory for the prior period minus gross requirements

In MRP, net requirements are

• planned order receipts for the item in the period that is the lead time periods in the future

• gross requirements minus projected on-hand inventory, but limited to zero or greater

• planned order releases for the parent item(s)

• prior projected on-hand inventory, plus additions to inventory in the prior period, minus prior period gross requirements

OEM refers to

• makers of subsystems

• original equipment manufacturer

• the lower tier suppliers

• the dealerships

What has been a successful strategy for best practice companies regarding management of lower-tier suppliers?

• determine which items they should directly source themselves and which should be delegated

• delegate selection and purchase of all parts to top tier suppliers

• allow top tier suppliers to choose from the vendor list for some parts and not others

• the OEM purchases all parts and transports them to the top tier supplier

What trend occurred in the past 25 years for original equipment manufacturers relater to the suppliers of parts and sub-systems

• the number of suppliers the OEM dealt with directly was reduced

•  the number of suppliers the OEM dealt with directly increased

• OEMs outsourced all production to third parties

•  OEMs began to primarily produce all of their own parts

What is a criteria suggested for determining which parts/vendor relationships should be maintained by the OEMs themselves?

• retain relationships with those companies for which current employees formerly worked

• retain those that produce the largest number of parts

• retain those that have the most significant impact on cost of goods sold

• retain those that are located closer to the OEMs facilities

A bill of materials is:

• all the parts sold by a supplier of a manufacturer

• the document that indicates how much the supplier should be paid for materials

• a list of all parts sold by a retail store

• a list of parts and sub-systems required to complete a unit of the finished good of a product