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WorksheetsMRP
Total questions: 10
Worksheet time: 18mins
MRP is generally practiced on items with dependent demand.
True
False
The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.
True
False
By convention, the top level in a product structure is designated level 1.
True
False
Consider the following product structure.
If the demand for product A is 50 units, how many units of component E will be needed?
4
100
200
250
300
▶ It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week, when and how large of an order should be placed to meet the requirement of 300 As?
Week 1, 300 As
Week 1, 40 As
Week 5, 40 As
Week 4, 40 As
Week 4, 300 As
Which of the following statements regarding the gross material requirements plan is TRUE?
It shows total demand for an item.
It shows when an item must be ordered from a supplier or when production must be started.
It combines a master production schedule with the time-phased schedule.
It requires several inputs, including an accurate bill of material.
All of the above are true.
An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand. What are the net requirements for N?
150
170
300
320
440
In MRP, system nervousness is caused by:
management's attempt to continually respond to minor changes in production requirements.
the use of the lot-for-lot approach.
management's marking part of the master production schedule as "not to be rescheduled".
the use of phantom bills of material.
management's attempt to evaluate alternative plans before making a decision.
▶Consider the following requirements for a certain product.
▶Beginning inventory = 500 units
▶Setup cost = $500 per setup
▶Lead time = 1 week
▶Holding cost = $3 per unit per week
Calculate the total relevant costs.
3900
5400
1500
500
6000
Enterprise resource planning (ERP):
seldom requires software upgrade or enhancement.
does not integrate well with functional areas other than operations.
is inexpensive to implement.
automates and integrates the majority of business processes.
all of the above
