If the demand also for product A is 50 units, what will certainly be the gross necessity for component E?






e (Dependent inventory model needs, moderate) AACSB: Analytic Skills

56.Given the following bill of material

If the demand for product A is 50 units, what will be the gross requirement for component E?






a (Dependent inventory version needs, moderate) AACSB: Analytic Skills



57.When security stock is considered absolutely important, the usual plan is to construct it right into which category of the MRP logic?

a.Gross Requirements

b.Scheduled Receipts

c.Projected On Hand

d.Net Requirements

e.Planned Order Receipts

c (MRP structure, moderate)

58.Given the adhering to bill of material

If the demand also for product A is 30 units, and tbelow are 10 systems of B on hand also and none of C, how many type of systems of component D will certainly be needed?






c (Dependent inventory model demands, difficult) AACSB: Analytic Skills

59.Low level coding indicates that

a.a last item has just a couple of levels in the BOM structure

b.it is the code for the lowest level in the BOM structure

c.a component item is coded at the lowest level at which it appears in the BOM structure

d.the peak level of the BOM is listed below level zero and that BOMs are not arranged approximately the finimelted product

e.namong the above

c (Dependent inventory model demands, moderate)


60.Each X requires 2 of component Y; each Y calls for 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is _____ weeks.

You are watching: Which of the following best describes a gross material requirements plan?





e.cannot be determined

c (MRP framework, moderate) AACSB: Analytic Skills

61.A product requirements plan includes indevelopment with regard to every one of the complying with except

a.quantities and compelled distribution dates of all subassemblies

b.amounts and required shipment dates of last products

c.the capacity required to carry out the projected output rate

d.inventory on hand for each final product

e.inventory on hand also for each subassembly

c (MRP framework, moderate)

62.Each R calls for 2 of component S and also 1 of component T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is _____ days.





e.cannot be determined

c (MRP structure, moderate) AACSB: Analytic Skills

63.Each R needs 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is ______ weeks.






b (MRP structure, moderate) AACSB: Analytic Skills

64.Which of the complying with best describes a gross material needs plan?

a.a schedule that mirrors complete demand also for an item, and also once it should be ordered from a supplier or once manufacturing must be started

b.an intermediate selection plan for the scheduling of families of products

c.a chart showing whether capacity has actually been exceeded

d.a table that corrects booked amounts for inventory on hand

e.a schedule showing which assets are to be manufactured and also in what quantities

a (MRP framework, moderate)


65.Which of the following statements about the gross product needs arrangement is true?

a.It reflects complete demand also for a things.

b.It shows once an item should be ordered from a supplier or when production must be began.

c.It combines a grasp manufacturing schedule via the time-phased schedule.

d.It requires a number of inputs, consisting of a precise bill of product.

e.All of the over are true.

e (MRP framework, moderate)

66.The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand also. Each M calls for 4 of Component N. There are 20 devices of N on hand. The net needs for N are






c (MRP framework, moderate) AACSB: Analytic Skills

67.The MPS calls for 50 units of Product A and 60 of B. There are presently 25 of Product B on hand also. Each A needs 2 of Part C; each B requires 5 of C. There are 160 units of C easily accessible. The net demands for C are






a (MRP structure, difficult) AACSB: Analytic Skills

68.The MPS calls for 110 devices of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B easily accessible. The net needs for B are






c (MRP framework, moderate) AACSB: Analytic Skills

69.In MRP record calculations, the appearance of an unfavorable worth for the gross demands of an finish item in a particular time bucket

a.signals the should purchase that end item in that period

b.suggests that value was booked by the MPS

c.signals the need for a negative planned order receipt in that period

d.is impossible

e.All of the above are true.

d (MRP framework, moderate)


70.The number of systems projected to be available at the finish of each time duration refers to

a.net requirements

b.scheduled receipts

c.the projected intake of the item

d.the amount projected to be on hand

e.the amount crucial to cover a shortage

d (MRP structure, moderate)

71.Linking a component need through the parent component that led to the necessity is described as

a.net needs planning

b.a time fence




c (MRP administration, moderate)

72.In MRP, system nervousness is led to by

a.management"s attempt to continually respond to minor changes in manufacturing requirements

b.the usage of the lot-for-lot approach

c.management"s marking part of the master production schedule as "not to be rescheduled"

d.the usage of phantom bills of material

e.management"s attempt to evaluate alternative plans before making a decision

a (MRP management, moderate)

73.One of the devices that is specifically valuable in reducing the system nervousness in the MRP system is (are)

a.modular bills

b.time phasing

c.time fences

d.lot sizing

e.closed loop system

c (MRP management, moderate)

74.Distortion in MRP units have the right to be decreased as soon as security stock is organized at the

a.purchased component or raw product level

b.work-in-process level

c.finimelted products level

d.a and also b

e.a and c

e (MRP framework, difficult)

75.Material requirements plans specify

a.the amounts of the product households that should be produced

b.the amount and also timing of planned order releases

c.the capacity needed to provide the projected output rate

d.the expenses connected with alternate plans

e.whether one should use phantom bills of material or not

b (MRP structure, moderate)


76.Which of the complying with finest differentiates product requirements planning (MRP) from finite capacity scheduling (FCS)?

a.FCS recognizes the finite nature of capacity while MRP does not.

b.FCS functions in solutions while MRP does not.

c.MRP requires time buckets while FCS does not.

d.FCS is an input right into traditional MRP units.

e.FCS uses the Wagner-Whitin algorithm while MRP supplies lot-for-lot and also EOQ.

a (MRP administration, moderate)

77.Which of the following lot-sizing methods outcomes in the lowest holding costs?



c.part-duration balancing

d.Wagner-Whitin algorithm

e.the amount discount model

a(Lot-sizing methods, moderate)

78.Which of the following statements is true about the MRP plan when making use of lot-for-lot ordering?

a.The quantity of gross demands for a son item is always equal to the amount of planned order releases for its parent.

b.The amount of gross needs for a kid item is equal to the amount of planned order release(s) multiplied by the number of child items used in the parent assembly.

c.The quantity of gross demands for a boy item is constantly equal to the amount of gross needs for its parent.

d.The amount and gross requirements for a boy item is constantly equal to the quantity of net needs for its parent.

e.All of the above are true.

b (MRP framework, moderate)

79.What lot-sizing approach is primarily wanted once inventory holding expenses are extremely high?



c.part-duration balancing

d.the Wagner-Whitin algorithm

e.All of the over are appropriate for the instance.

a(Lot-sizing approaches, moderate)

80.For the lot-sizing strategy well-known as lot-for-lot to be appropriate

a.future demand have to be recognized for several weeks

b.setup expense must be reasonably small

c.annual volume have to be rather low

d.item unit cost must be fairly small

e.the independent demand also price have to be incredibly stable

b (Lot-sizing methods, moderate)


81.An item"s holding expense is 60 cents per week. Each setup prices $120. Lead time is 2 weeks. EPP is






e(Lot-sizing approaches, moderate) AACSB: Analytic Skills

82.Which of the adhering to statements regarding lot-sizing is true?

a.EOQ principles must be adhered to whenever economical.

b.Too much worry with lot-sizing results in false accuracy.

c.Lot-for-lot cannot be modified for scrap allowance or procedure constraints.

d.The Wagner-Whitin algorithm simplifies lot dimension calculations.

e.All of the above are true.

b(Lot-sizing techniques, moderate)

83.A firm renders countless models of mowers, garden tractors, and gasoline powered energy vehicles. Some assemblies and also components are widespread to many type of finish items. To relieve the MPS of performing order releases on these prevalent components, the firm might select to usage the __________ approach.


b.economic component period


d.gross product requirements

e.resource needs profile

c (MRP management, moderate)

84.Capacity planning in closed-loop MRP

a.uses feedback around workpack from each occupational center

b.may make use of resource requirements profiles (fill reports)

c.might smooth work center loads via such methods as overlapping and lot splitting

d.does not include capacity, yet fairly looks for reliable usage of existing capacity

e.All of the over are true.

e (Extensions of MRP, moderate)

85.If a pack report (reresource demands profile) shows a work facility booked beyond capacity

a.the firm need to add capacity by enlarging the facility

b.the company have to include capacity by such strategies as overtime and subcontracting

c.the occupational center"s pack may be smoothed by such methods as operations splitting or lot splitting

d.the accumulation plan should be revised

e.the Wagner-Whitin algorithm should be used to rebalance the load

c (Extensions of MRP, moderate)

86.MRP II is accurately explained as

a.MRP software application designed for services

b.MRP through a brand-new set of computer programs that execute on microcomputers

c.MRP augmented by various other reresource variables

d.an enhancement of MRP that plans for all levels of the supply chain

e.a new generation of MRP software that exhas a tendency MRP to planning and scheduling functions

c(Extensions of MRP, moderate)


87.The extension of MRP which extends to resources such as labor hours and machine hours, and to order enattempt, purchasing, and also direct interconfront with customers and companies is


b.enterprise reresource planning

c.the master production schedule

d.closed-loop MRP

e.not yet technically possible

b (Extensions of MRP, moderate)

88.Which of the following statements concerning MRP in solutions is true?

a.MRP is for production just, and is not applicable to services.

b.MRP can be used in solutions, yet just those that sell very limited customization.

c.MRP does not occupational in services because tbelow is no dependent demand.

d.Services such as restaurant meals highlight dependent demand, and also require product structure trees, bills-of-product, and also scheduling.

e.None of the over is true.

d (MRP in services, moderate)

89.Distribution reresource planning (DRP) is

a.a transport plan to ship products to warehouses

b.a time-phased stock replenishment plan for all levels of a circulation network

c.a shipping arrangement from a main warehouse to retail warehouses

d.product requirements planning with feedback loop from circulation centers

e.a material needs planning package used exclusively by warehouses

b (MRP in solutions, moderate)

90.By convention, the optimal level in a bill of product is

a.level 0

b.level 1

c.level T

d.level 10

e.level 100

a (Dependent inventory version demands, moderate)

91.Enterpclimb resource planning (ERP)

a.seldom needs software application upgrade or enhancement

b.does not combine well with useful areas various other than operations

c.is inexpensive to implement

d.automates and integprices the majority of business processes

e.all of the above

d (Enterpclimb reresource planning (ERP), moderate)

92.Enterpclimb reresource planning (ERP)

a.has actually been made possible bereason of advances in hardware and also software

b.provides client/server networks

c.creates commonality of databases

d.supplies business application-programming interencounters (BAPI) to access their database

e.All of the above are true of ERP.

e (Enterpclimb reresource planning (ERP), moderate) AACSB: Use of IT


93.Which of the complying with is false concerning enterprise reresource planning (ERP)?

a.It attempts to automate and integrate the majority of company procedures.

b.It shares widespread information and also techniques across the enterpclimb.

c.It is inexpensive to implement.

d.It provides and accesses information in a real-time environment.

e.All of the over are true.

c (Enterpincrease resource planning (ERP), moderate)

94.Which of the adhering to regarding enterpincrease reresource planning (ERP) is true?

a.It requires an continuous process for implementation.

b.It have the right to incorpoprice boosted, reengineered "best processes."

c.It has actually a software application database that is off-the-shelf coding.

d.ERP devices commonly include MRP, financial and humale reresource indevelopment.

e.All of the over are true.

e (Enterpincrease resource planning (ERP), moderate)

95.All of the complying with are advantages of enterpclimb resource planning (ERP) except it

a.creates commonality of databases

b.rises communications and teamwork worldwide

c.helps combine multiple sites and service units

d.calls for significant alters in the firm and also its processes to implement

e.can administer a strategic benefit over competitors

d (Enterpincrease resource planning (ERP), moderate) AACSB: Communication


96.Wheeled Coach supplies ______________ as the catalyst for low inventory, high quality, tight schedules, and exact records.

product demands planning or MRP (Global company profile, easy)

97.______________ is a dependent demand method that uses a bill of material, inventory, intended receipts, and also a grasp manufacturing schedule to determine product requirements.

Material needs planning or MRP (Dependent demand, easy)

98.A(n) ____________ is a timetable that states what is to be made and also once.

understand manufacturing schedule or MPS (Dependent inventory design requirements, easy)

99.A(n) ____________ is a listing of the components, their description, and the amount of each forced to make one unit of a product.

bill of product or BOM (Dependent inventory design demands, moderate)

100.A procedure emphasis facility (for instance, a print shop) will certainly most likely schedule ______________ as the focus of its understand production schedule.

orders (Dependent inventory design demands, easy)

101.Bills of material organized by significant subassemblies or by product choices are called


modular bills (Dependent inventory design demands, moderate)


102.The ______________ is provided to correct an erroneous dimension, amount, or various other specification in a bill of material.

design change notification (Dependent inventory model demands, easy)

103.______________ is a bill of product for components, typically assemblies that exist just temporarily; they are never inventoried.

Phantom bill of product (Dependent inventory design requirements, moderate)

104.____________ are the result of adjusting gross needs for inventory on hand and also booked receipts.

Net product demands (MRP structure, moderate)

105.___________ are a method of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Time fences (MRP monitoring, moderate)

106.______________, unprefer MRP, recognizes that departments and also devices have actually constraints on their capacity that have to be observed if the schedule is to be realistic.

Finite capacity scheduling or FCS (MRP management, easy)

107.__________ refers to the time devices in a product needs planning (MRP) mechanism.

Buckets (MRP monitoring, easy)

108._____________ is a lot-sizing strategy that geneprices precisely what was compelled to accomplish the plan.

Lot-for-lot (Lot-sizing approaches, moderate)

109.The ______________ strategy may be applicable wright here a firm"s components and subassemblies are widespread to a variety of its products.

superindustry (MRP monitoring, easy)

110.A(n) __________________ provides feedback to the capacity arrangement, understand production schedule, and also production plan so planning can be preserved valid at all times.

closed-loop MRP system (Expansions of MRP, moderate)

111.A(n) ______________ deserve to illustrate whether a job-related center has been booked beyond its capacity. fill report or reresource need profile (Expansions of MRP, easy)

112.___________ is a device that allows, through MRP in place, inventory data to be augmented by other resource variables.

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Material demands planning II or product resource planning or MRP II (Expansions of MRP, moderate)

113.A(n) __________________ mechanism is packaged service software that automates and integprices the majority of their business procedures, shares widespread information and methods across the whole enterpclimb, and also produces and accesses indevelopment in a real-time setting.

enterprise reresource planning or ERP (Enterpincrease Resource Planning (ERP), moderate) AACSB: Use of IT