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1 | | Material Requirements Planning is intended to replace the older techniques of determining economic order quantities. |
| | A) | True |
| | B) | False |
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2 | | Lot-for-lot sizes are determined through the use of the least total cost method. |
| | A) | True |
| | B) | False |
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3 | | The Master Production Schedule which is input to the MRP program is automatically corrected when infeasible final loads on the productive system are generated. |
| | A) | True |
| | B) | False |
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4 | | It is generally believed by experts that MRP and JIT are incompatible. |
| | A) | True |
| | B) | False |
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5 | | The reason for low level coding in MRP is: |
| | A) | To show the relative importance of component items |
| | B) | To make it easier for the computer to search |
| | C) | To show the offset lead times in perspective |
| | D) | So that the transaction file can be updated easily |
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6 | | Product explosion refers to: |
| | A) | Calculation of the required materials based on final assembly needs |
| | B) | System nervousness |
| | C) | Dynamic characteristics of MRP |
| | D) | System sensitivity |
| | E) | Creating a time-phased schedule |
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7 | | Which of the following is NOT essential for computational procedures of MRP? |
| | A) | Planned order release of component equals gross requirement of parent |
| | B) | Netting out on hand quantities |
| | C) | Time phasing requirements |
| | D) | Offsetting for lead times |
| | E) | Level-by-level explosion |
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8 | | Which one of the following statements about the Master Production Schedule is FALSE? |
| | A) | It is the major input to Materials Requirements Plan |
| | B) | Specific materials are planned at this stage |
| | C) | Marketing and Operations are both involved at the Master Production Schedule level |
| | D) | Statistical inventory control methods can be used in this plan |
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9 | | MRP systems are: |
| | A) | Appropriate for all end items in the product line |
| | B) | Intended to be used for independent demand items |
| | C) | Intended to reduce inventory requirements, production lead times, and delivery times to customers |
| | D) | Intended to determine an appropriate master production schedule |
| | E) | Substitutes for fixed order point/order quantity systems |
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10 | | The three major inputs to an MRP system are the: |
| | A) | MPS, inventory status record, and product structure record |
| | B) | Bill of materials, inventory status record, and production structure record |
| | C) | Shop order, work orders, and reschedule notices |
| | D) | On hand, on order, and lead time |
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11 | | In an MRP system, component demand is: |
| | A) | Forecasted |
| | B) | Established by the master production schedule |
| | C) | Calculated by the MRP system from the master production schedule |
| | D) | ignored |
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12 | | Today MRP is most commonly the: |
| | A) | Manufacturing component of supply chain management software |
| | B) | Marketing component of supply chain management software |
| | C) | Manufacturing component of enterprise resource planning software |
| | D) | Marketing component of enterprise resource planning software |
| | E) | Human resources component of enterprise resource planning software |
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