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| 1 | |
MRP is used for independent demand items. |
| | A) | True |
| | B) | False |
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| 2 | |
MRP applications are limited to manufacturing; services do not use it. |
| | A) | True |
| | B) | False |
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| 3 | |
Pegging can be used to identify the supplier that provided a specific component of an item. |
| | A) | True |
| | B) | False |
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| 4 | |
With lot-for-lot ordering, planned order releases equal net requirements. |
| | A) | True |
| | B) | False |
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| 5 | |
Planned order releases and planned order receipts must be equal. |
| | A) | True |
| | B) | False |
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| 6 | |
Planned order releases differ from planned order receipts in terms of timing, but not in terms of quantity. |
| | A) | True |
| | B) | False |
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| 7 | |
A bill of materials contains a listing of all the materials needed to produce an item. |
| | A) | True |
| | B) | False |
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| 8 | |
Capacity requirements planning involves determining short-range capacity requirements. |
| | A) | True |
| | B) | False |
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| 9 | |
A regenerative system updates MRP records continuously. |
| | A) | True |
| | B) | False |
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| 10 | |
MRP II is an expanded approach to production resource planning. |
| | A) | True |
| | B) | False |
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| 11 | |
Backflushing refers to cleaning out the system in preparation for the next job. |
| | A) | True |
| | B) | False |
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| 12 | |
The planned order releases at each level of MRP are one determinant of the gross requirements at the next lower level. |
| | A) | True |
| | B) | False |
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| 13 | |
MRP is typically part of an ERP system. |
| | A) | True |
| | B) | False |
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| 14 | |
MRP is primarily used in this setting: |
| | A) | job shop |
| | B) | continuous |
| | C) | batch |
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| 15 | |
Which of these describes lot sizing? Determining |
| | A) | planned order releases |
| | B) | net requirements |
| | C) | when to order |
| | D) | how much to order |
| | E) | None of these. |
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| 16 | |
In MRP, planned order receipts must always equal |
| | A) | scheduled receipts |
| | B) | planned order releases |
| | C) | net requirements |
| | D) | gross requirements |
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| 17 | |
Which is true about scheduled receipts? |
| | A) | They are orders previously placed, and not yet completed or received. |
| | B) | They must be less than the Net Requirements in any period. |
| | C) | They are included in Planned Order Receipts. |
| | D) | They are added to Gross Requirements to get Net Requirements. |
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| 18 | |
In MRP, the listing of all the subassemblies and components needed to produce a unit of an end item is called the: |
| | A) | material requirements plan |
| | B) | master schedule |
| | C) | bill of materials |
| | D) | master production schedule |
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| 19 | |
Which one is not a primary report for MRP? |
| | A) | Planned orders |
| | B) | Order releases. |
| | C) | Changes. |
| | D) | Exceptions. |
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| 20 | |
Low level coding refers to |
| | A) | Having low level employees input product codes into computer data banks. |
| | B) | Structuring a bill of materials so that multiple occurrences of an item coincide with the lowest level that the item occurs. |
| | C) | Using low levels of coding to simplify identification of components in an MRP setup. |
| | D) | None of these. |
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| 21 | |
In MRP, which one of these could not generally be a factor in determining the net requirements of a component? |
| | A) | Planned Order Releases |
| | B) | Scheduled Receipts |
| | C) | Projected on-hand |
| | D) | Gross Requirements |
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| 22 | |
Closed loop MRP relates most closely to: |
| | A) | Capacity planning |
| | B) | ERP |
| | C) | Scheduled Receipts |
| | D) | Planned Order Receipts. |
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| 23 | |
A key goal of MRP is to: |
| | A) | Avoid cost overruns. |
| | B) | Use Scheduled Receipts only when necessary. |
| | C) | Match supply and demand. |
| | D) | Order early to avoid late-order penalties. |
| | E) | All are key goals. |
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| 24 | |
Which one is not included in a list of ERP hidden costs? |
| | A) | Waiting for ROI. |
| | B) | Consultants ad infinitum. |
| | C) | Data analysis and conversion. |
| | D) | High purchase costs. |
| | E) | Integration and testing. |
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| 25 | |
Which one would not be a reason for using ERP, or would all be reasons? |
| | A) | Integration of financial data. |
| | B) | Standardize production processes. |
| | C) | Standardize HR information. |
| | D) | Interconnect production, sales, and distribution on a single server. |
| | E) | all are reasons. |
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