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Multiple Choice Quiz
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1
MRP is used for independent demand items.
A)True
B)False
2
MRP applications are limited to manufacturing; services do not use it.
A)True
B)False
3
Pegging can be used to identify the supplier that provided a specific component of an item.
A)True
B)False
4
With lot-for-lot ordering, planned order releases equal net requirements.
A)True
B)False
5
Planned order releases and planned order receipts must be equal.
A)True
B)False
6
Planned order releases differ from planned order receipts in terms of timing, but not in terms of quantity.
A)True
B)False
7
A bill of materials contains a listing of all the materials needed to produce an item.
A)True
B)False
8
Capacity requirements planning involves determining short-range capacity requirements.
A)True
B)False
9
A regenerative system updates MRP records continuously.
A)True
B)False
10
MRP II is an expanded approach to production resource planning.
A)True
B)False
11
Backflushing refers to cleaning out the system in preparation for the next job.
A)True
B)False
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
13
MRP is typically part of an ERP system.
A)True
B)False
14
MRP is primarily used in this setting:
A)job shop
B)continuous
C)batch
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.
16
In MRP, planned order receipts must always equal
A)scheduled receipts
B)planned order releases
C)net requirements
D)gross requirements
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.
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
19
Which one is not a primary report for MRP?
A)Planned orders
B)Order releases.
C)Changes.
D)Exceptions.
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.
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
22
Closed loop MRP relates most closely to:
A)Capacity planning
B)ERP
C)Scheduled Receipts
D)Planned Order Receipts.
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.
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.
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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