7/29/2021 Multiple Choice Quiz

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The correct answer for each question is indicated by a .

1 MRP is used for:

INCORRECT
A) independent demand items.

B) dependent demand items.

C) available-to-promise items.

D) disaggregated items.

E) pegged items.

2 CORRECT If lot-for-lot ordering is used, then planned order releases will be equal to:

A) gross requirements.

B) projected on hand less safety stock.

C) projected on hand plus safety stock.

D) net requirements.
3 CORRECT Which of the following is not a direct input into MRP?

A) the master production schedule

B) bills of materials

C) the aggregate plan

D) inventory records
4 MRP is primarily used in this setting:
INCORRECT
A) job shop

B) continuous

C) batch
5 Which of these describes lot sizing? Determining:
INCORRECT
A) planned order releases

B) net requirements

C) when to order

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7/29/2021 Multiple Choice Quiz
D) how much to order
6 CORRECT In MRP, planned order receipts must always equal:

A) scheduled receipts.

B) planned order releases.

C) net requirements

D) gross requirements.
7 CORRECT 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.

8 CORRECT 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.

9 Which one of these is a secondary, rather than a primary, report that will result from MRP?
INCORRECT
A) planned orders

B) order releases

C) changes

D) exceptions
10 Low-level coding refers to:
INCORRECT
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 at which the item occurs.

C) using low levels of coding to simplify identification of components in an MRP setup.

D) keeping item record numbers as simple as possible.

11 In MRP, which one of these would not generally be a factor in determining the net requirements of a component?
INCORRECT
A) planned order releases

B) scheduled receipts

C) projected on hand

D) gross requirements
12 Closed-loop MRP relates most closely to:
CORRECT
A) capacity planning.

B) ERP.

C) scheduled receipts.

D) planned order receipts.

13 A key goal of MRP is to:
CORRECT

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7/29/2021 Multiple Choice Quiz
A) minimize variable cost.
B) use scheduled receipts only when necessary.

C) match what is on hand with what is needed to be on hand.

D) order early to avoid late-order penalties.

14 Two units of subcomponent Z go into each unit of component Q, and Z doesn't go into anything other than Q. Z's lead time is one week. Q's lead time is two weeks. Q
INCORRECT has a planned order release of 400 units in week 5. As regards Z, therefore, ____________ in week __________ are 800.
A) net requirements; 5

B) gross requirements; 5

C) net requirements; 4

D) gross requirements; 4
15 Product Alpha consists of two units of component X and four units of component Y. Component X consists of four units of component Y and two units of component Z.
INCORRECT Component Y's lead time is two weeks, there are no units of component Y on hand, and there are no scheduled receipts for component Y. There are 400 units of
component X on hand. Neither X nor Y go into any other item or subcomponent. If 100 units of Alpha are to be produced beginning in week 4, then __________ units
of component Y will need to be begun in week __________.
A) 400; 3

B) 1,200; 1

C) 800; 3

D) 400; 2

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