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28. Using a lot-for-lot ordering strategy for the following item, what is the net requirements
amount in week 3? (Note: Use a lead time of one week and the gross requirements and
scheduled receipts depicted below, and assume you begin with 100 units in inventory.)
Week 1 2 3 4
Gross requirements 0 100 80 15
Scheduled receipts 75 0 0 0
Projected ending inventory (100)
Net requirements
Planned order receipts
Planned order releases
29. Using a lot-for-lot ordering strategy for the following item, what is the planned order
release amount in week 3? (Note: Use a lead time of one week and the gross requirements and
scheduled receipts depicted below, and assume you begin with 50 units in inventory.)
Week 1 2 3 4
Gross requirements 0 100 80 15
Scheduled receipts 25 0 0 0
Projected ending inventory (50)
Net requirements
Planned order receipts
Planned order releases
Chapter 15 – Materials Requirements Planning and ERP
30. End item A requires three component parts: B, C, and D. The BOM indicates that for
each completed A, 1 unit of B, 2 units of C, and 1 unit of D are required. Current inventory
for the four items is as follows: there are 15 As, 40 Bs, 50 Cs, and 15 Ds in stock. If the lead
time for all items is 1 week and there are no scheduled receipts for any item, how many units
of product A can be delivered to customers at the start of next week (week 2) if you realize
now the BOM has just been changed? You now realize it takes 2 units of B to make 1 finished
unit of A.
31. Which of the following is NOT an element of an MRP system?
32. The main problem with the traditional annual physical inventory count is
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33. Which of the following is correct regarding future demand for component parts?
34. Which of the following would NOT likely be included in a typical computerized
inventory record?
35. Which of the following statements is correct regarding the impact of an MRP system on
the purchasing function?
Chapter 15 – Materials Requirements Planning and ERP
36. Which of the following statements is correct regarding the use of an MRP system?
37. The purpose of the shop floor control subsystem is to
38. A manufacturing execution system (MES)
Chapter 15 – Materials Requirements Planning and ERP
39. An MRP system makes it possible to
40. The purpose of lot sizing in MRP is to
41. When MRP is extended all the way to the final customer, this is called
Chapter 15 – Materials Requirements Planning and ERP
42. Integration with which of the following functions is required for an effective ERP
system?
43. Which of the following is true of ERP systems?
44. Which of the following statements concerning MRP system operation is correct?
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True/False Questions
45. Forecasting demand in MRP systems is based on the past demand patterns for
components.
46. A bill of materials can be coupled with a bill of labor if MRP systems are to be used in
service industries.
47. The economic order quantity model is extremely useful while making decisions on order
quantities in MRP systems.
48. In MRP systems, inventories are managed according to their dollar usage values (i.e., high
dollar usage inventories are more carefully managed compared to low dollar usage
inventories).
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53. The master schedule should be frozen inside the production lead time.
Essay Questions
54. Compare and contrast MRP systems and order-point systems of managing inventories.
When do firms prefer MRP systems to order-point systems? Can MRP systems be used while
managing capacity in a factory? Provide sufficient justification for your answer.
LO: 15.2
Topic: MRP versus Order-Point Systems
Difficulty: 2 Moderate
AACSB: Application of knowledge, written communication
Bloom’s: Understand, apply
Feedback: See below.
MRP systems are typically preferred for managing dependent demands—that is, demands that
are dependent on higher-level parts and components (e.g., work-in-process inventories for