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Chapter 16 - Materials Requirements Planning and ERP
16-1
1. A Type II MRP system:
Difficulty: Moderate
2. The three inputs for an MRP parts explosion are:
Difficulty: Hard
3. A requirements-based system derives orders from:
Difficulty: Hard
4. A replenishment-based system derives orders from:
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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5. An MRP system is designed to deal with:
Difficulty: Easy
6. Planned lead times:
Difficulty: Hard
7. The parts explosion results in the following outputs:
Difficulty: Hard
8. Safety stock in an MRP system:
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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9. The bill of materials:
Difficulty: Easy
10. Successful MRP implementation requires:
Difficulty: Moderate
11. Cycle counting:
Difficulty: Easy
12. Bills of materials are kept current with changes using:
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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13. Which type of MRP system is used as an information system to plan and control
inventories and capacities?
Difficulty: Moderate
14. Which of the following is true about MRP Systems?
Difficulty: Moderate
15. Which system specifies the output of the operations function?
Difficulty: Moderate
16. Type I Material requirements planning systems:
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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17. All of the following help to handle uncertainty when operating an MRP system EXCEPT:
Difficulty: Moderate
18. Successful MRP system elements include:
Difficulty: Easy
19. Which of the following most closely describes net material requirements in an MRP
system?
Difficulty: Moderate
20. The gross requirements of a part in an MRP system are determined from:
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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21. _______ system uses requirements order philosophy, while _____ system uses
replenishment order philosophy.
Difficulty: Moderate
22. In MRP "scheduled receipts" are:
Difficulty: Moderate
23. The master production schedule for Product A shows a need for 30 units, and Product B
shows a need of 25 units. To manufacture a unit of Product A, three units of component C are
required. To manufacture a unit of Product B, four units of component C are required.
Determine the gross requirements for component C to complete production.
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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24. End item A requires three component parts: B, C, and D. The bill of materials indicates
that for each completed A, one 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 18 As, 40 Bs, 50 Cs and 35 Ds in stock. If
the lead time for all items is one 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)?
Difficulty: Moderate
25. Forecasting demand in MRP Systems is based on the past demand patterns for
components.
Difficulty: Moderate
26. A bill of materials can be coupled with a bill of labor if MRP systems are to be used in
service industries.
Difficulty: Easy
27. The Economic Order Quantity model is extremely useful while making decisions on order
quantities in MRP systems.
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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28. Order launching MRP systems are also known as Type II MRP systems.
Difficulty: Moderate
29. 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).
Difficulty: Hard
30. When a company uses an ERP system, the different functional areas of the business will
share a common database.
Difficulty: Easy
31. MRP systems work better in a line flow system compared to a job shop.
Difficulty: Moderate
32. MRP is a type of pull system.
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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33. The master schedule is prepared for product families.
Difficulty: Moderate
34. The master schedule should be frozen inside the production lead-time.
Difficulty: Easy
35. 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.
Difficulty: Moderate
Chapter 16 - Materials Requirements Planning and ERP
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