Question 1

Gross material requirements do not take into account the amount of inventory on hand.

Accepted Answer

Gross material requirements only consider the total amount of materials needed for production, without taking into account any inventory already available. This means that the actual amount of materials needed may be lower if there is inventory on hand.

Question 2

An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 50 units of N on hand. What are the net requirements for N?

Accepted Answer

To produce 110 units of M, we need a total of (110-30) = 80 units of M.
Since each M needs 4 units of N, we need a total of 80*4 = 320 units of N.
Since there are 50 units of N currently on hand, the net requirements for N is 320-50 = 270. Thus, the best choice is B.

Question 3

Which of the following statements regarding the gross material requirements plan is TRUE?

Accepted Answer

All of the statements are true. The gross material requirements plan shows the total demand for an item, when an item must be ordered from a supplier or when production must be started, and combines a master production schedule with the time-phased schedule. It also requires several inputs, including an accurate bill of material.

Question 4

Fourteen A washers, five B washers, three C washers, two D bolts, and eight E bolts are required to make one grill parts kit. If 100 grill parts kits are needed, how many more washers will be consumed than bolts?

Accepted Answer

The answer of Fourteen A washers, five B washers, three...

Question 5

A manufacturing company is trying to determine the cost of materials used to produce an A. If Ds cost $3 and Fs cost $5, how much does it cost to produce an A (in D and F materials only)?

Accepted Answer

The answer of A manufacturing company is trying to determine...

Question 6

Consider the following product structure. Forty units of Product A are needed. How many units of B, C, D, E, F, and G are needed?

Accepted Answer

The answer of Consider the following product structure. Forty units...

Question 7

An order for 50 units of Product A and 60 of B has been placed. There are currently 25 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. What are the net requirements for C?

Accepted Answer

The net requirements for C are calculated as follows: Product A needs 2 units of C per unit, so for 50 units of A, 100 units of C are needed. Product B needs 5 units of C per unit, so for 60 units of B, 300 units of C are needed. However, there are already 25 units of B on hand, which means only 35 units of B need to be produced, requiring 175 units of C (35 units of B * 5 units of C). Therefore, the total requirement for C is 100 (for A) + 175 (for B) = 275 units of C. Since there are 160 units of C available, the net requirement is 275 - 160 = 115 units of C.

Question 8

A material requirements planning system generates output reports such as bill of material, inventory and purchase records, and lead times for each item.

Accepted Answer

A material requirements planning (MRP) system primarily generates planned order reports, which detail what items are needed, how many are needed, and when they are needed. While it does use the bill of materials, inventory records, and lead times as inputs to generate its outputs, these are not considered output reports of the MRP system itself.

Question 9

A material requirements plan contains information with regard to all of the following EXCEPT:

Accepted Answer

Material requirements planning (MRP) focuses on the quantities, required delivery dates of all subassemblies, final products, and inventory levels for both, but does not directly address the capacity needed to provide the projected output rate. Capacity requirements planning (CRP) is typically used to determine the capacity needed.

Question 10

________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Accepted Answer

The answer of ________ are the result of adjusting gross...

Question 11

Explain the difference between a gross requirements plan and a net requirements plan.

Accepted Answer

The answer of Explain the difference between a gross requirements...

Question 12

Each R requires 3 of component S and 3 of material A; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for material A is 1 week. The lead time for the procurement of T is 4 weeks. Construct the time-phased product structure.

Accepted Answer

The answer of Each R requires 3 of component S...

Question 13

In MRP, the number of units projected to be available at the beginning of each time period refers to:

Accepted Answer

The number of units projected to be available at the beginning of each time period refers to projected on hand, as this represents the expected inventory level at the start of each period after considering all scheduled receipts, planned order releases, and net requirements.

Question 14

It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 2 weeks, when and how large of an order should be placed to meet the requirement of 300 As?

Accepted Answer

To meet the requirement of 300 As by the start of week 5, considering the current stock of 20 As and the scheduled receipts of 120 As each in weeks 3 and 4, an additional 40 As are needed. Since A has a lead time of 2 weeks, the order must be placed in week 3 to ensure the As are available by week 5.

Question 15

Each X requires 2 of component Y and 1 of part W. Each Y requires 10 of Z. Each W requires 3 of Q and 2 of R. Lead times are X = 1 week, Y = 1 week, W = 2 weeks, R = 1 week, Z = 3 weeks, and Q = 3 weeks. Construct the time-phased product structure.

Accepted Answer

The answer of Each X requires 2 of component Y...

Question 16

Which of the following best describes a gross material requirements plan?

Accepted Answer

A gross material requirements plan is a schedule that shows the total demand for an item and when it must be ordered from a supplier or when production must be started. It is used for purchasing and production planning.

Question 17

Construct a product structure tree for a movie purchased in DVD format. Assume that it contains a single DVD disk. Don't be concerned with artwork-you may use labeled boxes for your parts and assemblies.

Accepted Answer

The answer of Construct a product structure tree for a...

Question 18

An order for 100 units of Product A has been placed. There are currently 60 units of Product A on hand. Each A requires 4 units of Part B. There are 20 units of B available. What are the net requirements for B?

Accepted Answer

To fulfill the order for 100 units of Product A, 400 units of Part B are needed (100 units of A * 4 units of B per A). With 20 units of B on hand, the net requirement is 400 - 20 = 380 units of B. However, since there are only 60 units of A on hand and the order is for 100 units, the calculation should consider the additional units of A needed to meet the order. The calculation provided initially was incorrect in the explanation phase. The correct calculation for the net requirements of B, considering the units of A on hand and the correction, should focus on the additional units of A needed beyond the 60 units on hand, which is 40 units of A (100 - 60). Therefore, for these 40 additional units of A, 160 units of B are needed (40 units of A * 4 units of B per A). Since there are 20 units of B available, the net requirement for additional B units to meet the order is indeed 160 - 20 = 140 units of B, making the correct answer E) 140.

Question 19

If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.

Accepted Answer

The gross requirement is the total quantity needed, which is 100 in this case. The net requirement is the quantity needed after deducting the current stock, which is 90 in this case (100-10=90).

Question 20

Consider the following product structure.  If the demand for product A is 40 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed?

Accepted Answer

The answer of Consider the following product structure.  If...

Quiz 13: Material Requirements Planning Mrp and Erp