Question 1

Projected available balance is the amount of inventory that is expected as of the beginning of a period.

Accepted Answer

The answer of Projected available balance is the amount of...

Question 2

A BOM file is sometimes called which of the following?

Accepted Answer

A BOM (Bill of Materials) file is a hierarchical representation of a product's components and their relationships. It is often referred to as a product structure tree as it shows how the product is assembled and the dependencies between different parts. The other options listed are not commonly used to refer to a BOM file.

Question 3

The economic order quantity (EOQ)lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

Accepted Answer

The economic order quantity (EOQ) lot sizing technique is a inventory management method that aims to find the optimal order quantity that minimizes total inventory costs, including holding costs and ordering costs. This may result in some inventory being carried over into future periods.

Question 4

The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

Accepted Answer

The lot-for-lot (L4L) technique orders exactly what is needed for production and does not take into account setup costs or capacity limitations; it aims to minimize carrying costs by not holding excess inventory.

Question 5

The three main inputs to an MRP system are the bill of materials,the master schedule and the inventory records file.

Accepted Answer

The bill of materials, master schedule and inventory records file are indeed the three main inputs to an MRP (Materials Requirements Planning) system.

Question 6

A material requirements planning (MRP)system with information feedback from its module outputs is termed a "closed-loop MRP" system.

Accepted Answer

A closed-loop MRP system receives feedback from its module outputs to adjust and update its output. This allows for more accurate planning and control of materials, production, and scheduling.

Question 7

The least total cost method (LTC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

This is a correct statement about the least total cost method (LTC) for lot-sizing.

Question 8

"Available to promise" is a term referring to unsold finished goods inventory.

Accepted Answer

The answer of "Available to promise" is a term referring...

Question 9

The least unit cost method (LUC)of lot-sizing technique adds ordering,stock-out and inventory carrying cost for each trial lot size and divides by the number of units in each lot size,picking the lot size with the lowest unit cost.

Accepted Answer

The answer of The least unit cost method (LUC)of lot-sizing...

Question 10

Which of the following industry types will not benefit greatly from the application of MRP?

Accepted Answer

Fabricate-to-order industries typically do not use standardized, pre-made parts and instead create unique products based on customer specifications. MRP is designed for industries that use standard parts and materials which are stored in a bill of materials system. Therefore, the application of MRP would not be as beneficial for fabricate-to-order industries.

Question 11

Lot-for-lot (L4L)is the most common lot sizing technique.

Accepted Answer

Lot-for-lot is indeed the most common lot sizing technique. It produces the exact required quantity for each period, thus minimizing inventory levels and cost.

Question 12

Which of the following industry types have high expected benefits from the application of MRP?

Accepted Answer

The answer of Which of the following industry types have...

Question 13

A lot-for-lot (L4L)lot sizing technique does not take into account setup costs or capacity limitations.

Accepted Answer

A lot-for-lot (L4L) lot sizing technique is a basic inventory management approach that orders exactly the amount needed to meet production or sales demands, without considering setup costs or capacity limitations.

Question 14

Since MRP systems focus on batch or lot-sized orders and JIT is focused on individual item production,the two systems are incompatible and cannot work together.

Accepted Answer

While MRP systems and JIT have different approaches, they can be integrated and work together effectively. MRP can be used to plan and schedule batch orders while JIT can be used for individual item production within those batches. This allows for efficient use of resources and reduced waste.

Question 15

The difference between the number of units currently included in the master schedule and the number of units in firm customer orders is often called "available to promise".

Accepted Answer

This is true. "Available to promise" refers to the number of units that a company has available to allocate to new customer orders, after accounting for any units already committed to existing orders in the master schedule.

Question 16

"Projected available balance" is a term referring to unsold finished goods inventory.

Accepted Answer

"Projected available balance" refers to the projected amount of funds in a bank account or credit card after pending transactions are taken into account.

Question 17

The economic order quantity (EOQ)lot sizing technique uses the "square root formula" to balance set-up cost,carrying cost and cost of stock-outs.

Accepted Answer

The EOQ lot-sizing technique uses a formula that calculates the optimal quantity of inventory to order based on setup cost and carrying cost, but does not take into account the cost of stockouts. There is no specific "square root formula" used in EOQ calculations.

Question 18

The least unit cost method (LUC)of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size,picking the lot size with the lowest unit cost.

Accepted Answer

The statement accurately describes the least unit cost method (LUC) of lot-sizing technique.

Question 19

Generally,determining lot sizes in MRP systems is simple.

Accepted Answer

Determining lot sizes in MRP systems can involve complex calculations based on factors such as order quantity, product demand, available inventory, and production capacity constraints. Therefore, it is not always simple.

Question 20

The least unit cost method (LUC)lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot in which these are most nearly equal.

Accepted Answer

The answer of The least unit cost method (LUC)lot-sizing technique...

Quiz 18: Material Requirements Planning