Question 1

________ 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 2

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

Accepted Answer

When safety stock is essential, it is typically included in the inventory requirements of the MRP logic to address uncertainties in demand and supply.

Question 3

Consider the following product structure.  If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?
A)3
B)40
C)70
D)90
E)110

Accepted Answer

Based on the product structure, we know that:
- 1 unit of A requires 2 units of B
- 1 unit of B requires 3 units of C
- 1 unit of C requires 2 units of D

Therefore, to produce 30 units of A, we need:
- 30 * 2 = 60 units of B
- 60 * 3 = 180 units of C
- 180 * 2 = 360 units of D

Since we have 10 units of B and none of C, we need to produce:
- 60 - 10 = 50 units of B
- 180 units of C
- 180 * 2 = 360 units of D

So the answer is 360 units of D, which is option C.

Question 4

A material requirements plan contains information with regard to all of the following EXCEPT:
A)quantities and required delivery dates of all subassemblies.
B)quantities and required delivery dates of final products.
C)the capacity needed to provide the projected output rate.
D)inventory on hand for each final product.
E)inventory on hand for each subassembly.

Accepted Answer

A material requirements plan provides information regarding the quantity and delivery dates of subassemblies and final products, as well as inventory levels for both subassemblies and final products. However, it does not include information about the capacity needed to provide the projected output rate, which is typically included in a capacity requirements plan.

Question 5

An order for 110 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?
A)20
B)120
C)180
D)240
E)440

Accepted Answer

The answer of An order for 110 units of Product...

Question 6

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 and do not account for the materials already available in inventory. Net material requirements takes into account the inventory on hand.

Question 7

An order has been placed for 50 units of Product A and 60 units of Product B.There are currently 35 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.
(a)Calculate the net requirements for B.
(b)Calculate the gross requirements for C.
(c)Calculate the net requirements for C.

Accepted Answer

The answer of An order has been placed for 50...

Question 8

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?
A)115
B)175
C)240
D)690
E)700

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 9

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available.
(a)Calculate the net requirements for A.
(b)Calculate the gross requirements for B.
(c)Calculate the net requirements for B.

Accepted Answer

The answer of An order for 110 units of Product...

Question 10

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 20 units of N on hand.What are the net requirements for N?
A)150
B)170
C)300
D)320
E)440

Accepted Answer

The answer of An order for 110 units of Product...

Question 11

In MRP,the number of units projected to be available at the beginning of each time period refers to:
A)net requirements.
B)scheduled receipts.
C)planned order releases.
D)projected on hand.
E)the amount necessary to cover a shortage.

Accepted Answer

The number of units projected to be available at the beginning of each time period refers to the projected on hand inventory. This is a key input in the MRP system as it helps in calculating the net requirements and determining if any planned order releases are necessary. Scheduled receipts are the quantity of materials that are expected to arrive in a particular time period, while planned order releases are the quantity of materials that need to be ordered to fulfill the net requirements. The amount necessary to cover a shortage is the safety stock that is maintained to mitigate any unexpected demand variability.

Question 12

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 amount needed, which is 100, and the net requirement is the amount needed minus the amount already in stock, which is 90 (100-10).

Question 13

Distortion in MRP systems can be minimized when safety stock is held at the:
A)purchased component or raw material level.
B)work-in-process level.
C)finished goods level.
D)A and B
E)A and C

Accepted Answer

Holding safety stock at both the purchased component/raw material level and the finished goods level can help minimize the distortion in MRP systems. Safety stock at the purchased component/raw material level can help account for variability in supplier lead times and ensure that there are enough inputs to support production. Safety stock at the finished goods level can help account for variability in demand and ensure that there are enough finished goods available to fulfill customer orders. Holding safety stock at the work-in-process level may not be as effective because it does not account for variability in either supplier lead times or demand.

Question 14

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand.
(a)Calculate the net requirements for M.
(b)Calculate the gross requirements for N.
(c)Calculate the net requirements for N.

Accepted Answer

The answer of An order for 120 units of Product...

Question 15

Which of the following statements regarding the gross material requirements plan is TRUE?
A)It shows total demand for an item.
B)It shows when an item must be ordered from a supplier or when production must be started.
C)It combines a master production schedule with the time-phased schedule.
D)It requires several inputs,including an accurate bill of material.
E)All of the above are true.

Accepted Answer

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

Question 16

Which of the following best describes a gross material requirements plan?
A)a schedule that shows total demand for an item,and when it must be ordered from a supplier or when production must be started
B)an intermediate range plan for the scheduling of families of products
C)a chart illustrating whether capacity has been exceeded
D)a table that corrects scheduled quantities for inventory on hand
E)a schedule showing which products are to be manufactured and in what quantities

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. This plan takes into account forecasted demand, customer orders, and inventory levels to determine the required materials to meet production goals.

Question 17

If safety stock is desired,it should be built into which portion of MRP?
A)module level
B)purchased component
C)raw materials
D)finished goods
E)all of the above

Accepted Answer

Safety stock can be built into any level of the MRP system, including module level, purchased components, raw materials, and finished goods, depending on where variability and uncertainty in demand or supply are expected.

Question 18

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 19

(a)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made?
(b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

Accepted Answer

The answer of (a)Consider the product structure shown below.Assuming 1...

Question 20

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 1 week,when and how large of an order should be placed to meet the requirement of 300 As?
A)Week 1,300 As
B)Week 1,40 As
C)Week 5,40 As
D)Week 4,40 As
E)Week 4,300 As

Accepted Answer

The answer of It is week 1 and there are...

Quiz 14: Material Requirements Planning Mrpand ERP

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

When safety stock is deemed absolutely necessary,the usual policy is to build it into (increase)the inventory requirement of the MRP logic.

Consider the following product structure. If the demand for product A is 30 units,and there are 10 units of B on hand and none of C,how many units of part D will be needed?

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

An order for 110 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?

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

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?

An order for 110 units of Product A has been made.There are currently 60 units of Product A on hand.Each A requires 2 units of Part B.There are 30 units of B available. (a)Calculate the net requirements for A. (b)Calculate the gross requirements for B. (c)Calculate the net requirements for B.

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 20 units of N on hand.What are the net requirements for N?

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

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.

Distortion in MRP systems can be minimized when safety stock is held at the:

An order for 120 units of Product M has been made.There are currently 30 units of Product M on hand.Each M requires 4 units of Component N.There are 20 units of N on hand. (a)Calculate the net requirements for M. (b)Calculate the gross requirements for N. (c)Calculate the net requirements for N.

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

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

If safety stock is desired,it should be built into which portion of MRP?

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

(a)Consider the product structure shown below.Assuming 1 A is to be made,how many units of each of the other items would need to be made? (b)If there are 20 of every item except A in on-hand inventory,how many As can be assembled?

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 1 week,when and how large of an order should be placed to meet the requirement of 300 As?