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

False 

Projected available balance is the amount of inventory (not just unsold finished goods) that is expected as of the end of a period

False

The requirements of dependent demand items tend to become more and more lumpy as we go farther down into the product creation sequence

Flase

This BOM file is one of the three main inputs to the MRP program. (The other two are the master schedule and the inventory records file.)

16. An output of MRP is a bill of materials (BOM) file.

18. Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

False

A super bill of materials includes items with fractional options.

False

The MRP program performs its analysis from the top of the product structure downward, calculating requirements level by level

False 

Net change systems are "activity" driven and requirements and schedules are updated whenever a transaction is processed that has an impact on the item. Net change enables the system to reflect in "real time" the exact status of each item managed by the system

False 

Determination of lot sizes in an MRP system is a complicated and difficult problem

False

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

• Sets planned orders to exactly match the net requirements.
• Produces exactly what is needed each week with none carried over into future periods.
• Minimizes carrying cost.
• Does not take into account setup costs or capacity limitations

False 

EOQ assumes that parts are used continuously during the period. The lot sizes generated by EOQ do not always cover the entire number of periods. For example, the EOQ might provide the requirements for 4.6 periods (when another EOQ would be needed)

False

The least unit cost method is a dynamic lot-sizing technique that 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

False

Material Requirements Planning

False

Material requirements planning is the key piece of logic that ties the production functions together from a material planning and control view.
Page 293: (MRP is an) integral part of enterprise resource planning that ties together all the major functions of a firm

False

Management defines time fences as periods of time having some specified level of opportunity for the customer to make changes

36. A BOM file is also called which of the following?

36. A BOM file is also called which of the following?

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

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

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

40. A product tree can do which of the following?

41. Which of the following is an input to the master production schedule (MPS)?

42. Which of the following is one of the main purposes of a MRP system?

43. One of the main purposes of a MRP system is which of the following?

44. Which of the following is most closely related to the reason a firm might implement MRP?

45. MRP systems seek to achieve which of the following?

46. Which of the following is an input to the master production schedule?

47. Which of the following is an input to the master production schedule?

48. Which of the following is an input file necessary to run an MRP system?

49. Which of the following is an input file necessary to run an MRP system

50. Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?

Peg Record File

51. We would expect to see which of the following in an MRP system's inventory status file?

52. In a typical inventory status record which of the following would you not expect to see

53. Which of the following is considered a primary report in an MRP system?

55. Which of the following is considered a primary report in an MRP system?

56. Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

57. Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?

59. Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

60. Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?

Minimized Carrying costs

False 

MRP is most valuable in industries where a number of products are made in batches using the same productive equipment

Which of the following is considered a secondary report in an MRP system

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200 and planned receipts are 800?