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Fundamentals of Operations Management, 4/e
Mark M. Davis, Bentley College
Nicholas J. Aquilano, University of Arizona
Richard B. Chase, USC, School of Business

Inventory Systems for Dependent Demand

Multiple Choice Quiz



1

Material Requirements Planning is intended to replace the older techniques of determining economic order quantities.
A)True
B)False
2

Lot-for-lot sizes are determined through the use of the least total cost method.
A)True
B)False
3

The Master Production Schedule which is input to the MRP program is automatically corrected when infeasible final loads on the productive system are generated.
A)True
B)False
4

It is generally believed by experts that MRP and JIT are incompatible.
A)True
B)False
5

The reason for low level coding in MRP is:
A)To show the relative importance of component items
B)To make it easier for the computer to search
C)To show the offset lead times in perspective
D)So that the transaction file can be updated easily
6

Product explosion refers to:
A)Calculation of the required materials based on final assembly needs
B)System nervousness
C)Dynamic characteristics of MRP
D)System sensitivity
E)Creating a time-phased schedule
7

Which of the following is NOT essential for computational procedures of MRP?
A)Planned order release of component equals gross requirement of parent
B)Netting out on hand quantities
C)Time phasing requirements
D)Offsetting for lead times
E)Level-by-level explosion
8

Which one of the following statements about the Master Production Schedule is FALSE?
A)It is the major input to Materials Requirements Plan
B)Specific materials are planned at this stage
C)Marketing and Operations are both involved at the Master Production Schedule level
D)Statistical inventory control methods can be used in this plan
9

MRP systems are:
A)Appropriate for all end items in the product line
B)Intended to be used for independent demand items
C)Intended to reduce inventory requirements, production lead times, and delivery times to customers
D)Intended to determine an appropriate master production schedule
E)Substitutes for fixed order point/order quantity systems
10

The three major inputs to an MRP system are the:
A)MPS, inventory status record, and product structure record
B)Bill of materials, inventory status record, and production structure record
C)Shop order, work orders, and reschedule notices
D)On hand, on order, and lead time
11

In an MRP system, component demand is:
A)Forecasted
B)Established by the master production schedule
C)Calculated by the MRP system from the master production schedule
D)ignored
12

Today MRP is most commonly the:
A)Manufacturing component of supply chain management software
B)Marketing component of supply chain management software
C)Manufacturing component of enterprise resource planning software
D)Marketing component of enterprise resource planning software
E)Human resources component of enterprise resource planning software




McGraw-Hill/Irwin