Oper3100 Exam2 Chp18

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hydeab
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265027
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Oper3100 Exam2 Chp18
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2014-03-04 11:30:49
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Operations Management Chp18
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Operations Management
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Exam 2 Chp18 testbank
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  1. A BOM file is also called which of the following?

    (p. 604)
    Product structure tree. The BOM file is often called the product structure file or product tree because it shows how a product is put together.
  2. Which of the following industry types has high expected benefits from the application of MRP?

    (p. 601)
    Assemble-to-stock. See exhibit 18.3.
  3. Which of the following industry types has high expected benefits from the application of MRP?

    (p. 601)
    Assemble-to-order. See exhibit 18.3.
  4. Which of the following industry types will not benefit greatly from the application of MRP?

    (p. 601)
    Fabricate-to-order. See exhibit 18.3.
  5. A product structure tree can do which of the following?
    (p. 603)
    Help to compute component usage. The BOM file is often called the product structure file or product tree because it shows how a product is put together. It contains the information to identify each item and the quantity used per unit of the item of which it is a part.
  6. Which of the following is an input to the master production schedule (MPS)?
    (p. 598- 599)
    The aggregate plan. Although the aggregate plan provides the general range of operation, the master scheduler must specify exactly what is to be produced.
  7. Which of the following is one of the main purposes of a MRP system?
    (p. 598)
    To determine the amount of materials needed to produce each end item. MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. MRP also provides the schedule specifying when each of these items should be ordered or produced.
  8. One of the main purposes of a MRP system is which of the following?
    (p. 598)
    • Develop schedules specifying when each component should be ordered or produced. 
    • MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. MRP also provides the schedule specifying when each of these items should be ordered or produced.
  9. Which of the following is most closely related to the reason a firm might implement MRP?
    (p. 598)
    So they can order the right parts. MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. MRP also provides the schedule specifying when each of these items should be ordered or produced.
  10. MRP systems seek to achieve which of the following?
    (p. 598)
    Determine the number of dependent demand items needed. MRP is based on dependent demand. Dependent demand is caused by the demand for a higher-level item.
  11. Which of the following is an input to the master production schedule?
    (p. 606)
    Forecasts of random demand from customers. Demand originates from two sources: regular customers that place firm orders and unidentified customers that make the normal random demands for these items. The random requirements were forecast using one of the usual techniques described in Chapter 15 and past demand data.
  12. Which of the following is an input to the master production schedule?
    (p. 602)

    A. Bill of materials (BOM) file
    B. Inventory records file
    C. Exception reports
    D. Planned-order schedules

    E. None of the above
    None of the above. See exhibit 18.4
  13. Which of the following is an input file necessary to run an MRP system?
    (p. 602)
    Bill of materials (BOM) file. These three sources—master production schedule, bill of materials file, and inventory records file— become the data sources for the material requirements program, which expands the production schedule into a detailed order scheduling plan for the entire production sequence.
  14. Which of the following is an input file necessary to run an MRP system?
    (p. 601)
    Inventory records file. The material requirements planning portion of manufacturing activities most closely interacts with the master schedule, bill of materials file, inventory records file, and the output reports as shown in Exhibit 18.4.
  15. Which of the following is not a production activity report generated by MRP? ␣ ␣
    A. Exception report
    B. Planning report
    C. Performance control report
    D. Planned-order schedules
    E. Bill of materials report
    Bill of materials report. See exhibit 18.4 on page 602
  16. In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following? 
    (p. 604)
     
    Time buckets. The MRP program accesses the status segment of the record according to specific time periods (called time buckets in MRP slang). These records are accessed as needed during the program run.
  17. 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? 
    (p. 604)
    Peg record file. The MRP program allows the creation of a peg record file either separately or as part of the inventory record file. Pegging requirements allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand.
  18. We would expect to see which of the following in an MRP system's inventory status file?
    (p. 604)
    Scrap parts. The inventory status file is kept up to date by posting inventory transactions as they occur. These changes occur because of stock receipts and disbursements, scrap losses, wrong parts, canceled orders, and so forth.
  19. In a typical inventory status record which of the following would you not expect to see?
    (p. 604)
    Lost items. The inventory status file is kept up to date by posting inventory transactions as they occur. These changes occur because of stock receipts and disbursements, scrap losses, wrong parts, canceled orders, and so forth.
  20. Which of the following is considered a primary report in an MRP system?
    (p. 602)
    Planned order schedules. See exhibit 18.4.
  21. Which of the following is considered a secondary report in an MRP system?
    (p. 602)
    Exceptions reports. See exhibit 18.4.
  22. Which of the following is considered a primary report in an MRP system?
    (p. 602)
    Planned order schedule. See exhibit 18.4.
  23. 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?
    (p. 605)
    1200. 1,250 - 50 = 1,200. Net requirements are the amounts that are needed week by week in the future over and above what is currently on hand or committed to through an order already released and scheduled.
  24. 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? 
    (p. 605)
     
    500. 1,000 - 500 = 500. Net requirements are the amounts that are needed week by week in the future over and above what is currently on hand or committed to through an order already released and scheduled.
  25. 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? 

    (p. 605)
    3000. Using net requirements, the program calculates when orders should be received to meet these requirements. This can be a simple process of just scheduling orders to arrive according to the exact net requirements or a more complicated process where requirements are combined for multiple periods. This schedule of when orders should arrive is referred to as "planned-order receipts." Since there is typically a lead time associated with each order, the next step is to find a schedule for when orders are actually released. Offsetting the "planned-order receipts" by the required lead time does this. This schedule is referred to as the "planned-order release." 5,000 - 1,200 - 800 = 3,000.
  26. 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? 
    (p. 605)
     
    70. Using net requirements, the program calculates when orders should be received to meet these requirements. This can be a simple process of just scheduling orders to arrive according to the exact net requirements or a more complicated process where requirements are combined for multiple periods. This schedule of when orders should arrive is referred to as "planned-order receipts." Since there is typically a lead time associated with each order, the next step is to find a schedule for when orders are actually released. Offsetting the "planned-order receipts" by the required lead time does this. This schedule is referred to as the "planned-order release." 670 - 600 = 70.
  27. Which of the following can be used for lot sizing in an MRP system?
    (p. 611)
    Least unit cost. The lot-sizing techniques presented are lot-for-lot (L4L), economic order quantity (EOQ), least total cost (LTC), and least unit cost (LUC). Low level coding, time bucket size, inventory record files and peg inventory are not lot sizing techniques but lot-for-lot is. Hence C is the correct answer.
  28. Which of the following is not a lot sizing technique used in MRP systems?
    (p. 611)
    Warehouse loading factor (WLF). The lot-sizing techniques presented are lot-for-lot (L4L), economic order quantity (EOQ), least total cost (LTC), and least unit cost (LUC). Warehouse loafing factor is not a lot sizing technique.
  29. Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? 
    (p. 612)
     
    Minimized carrying costs. 

    • 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.
    • Because the logic of lot-for-lot says the production quantity will exactly match the required quantity, no inventory will be left at the end. Without any inventory to carry over into the next week, there is zero holding cost. However, lot-for-lot requires a setup cost each week. Lot-for-lot causes high setup costs.
  30. If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size? 
    (p. 568)
     
    350. From equation 17.3, Q = 350 = Square root of (2 x 6,125 x50/5)
  31. If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size? 
    (p. 568)
     
    200. From equation 17.3, Q = 200 = Square root of (2 x 12,000 x25/15)
  32. Which of the following is a dynamic lot-sizing technique that 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? 
    (p. 613)
    Least total cost. The least total cost method is a dynamic lot-sizing technique that 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.
  33. Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal? 
    (p. 613)
    Least total cost. The least total cost method is a dynamic lot-sizing technique that 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.
  34. Which of the following 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?
    (p. 614)
    Least unit cost. 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.

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