Operations Management - Chapter 12 Exam
Operations Management - Chapter 12 - Help Test Questions
1. 1. MRP works best if the inventory items have dependent demand.
True False
TRUE
MRP is best for dependent demand scenarios.
2. 2. Low level coding represents items less than $18 per unit.
True False
FALSE
Low-level coding codes items at their lowest BOM levels.
3. 3. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.
True False
FALSE
Dependent demand is more lumpy.
4. 4. Lumpy demand for components results primarily from the periodic scheduling of batch production.
True False
TRUE
Batch production leads to lumpy demand for components.
5. 5. MRP is used within most MRP II and ERP systems.
True False
TRUE
MRP II and ERP systems incorporate MRP.
6. 6. The master production schedule states which end items are to be produced, in addition to when and how many.
True False
TRUE
These are critical inputs into MRP.
7. 7. Net requirements equal gross requirements minus safety stock.
True False
FALSE
If safety stock is required, net requirements will be higher.
8. 8. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.
True False
TRUE
This ensures that materials plans can be adequately formulated.
9. 9. Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.
True False
TRUE
Management must make more detailed capacity requirements planning to determine whether these more specific capacity requirements can be met and some adjustments in the master production schedule may be required.
10. 10. MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate.
True False
FALSE
MRP may lead to an infeasible production plan if capacity requirements are
1. 1. MRP works best if the inventory items have dependent demand.
True False
TRUE
MRP is best for dependent demand scenarios.
2. 2. Low level coding represents items less than $18 per unit.
True False
FALSE
Low-level coding codes items at their lowest BOM levels.
3. 3. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.
True False
FALSE
Dependent demand is more lumpy.
4. 4. Lumpy demand for components results primarily from the periodic scheduling of batch production.
True False
TRUE
Batch production leads to lumpy demand for components.
5. 5. MRP is used within most MRP II and ERP systems.
True False
TRUE
MRP II and ERP systems incorporate MRP.
6. 6. The master production schedule states which end items are to be produced, in addition to when and how many.
True False
TRUE
These are critical inputs into MRP.
7. 7. Net requirements equal gross requirements minus safety stock.
True False
FALSE
If safety stock is required, net requirements will be higher.
8. 8. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.
True False
TRUE
This ensures that materials plans can be adequately formulated.
9. 9. Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.
True False
TRUE
Management must make more detailed capacity requirements planning to determine whether these more specific capacity requirements can be met and some adjustments in the master production schedule may be required.
10. 10. MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate.
True False
FALSE
MRP may lead to an infeasible production plan if capacity requirements are