Operations Management: Processes and Supply Chains, 10e (Krajewski et al.

) Chapter 16 Resource Planning

1) An ERP system revolves around a single comprehensive database that is made available across the entire organization. Answer: TR E Re!erence: Enterprise Resource Planning "i!!iculty: Easy #eywords: enterprise resource planning$ ERP %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) () )ompanies that !ully customize their ERP implementation reap the greatest rewards !rom such systems since they can continue to use the same processes to which all employees are accustomed. Answer: *A%+E Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: enterprise resource planning$ ERP implementation %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) -) A !irm.s e/isting$ older in!ormation system is called a 0legacy system.0 Answer: TR E Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: enterprise resource planning$ legacy system 1) ,aterial re2uirements planning ',RP) is a computerized in!ormation system developed speci!ically to aid in managing dependent demand inventory and scheduling replenishment orders. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: material re2uirements planning$ ,RP 3) A materials re2uirements planning ',RP) e/plosion occurs when the system is bombarded with too many orders to schedule at one time. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: material re2uirements planning$ ,RP e/plosion 4) A parent is any item manu!actured !rom one or more components. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: parent$ component

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:) "ependent demand !or an item occurs because the 2uantity re2uired !or it varies with the production plans o! one or more parents. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: dependent demand$ parent ;) A component is an item that may go through one or more operations to be trans!ormed into or become part o! one or more parents. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: component$ parent$ trans!orm <) 8! the demand !or an independent demand item is continuous and uni!orm$ so will the planned order releases o! its components. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: dependent demand$ continuous 17) A bill o! materials is a record o! all the components o! an item$ the parent5component relationships$ and the usage 2uantities derived !rom engineering and process designs. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate 11) An end item in a =&, is typically both a component and a parent. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ bill o! material$ en item 1() Part commonality re!ers to the degree to which a component has more than one immediate parent. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: part commonality$ component$ parent 1-) Part commonality tends to increase inventory costs. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: part commonality$ inventory

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11) >ross re2uirements are the total demand derived !rom all parent production plans. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: gross re2uirements$ demand$ parent 13) A bill o! materials '=&,) shows all o! the components o! an item$ the parent?component relationships$ usage 2uantities$ and lot size derived !rom engineering and process designs. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ bill o! materials$ parent$ component 14) An intermediate item must have at least one parent and at least one component. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: intermediate item$ parent$ component 1:) The master production schedule ',P+) is the part o! the material re2uirements planning that speci!ies when components must be ordered or assembled. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: master production schedule$ ,P+$ material re2uirements plan 1;) Available5to5promise inventory is the amount o! end items that mar@eting can promise to customers by a certain date. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: ATP$ available to promise inventory$ ,P+$ master production schedule 1<) The portion o! the master production schedule !arthest into the !uture is o!ten !rozen to reduce !orecasting re2uirements. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+$ master production schedule$ !reezing (7) The proAected on5hand inventory in the ,P+ ta@es into account scheduled receipts$ but not planned receipts. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+$ master production schedule$ !reezing

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(1) The proAected on5hand inventory in the ,P+ ta@es into account customer orders 'boo@ed) as well as the ,P+ 2uantities. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+$ master production schedule$ proAected on5hand inventory (() >ross re2uirements are the total demand derived !rom all parent production plans. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: gross re2uirements (-) Available5to5promise 'ATP) 2uantities are only shown in the !irst period 'i! the proAected on5hand inventory is greater than zero in the !irst period)$ and subse2uently in periods when the ,P+ 2uantity is greater than 7. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: Available5to5promise 2uantities$ ATP$ ,P+ 2uantity (1) Planned receipts are estimates o! the amount o! inventory available each wee@ a!ter gross re2uirements have been satis!ied. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned receipts$ proAected on5hand inventory (3) A planned order release indicates when an order !or a speci!ied 2uantity o! an item should be issued. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release (4) *or items manu!actured in5house$ one component o! the planned lead time is waiting time. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned lead time$ waiting time (:) The periodic order 2uantity 'P&B) rule tends to @eep more inventory on hand than the lot5!or5lot rule$ but less inventory on hand than the !i/ed order 2uantity rule. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: periodic order 2uantity rule$ !i/ed order 2uantity rule$ lot !or lot rule$ P&B$ *&B$ %1%

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(;) %ot5!or5lot '%1%) is a rule that maintains the same order 2uantity each time an order is issued. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: lot5!or5lot rule$ %1%$ order 2uantity (<) ,RP 88 ties ,RP to the company.s !inancial system. Answer: TR E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ ,RP 88$ material re2uirements planning -7) The process with the least capacity is called a capacity constrained resource i! its output is less than mar@et demand. Answer: *A%+E Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: "=R$ drum$ bu!!er$ rope$ ))R$ capacity constrained resource -1) The bill o! resources '=&R) is a record o! parent5component relationships and all the re2uired materials$ e2uipment time$ sta!!$ and other resources needed$ including the usage 2uantities. Answer: TR E Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: =&R$ bill o! resources -() A companywide process that cuts across traditional !unctional areas$ business units$ geographic regions$ and product lines is a'n): A) enterprise process. =) master production scheduling process. )) @inetic process. ") !ull5business process. Answer: A Re!erence: Enterprise Resource Planning "i!!iculty: Easy #eywords: enterprise process %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) --) Entering new in!ormation in the database o! an ERP system is a'n): A) data pac@et. =) transaction. )) record. ") !ile. Answer: = Re!erence: Enterprise Resource Planning "i!!iculty: Easy #eywords: enterprise resource planning$ transaction$ ERP %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) -1) A !ront5o!!ice module !or an ERP system includes: A) manu!acturing. =) accounting and !inance. )) sales and mar@eting. ") human resources. Answer: ) Re!erence: Enterprise Resource Planning "i!!iculty: Easy
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#eywords: enterprise resource planning$ ERP$ !ront o!!ice %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) -3) Chich o! the !ollowing is a bac@5o!!ice module in a typical ERP systemD A) customer service =) sales )) mar@eting ") human resources Answer: " Re!erence: Enterprise Resource Planning "i!!iculty: Easy #eywords: enterprise resource planning$ ERP$ bac@ o!!ice %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) -4) Chich o! the !ollowing statements about ERP systems is bestD A) Recent studies have shown that the most success!ul ERP implementations use standardized systems. =) ERP systems written in E,% re2uire complete replacements o! a company.s legacy systems. )) A company must adapt their ERP system to their e/isting processes in order !or all employees to gain a bene!it !rom the new system. ") An ERP system re2uires a regular synchronization o! all o! the module databases$ which is usually accomplished automatically when the business is not conducting business. Answer: A Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: enterprise resource planning$ ERP %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) -:) Chich o! the !ollowing is F&T an e/ample o! dependent demand itemsD A) shoelaces$ shoes =) wheels$ car )) cara!es$ co!!eema@ers ") ice s@ates$ roller s@ates Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: dependent demand

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-;) Any item manu!actured !rom one or more components is a'n): A) parent. =) component. )) intermediate item. ") purchased item. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: parent$ component -<) Chich best de!ines the gross re2uirements !or a component itemD A) the !orecasted customer demand !or the component =) the amount o! sa!ety stoc@ needed to bu!!er against uncertainties )) the sum o! gross re2uirements !or all parents o! the component ") the total demand !or the component derived !rom all immediate parents Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: component$ parent 17) ,RP can be used to best advantage under which one o! the !ollowing circumstancesD A) when the item.s demand depends only on customer demand =) when the item.s demand is uni!orm )) when the item.s demand is constant ") when the item.s demand depends on the production plans o! its parent's). Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 11) Chich o! the !ollowing statements about ,RP is TR ED A) To be classi!ied as a success!ul ,RP user$ a company must use either the %1% or P&B rules !or lot sizing. =) ,RP gross re2uirements !or a parent item are e2ual to the planned order releases o! its components. )) ,RP logic is based on the logic o! uni!orm$ continuous demand$ and item independence. ") ,RP gross re2uirements !or a component depend on the planned order releases o! its immediate parents. Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ component %earning &utcome: Apply the process o! materials re2uirements planning ',RP)

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1() Chich one o! the !ollowing is an input to the ,RP systemD A) shop5!loor schedules =) !inancial reports )) master production schedule ") purchasing orders Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ input %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 1-) 8! a planned receipt !or an item is due in wee@ 4 and the item.s lead time is two wee@s$ in which wee@ will the corresponding planned order release occurD A) wee@ ( =) wee@ 1 )) wee@ 4 ") wee@ ; Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order receipt$ planned order release 11) Chich one o! the !ollowing statements about lot5sizing rules is TR ED A) The periodic order 2uantity 'P&B) rule see@s to create inventory remnants. =) 8! the P&B rule is used$ an item.s lot size can vary each time an order is placed. )) The lot5!or5lot '%1%) rule is a special case o! the !i/ed5order 2uantity '*&B) rule. ") All lot5sizing rules see@ to minimize inventory levels. Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: lot$ sizing$ P&B$ periodic order 2uantity 13) Chich one o! the !ollowing is an ,RP lot5sizing rule that attempts to minimize the amount o! average inventoryD A) periodic order 2uantity 'P&B)$ with P G ( =) !i/ed order 2uantity '*&B) )) economic order 2uantity 'E&B) ") lot !or lot '%1%) Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ %1% %earning &utcome: Apply the process o! materials re2uirements planning ',RP)

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14) Chich statement on ,RP e/plosion is bestD A) 8t calculates the total number o! subassemblies$ components$ and raw materials needed !or each parent item. =) 8t calculates the total number o! raw materials to be purchased !rom all suppliers. )) 8t calculates the total number o! parts to be produced !or each parent item. ") 8t calculates the total number o! parts needed to be produced less the number o! parts on hand !or each parent item. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ e/plosion %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 1:) Chich o! the !ollowing statements concerning ,RP is TR ED A) "ependent5demand items tend to e/perience relatively constant demand rates. =) ,RP systems use independent demands !or each component item. )) )apacity re2uirements planning ')RP) uses open orders 'scheduled receipts) and planned order releases to estimate capacity re2uirements !or critical wor@stations. ") The most accurate way to !orecast dependent demand is to e/amine past usage rates. Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ )RP$ capacity re2uirements planning %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 1;) Chich one o! the !ollowing is a !eature o! ,RP 88$ but not available in basic ,RP systemsD A) !inancial proAections =) action notices )) dispatch lists ") capacity reporting Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ ,RP 88 1<) Chich o! the !ollowing statements about ,RP 88 is bestD A) 8t is computationally !aster than regular ,RP. =) 8t is limited only to aiding order5launching decisions. )) 8t incorporates in!ormal systems through the use o! e/pert systems technology. ") 8t provides more e/tensive in!ormation than ,RP because it is tied to the company.s !inancial system. Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP 88$ manu!acturing resource planning

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Table 16.1

37) se the in!ormation in partially completed Table 14.1. Chat is the proAected on5hand inventory in wee@ 4D A) 7 units =) 13 units )) -- units ") 3- units Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ start$ proAected on5hand inventory AA)+=: Analytic s@ills 31) se the in!ormation in partially completed Table 14.1. 8n which wee@ does the second nonzero ,P+ 2uantity occurD A) wee@ 1 =) wee@ ( or )) wee@ 1 or 3 ") wee@ 4$ :$ or ; Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ start$ ,P+ 2uantity AA)+=: Analytic s@ills 3() se the in!ormation in partially completed Table 14.1. Chat is the ,P+ start 2uantity in wee@ 1D A) 7 units =) (7 units )) -7 units ") 47 units Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ start 2uantity AA)+=: Analytic s@ills 3-) se the in!ormation in partially completed Table 14.1. Chat is the available5to5promise 'ATP) inventory in wee@ 1D A) 7 units =) 17 units )) 13 units ") 33 units Answer: ) Re!erence: ,aterial Re2uirements Planning
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"i!!iculty: ,oderate #eywords: ,P+ start 2uantity$ available5to5promise inventory AA)+=: Analytic s@ills 31) se the in!ormation in partially completed Table 14.1. Chat is the available5to5promise 'ATP) inventory in wee@ :D A) 7 units =) -- units )) 17 units ") 47 units Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ start 2uantity$ available5to5promise inventory$ ATP AA)+=: Analytic s@ills Table 16.2

33) se the in!ormation in partially completed Table 14.(. Chat is the proAected on5hand inventory in wee@ 3D A) 7 units =) -3 units )) 17 units ") :3 units Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: proAected on5hand inventory$ ,P+ AA)+=: Analytic s@ills 34) se the in!ormation in partially completed Table 14.(. 8n which wee@ does the second nonzero ,P+ 2uantity occurD A) wee@ 1 or ( =) wee@ - or 1 )) wee@ 3 or 4 ") wee@ : or ; Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ 2uantity. ,P+ AA)+=: Analytic s@ills 3:) se the in!ormation in partially completed Table 14.(. Chat is the ,P+ start 2uantity in wee@ 1D A) 7 units =) (7 units
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)) 17 units ") ;7 units Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+ start 2uantity AA)+=: Analytic s@ills 3;) se the in!ormation in partially completed Table 14.(. Chat is the available5to5promise 'ATP) inventory in wee@ 1D A) 7 units =) 17 units )) 13 units ") 37 units Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: available5to5promise 'ATP) inventory$ ,P+ AA)+=: Analytic s@ills 3<) se the in!ormation in partially completed Table 14.(. Chat is the available5to5promise 'ATP) inventory in wee@ 4D A) 7 units =) -3 units )) 13 units ") ;7 units Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: available5to5promise 'ATP) inventory$ ,P+ AA)+=: Analytic s@ills

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47) se the !ollowing partially completed ,RP record to answer the 2uestion.

Chat are the 2uantities o! planned order releases !or item A=) !or the !irst !ive wee@s 'wee@s 1$ ($ -$ 1$ and 3)D A) -7$ 7$ 47$ 7$ 113 =) 47$ 7$ 113$ 7$ 7 )) 7$ -7$ 47$ 7$ 7 ") -7$ 7$ 47$ 113$ 7 Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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41) se the !ollowing partially completed ,RP record to answer the 2uestion.

Chat are the 2uantities o! planned order releases !or item EHI !or the !irst si/ wee@s 'wee@s 1$ ($ -$ 1$ 3$ and 4)D A) (7$ -7$ 7$ 17$ (7$ 7 =) -3$ 7$ 47$ 7$ 7$ 7 )) 3$ -7$ 7$ 17$ (7$ 7 ") -3$ 7$ 7$ 17$ (7$ 7 Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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4() se the !ollowing partially completed ,RP record to answer the 2uestion.

Chat is the planned order release 2uantity in wee@ 1D A) 7 units =) greater than 7 units but !ewer than or e2ual to 37 units )) greater than 37 units but !ewer than or e2ual to 177 units ") greater than 177 units Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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Table 16.3

4-) se the in!ormation in partially completed Table 14.-. 8n which wee@ will the second planned order release occurD A) wee@ 1 =) wee@ ( )) wee@ ") wee@ 1$ 3$ 4$ :$ or ; Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills 41) se the in!ormation in Table 14.-. Chat is the planned order release in wee@ 1D A) 17 units =) 1;7 units )) ((7 units ") (17 units Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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43) se the !ollowing ,RP record to answer the 2uestion.

Chat will be the proAected on5hand inventory 2uantity in wee@ :D A) !ewer than or e2ual to -7 units =) greater than -7 units but !ewer than or e2ual to 47 units )) greater than 47 units but !ewer than or e2ual to <7 units ") greater than <7 units Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: proAected on5hand inventory %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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44) se the !ollowing ,RP record to answer the 2uestion.

Chat are the 2uantity and the wee@ o! the !irst planned order releaseD A) 137 unitsJ wee@ 1 =) 137 unitsJ wee@ ( )) (17 unitsJ wee@ 1 ") (17 units: wee@ ( Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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4:) se the !ollowing ,RP record to answer the 2uestion.

Chich one o! the !ollowing statements about item BR+ is TR ED A) The !irst planned order release occurs in wee@ 1. =) The !irst planned receipt occurs in wee@ 1. )) The second planned order release 2uantity is <7 units. ") The total planned order release 2uantity 'summing up all eight wee@s) is 1<7 units. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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Table 16. )onsider the !ollowing ,P+$ =&,$ and inventory data. =lan@ ,RP records are provided at the end o! this e/am. ,aster Production +chedule: The !ollowing table shows the ,P+ start 2uantities.

=ill o! ,aterial 5End item A uses 1 each o! component ) and 1 each o! subassembly ". 5+ubassembly " uses ( each o! component E and ( each o! component *. 5End item = uses 1 each o! component ) and ( each o! component *. +elected 8nventory "ata

4;) se the in!ormation in Table 14.1. Chich one o! the !ollowing statements about item ) is =E+TD A) The 1775unit scheduled receipt o! (77 units in wee@ 1 can be delayed until wee@ ( without delaying item ".s !irst planned order release. =) 8ts second planned order release is !or (77 units in wee@ 4. )) 8t has a planned receipt o! 1;7 units in wee@ 3. ") An order !or 47 units should be placed now 'in wee@ 1). Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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4<) se the in!ormation in Table 14.1. Chich one o! the !ollowing statements on item ) is TR ED A) 8t has a scheduled receipt o! 37 units in wee@ 1. =) 8ts gross re2uirement in wee@ 4 is 177 units. )) 8ts proAected on5hand inventory is 7 units !or wee@ 1 through wee@ 4. ") 8ts !irst planned order release is !or 177 units in wee@ 1. Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: scheduled receipt$ gross re2uirement$ proAected on5hand inventory %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :7) se the in!ormation in Table 14.1. Chich one o! the !ollowing statements about item * is =E+TD A) The gross re2uirement in wee@ 1 is 177 units. =) 8ts !irst planned receipt is !or 1(7 units in wee@ 1. )) 8ts 1775unit scheduled receipt in wee@ 1 could be delayed to wee@ ( without delaying the planned order release !or product =. ") 8ts !irst planned order receipt is !or -;3 units in wee@ 1. Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: gross re2uirement$ planned receipt$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :1) se the in!ormation in Table 14.1. Chich one o! the !ollowing statements about item E is TR ED A) There are no planned order releases in wee@s 1 though wee@ 4. =) There is a planned receipt o! (37 units in wee@ (. )) There is one planned receipt !or the ne/t 4 wee@s. ") There is a planned order release o! (37 units in wee@ -. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: planned order release$ action notice %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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Table 16.!

:() se the in!ormation in Table 14.3. Chich one o! the statements concerning item R+T is TR ED A) The !irst planned receipt occurs in wee@ 3. =) The planned order release in wee@ ( is !or 177 units. )) The planned receipt in wee@ : is ;7 units. ") There are e/actly two planned order releases needed !or the !irst ; wee@s. Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned receipt$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :-) se the in!ormation in Table 14.3. Chich o! the statements concerning item R+T is TR ED 'E/amine each answer independently.) A) 8! the sa!ety stoc@ level were -7 units instead o! 7 units$ the planned receipt in wee@ : would be 117 units. =) 8! the scheduled receipt in wee@ ( must be delayed until wee@ - because o! a capacity shortage$ there would be a planned order release in wee@ 1. )) 8! the sa!ety stoc@ level were (3 units instead o! 7 units$ there would be a planned order release in wee@ (. ") 8! the gross re2uirements !or wee@ ; were 177 units instead o! 47 units$ the proAected on5hand inventory !or wee@ ; would be 7 units. Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: sa!ety stoc@$ planned order release$ scheduled receipt$ gross re2uirement$ proAected on5hand inventory AA)+=: Analytic s@ills :1) se the !ollowing ,RP record to answer the 2uestion.

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Chich one o! the statements concerning item %,F is TR ED A) The scheduled receipt o! ;7 units in wee@ - should be e/pedited so that it is !inished in wee@ (. =) The planned order release 2uantity in wee@ - is ;7 units. )) The planned receipt 2uantity in wee@ 4 is -7 units. ") The proAected on5hand inventory in wee@ ; is :7 units. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: scheduled receipt$ planned order release$ proAected on5hand inventory %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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Table 16.6

:3) se the in!ormation !rom Table 14.4. 8! an *&B o! ;7 units is used$ how many planned order releases are there !or item EHID A) zero or one =) two )) three ") more than three Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: !i/ed order 2uantity$ *&B$ planned order release %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :4) se the in!ormation !rom Table 14.4. 8! an *&B o! 177 units is used$ how many planned order releases are there !or item EHID '9int: The ;75unit scheduled receipt should remain unchanged$ because it has already been released and is being wor@ed on.) A) zero or one =) two )) three ") more than three Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: !i/ed order 2uantity$ *&B$ planned order release$ scheduled receipt %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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::) se the in!ormation !rom Table 14.4. 8! an %1% lot5sizing rule is used$ how many planned order releases are there !or item EHID '9int: The ;75unit scheduled receipt should remain unchanged$ because it has already been released and is being wor@ed on.) A) zero or one =) two )) three ") more than three Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: %1% lot5sizing rule$ %1%$ planned order release$ scheduled receipt %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :;) se the in!ormation !rom Table 14.4. 8! a P&B lot5sizing rule is used$ where P G -$ how many planned order releases are there !or item EHID '9int: The ;75unit scheduled receipt should remain unchanged$ because it has already been released and is being wor@ed on.) A) zero or one =) two )) three ") more than three Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: periodic order 2uantity$ P&B$ planned order release$ scheduled receipt %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills :<) se the in!ormation !rom Table 14.4. Chich lot5sizing rule results in the highest proAected on5hand inventory averaged over wee@s 1 through wee@ 17D A) *&B G 177 =) *&B G :3 )) %1% ") P&B$ P G Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: P&B$ *&B$ %1%$ lot sizing %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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;7) ,anagement wishes to use a P&B lot5sizing rule !or an item that e/periences an average demand o! -7 units per wee@. 8! the desired average lot size is 1(7 units$ what should P beD A) zero or one wee@s =) two or three wee@s )) !our or !ive wee@s ") more than !ive wee@s Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: lot sizing$ P&B %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills ;1) ,anagement wishes to use an *&B lot5sizing rule !or an item based on the economic order 2uantity. 8! the annual demand is 1$(77 units$ the holding cost is K17 per unit per year$ and the setup cost is K37 per lot$ which one o! the !ollowing !i/ed5order 2uantities is most appropriateD A) <7 units =) 117 units )) 1-7 units ") 137 units Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: lot sizing$ *&B %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills Case "tu#$ 16.1 +unshine ,anu!acturing produces three products: E$ H$ I. The production o! these end items is controlled by an ,RP system. Each end item E is assembled with two components o! A and one component o! =. Each end item o! H is assembled with two components o! ) and one component o! A. End item I is assembled !rom one unit o! " and one unit o! )J " is manu!actured !rom one unit o! AJ and ) is manu!actured !rom one unit o! =. ;() se the in!ormation in )ase +tudy 14.1. Chich o! the !ollowing se2uences is an acceptable way to process the inventory records !or components A$ =$ )$ and "D A) A = ) " =) " A = ) )) = A " ) ") ) = " A Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: order processing %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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;-) se the in!ormation in )ase +tudy 14.1. 8! item ) has a manu!acturing lead time o! two wee@s$ and a planned receipt o! 43 units is needed in wee@ 1$ which o! the !ollowing statements is TR ED A) The planned order release in wee@ ( !or item ) is 1-7 units. =) The gross re2uirements !or item = in wee@ 1 is 43 units. )) The gross re2uirements !or item = in wee@ ( is 1-7 units. ") The gross re2uirements !or item = in wee@ ( is 43 units. Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: 9ard #eywords: gross re2uirements %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills Table 16.% Liola Products produces one item with the !ollowing bill o! materials

A recent chec@ o! their inventory reveals the !ollowing 2uantities on hand. &te' A = ) (uantit$ : 4 &te' " E * (uantit$ 1 3 &te' > 9 M (uantit$ (( 13 11

)urrently no scheduled receipts e/ist !or any o! the dependent demand items. ;1) se Table 14.: to answer this 2uestion. 9ow many additional units o! " are needed to produce (7 end itemsD A) !ewer than :3 =) more than :3 but !ewer than <3 )) more than <3 but !ewer than 113 ") more than 113 Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills ;3) se Table 14.: to answer this 2uestion. 9ow many additional units o! M are needed to produce (7 end itemsD A) !ewer than 1:3 =) more than 1:3 but !ewer than (73 )) more than (73 but !ewer than (13 ") more than (13 Answer: = Re!erence: ,aterial Re2uirements Planning
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"i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills ;4) se Table 14.: to answer this 2uestion. 9ow many additional units o! 9 are needed to produce (7 end itemsD A) !ewer than (37 =) more than (37 but !ewer than -37 )) more than -37 but !ewer than 137 ") more than 137 Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills ;:) se Table 14.: to answer this 2uestion. 9ow many additional units o! > are needed to produce (7 end itemsD A) !ewer than 37 =) more than 37 but !ewer than 47 )) more than 47 but !ewer than :7 ") more than :7 Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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;;) se Table 14.: to answer this 2uestion. 9ow many additional units o! > are needed to produce seven end itemsD A) 7 =) 11 )) (( ") -Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills ;<) se Table 14.: to answer this 2uestion. 9ow many additional units o! 9 are needed to produce seven end itemsD A) 1-7 =) 113 )) 147 ") 1:3 Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills <7) se Table 14.: to answer this 2uestion. 9ow many additional units o! M are needed to produce seven end itemsD A) (3 =) -4 )) 1: ") 3; Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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<1) se Table 14.: to answer this 2uestion. 9ow many additional units o! " are needed to produce seven end itemsD A) -=) -7 )) (: ") (1 Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills )igure 16.*

&te' & P )

+'ount : 1( -

&te' * F

+'ount 11 : 1(

&te' " E

+'ount ( ;

8nventory amounts indicated in the table are available to produce the end item indicated in this bill o! materials. <() se *igure 14.; to answer this 2uestion. 9ow many additional units o! E are needed to produce ten end itemsD A) (;1 =) 11( )) :1 ") -3 Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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<-) se *igure 14.; to answer this 2uestion. 9ow many additional units o! " are needed to produce seven end itemsD A) 17 =) 14 )) 4; ") 31 Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills <1) se *igure 14.; to answer this 2uestion. 9ow many additional units o! P are needed to produce ten end itemsD A) 14 =) -; )) (: ") 1Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills <3) se *igure 14.; to answer this 2uestion. 9ow many additional units o! * are needed to produce twelve end itemsD A) (-4 =) (11 )) 1;( ") 1:4 Answer: = Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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<4) se *igure 14.; to answer this 2uestion. 9ow many additional units o! F are needed to produce eighteen end itemsD A) ;( =) <4 )) :7 ") :1 Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: bill o! materials$ =&, %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills <:) Chich o! the !ollowing is F&T used to derive an item.s gross re2uirementsD A) the ,P+ !or immediate parents that are end items =) the planned order releases !or immediate parents below the ,P+ level )) the ,P+ components that are not purchased items ") any other re2uirements not originating in the ,P+$ such as the demand !or replacement parts Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: gross re2uirements$ ,RP e/plosion %earning &utcome: Apply the process o! materials re2uirements planning ',RP) <;) A computer5generated memo used by inventory planners to ma@e decisions about releasing new orders and adAusting due dates o! scheduled receipts is a'n): A) enterprise report. =) in!inite capacity. )) action notice. ") input?output report. Answer: ) Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: planned order release$ scheduled receipt$ action notice <<) A techni2ue used !or proAecting time5phased capacity re2uirements !or wor@stations is called: A) capacity re2uirements planning. =) time5adAusted output control. )) input?output control. ") wor@ center planning. Answer: A Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: capacity re2uirements planning

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177) Chich o! the !ollowing uses o! ,RP in promoting a healthy environment is F&T usedD A) An ,RP system can trac@ waste in a bill o! materials as a component o! an item. =) Chen the master production schedule is developed !or a product$ reports can be generated that proAect the 2uantity o! waste. )) Chen the master production schedule is developed !or a product$ reports can be generated that proAect the timing o! waste. ") The ,RP system can be used to communicate directly with the 8nternational &rganization !or +tandardization to !ile 8+& <777 documentation. Answer: " Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: ,RP$ environment %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 171) Chich o! the !ollowing statements about service resource planning is TR ED A) The service analogy to the =&, in a manu!acturing company is a bill o! lading '=&%). =) &ne resource that every service provider manages is cash. )) There is no such thing as dependent demand in the service sector. ") As services are completed$ the accounts receivable decrease. Answer: = Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: service$ resource planning 17() An e/ample o! a dependent demand item !or services is a'n): A) menu in a restaurant. =) Au@ebo/ in a club. )) operating suite at a hospital. ") a pilot.s chec@list !or an airline. Answer: ) Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: dependent demand$ service 17-) *acilitating goods in a hotel.s bill o! resources would include a: A) house@eeper. =) !a/ machine. )) towel. ") !ront5des@ cler@. Answer: ) Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: !acilitating goods$ =&R$ bill o! resources

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171) The service analogy to the bill o! materials in a manu!acturing company is the bill o!: A) resources. =) services. )) sub5services. ") tender. Answer: A Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: =&R$ bill o! resources 173) A companywide process that cuts across !unctional areas$ business units$ geographic regions$ and product lines is a'n) NNNNNNNN. Answer: enterprise process Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: enterprise process$ ERP %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) 174) ERP revolves around a'n) NNNNNNNN. Answer: single database Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: enterprise resource planning$ ERP$ database %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) 17:) 8n ,RP$ a'n) NNNNNNNN is any item manu!actured !rom one or more components. Answer: parent Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: parent$ component 17;) 8n ,RP$ a'n) NNNNNNNN is an item that may go through one or more operations to be trans!ormed into or become part o! one or more parents. Answer: component Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: component$ parent 17<) NNNNNNNN is a computerized in!ormation system developed speci!ically to aid in managing dependent5demand inventory and scheduling replenishment orders. Answer: ,RP$ material re2uirements planning Re!erence: ,aterial Re2uirements Planning "i!!iculty: Easy #eywords: ,RP$ material re2uirements plan$ dependent demand

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117) ,RP NNNNNNNN is a process that converts the re2uirements o! various !inal products into a material re2uirements plan that speci!ies the replenishment schedule o! all the subassemblies$ components$ and raw materials needed by the !inal products. Answer: e/plosion Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: e/plosion$ ,RP$ material re2uirements plan %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 111) The NNNNNNNN is a record o! all components o! an item$ the parent5component relationships$ and usage 2uantities derived !rom engineering and process design. Answer: bill o! materials$ =&, Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ bill o! materials 11() A'n ) NNNNNNNN item has one or more parents but no components. Answer: purchased Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: purchased item$ parent$ component 11-) The %1% rule is a special case o! the NNNNNNNN . Answer: P&B rule Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: P&B 111) Among the !our core processes o! an organization that lin@ activities within and across !irms in a supply chain$ the NNNNNNNN interacts with all o! them either through its inputs or outputs. Answer: ,RP system Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP system$ material re2uirements planning 113) A'n) NNNNNNNN is an intermediate item that is assembled !rom one or more components. Answer: subassembly Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: subassembly$ intermediate item$ component 114) NNNNNNNN is the degree to which a component has more than one immediate parent. Answer: Part commonality Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: part commonality$ component$ parent

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11:) The sums o! the 2uantities in the master production schedule must e2ual those in the NNNNNNNN. Answer: sales and operations plan Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: master production schedule$ ,P+$ material re2uirements planning$ ,RP 11;) A'n) NNNNNNNN is a record that divides the !uture into time periods called time buc@ets. Answer: inventory record Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: inventory record$ time buc@et 11<) &ne thing that an ,RP 88 system has that an ,RP system does not is NNNNNNNN. Answer: a lin@age to the !inancial system Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP 88 1(7) NNNNNNNN are the total demand derived !rom all parent production plans. Answer: >ross re2uirements Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: gross re2uirements$ parent 1(1) NNNNNNNN are orders that have been placed but not yet completed. Answer: +cheduled receipts Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: scheduled receipts$ order 1(() &perations produces a number o! items in one production period. Those items that are not produced !or a speci!ic customer order are NNNNNNNN. Answer: available to promise Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: available to promise$ ATP 1(-) NNNNNNNN is an estimate o! the amount o! inventory available each wee@ a!ter gross re2uirements have been satis!ied. Answer: ProAected on5hand inventory Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: proAected on5hand inventory

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1(1) Caiting time and process time are two components o! NNNNNNNN. Answer: lead time Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: waiting time$ processing time$ lead time 1(3) NNNNNNNN is a lot5sizing rule under which the lot size ordered covers the gross re2uirements o! a single wee@. Answer: %ot5!or5lot$ %1% Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: %1%$ lot5!or5lot sizing rule 1(4) A'n) NNNNNNNN is inventory carried into a wee@ but too small to prevent a shortage. Answer: remnant Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: remnant$ inventory 1(:) The lot5!or5lot '%1%) rule minimizes inventory investment but it also ma/imizes the number o! NNNNNNNN. Answer: orders$ orders placed Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: lot5!or5lot rule$ %1% 1(;) NNNNNNNN is a techni2ue used !or proAecting time5phased capacity re2uirements !or wor@stations. Answer: )apacity re2uirements planning$ )RP Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: )RP$ capacity re2uirements planning 1(<) NNNNNNNN ties the basic ,RP system to the company.s !inancial system. Answer: ,anu!acturing resource planning$ ,RP 88 Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements plan$ ,RP 88$ manu!acturing resource planning 1-7) A'n) NNNNNNNN is a record o! a service !irm.s parent5component relationships all o! the materials$ e2uipment$ time$ sta!!$ and other productive assets associated with them$ including usage 2uantities. Answer: bill o! resources Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: resource planning$ service$ bill o! resources

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1-1) Chat are the di!!erences and similarities among material re2uirements planning$ manu!acturing resource planning$ and enterprise resource planning systemsD Answer: The materials re2uirement planning ',RP) system can be considered a subset o! the manu!acturing resource planning ',RP 88) system$ containing all o! the production5related capabilities without the tie5in to the company.s !inancial and other core and supporting process systems. The ,RP 88 system could be considered a subset o! an enterprise resource planning 'ERP) system$ containing everything an ERP system has without the single source o! data$ streamlined data !lows$ and availability o! a wealth o! real5time in!ormation !or all employees. Re!erence: ,ultiple +ections "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) 1-() Chat is the basic idea behind an enterprise resource planning systemD Answer: An enterprise resource planning system is a large$ integrated in!ormation system that supports many$ i! not all$ o! a !irm.s processes and data storage needs. The organization can view its operations as a whole rather than guessing how activity in one area a!!ects another. The common database eliminates multiple data entry and the mista@es that are inherent in multiple entry systems. Re!erence: Enterprise Resource Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning %earning &utcome: "escribe the process and applications o! enterprise resource planning 'ERP) 1--) Chat are the @ey inputs to an ,RP systemD Answer: The @ey inputs are the bill o! materials$ master production schedule$ and inventory records. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements plan$ input 1-1) Chat is the e/plosion o! the ,P+ and what are the outputsD Answer: ,RP translates$ or explodes$ the ,P+ and other sources o! demand into the re2uirements needed !or all o! the subassemblies$ components$ and raw materials the !irm needs to produce parent items. This process generates the material re2uirements plan !or each component item. An item.s gross re2uirements are derived !rom three sources: 1. The ,P+ !or immediate parents that are end itemsJ (. The planned order releases 'not the gross re2uirements$ scheduled receipts$ or planned receipts) !or immediate parents below the ,P+ levelJ -. Any other re2uirements not originating in the ,P+$ such as the demand !or replacement parts. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements plan$ input$ ,P+$ e/plode

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1-3) E/plain the di!!erence between independent and dependent demand and illustrate your e/planation with an e/ample. Answer: E/amples will vary. The @ey di!!erence between the two is whether the demand !or items A is driven directly by the demand !or item =. End items are typically independent demand since their demand is subAect only to customers. appetite !or them. The components used to ma@e up the end item have their demand determined by the number o! end items that are re2uired during any production period. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements plan$ input 1-4) Chat in!ormation can be gleaned !rom a bill o! materialsD 8! you were as@ed to produce an item based solely on a copy o! its =&,$ what missing in!ormation would you needD Answer: A bill o! materials is a record o! all the components o! an item$ the parent component relationships$ and the usage 2uantities derived !rom engineering and process designs. Hou would have a parts list$ but would have no idea how long it might ta@e to assemble an item$ or receive the components !rom a supplier 'lead times). Hou would also need to @now what the levels o! inventory were !or each item listed in the =&,. +ince the 2uestion is phrased as 0produce an item0 you might assume that only one end item was re2uired$ but i! the interpretation is otherwise$ you would need to @now a production 2uantity. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements plan$ input 1-:) E/plain the @ey di!!erences between the *&B$ P&B$ and %1% lot5sizing rules. Answer: A !i/ed5order52uantity '*&B) rule maintains the same order 2uantity each time an order is issued but varies the time interval between orders. A periodic5order52uantity 'P&B) rule allows a di!!erent order 2uantity to be speci!ied but each order covers the re2uirements !or a !i/ed number o! time periods. A lot5!or5lot '%1%) rule covers the gross re2uirements o! a single wee@.s production. P&B and %1% rules strive to avoid remnants and thus have smaller average inventory than *&B. =ecause their average inventory is lower$ they are less able to respond to last5 minute changes in customer re2uests. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: *&B$ P&B$ %1% lot5sizing rules %earning &utcome: Apply the process o! materials re2uirements planning ',RP) 1-;) E/plain why$ in a dependent demand environment$ ,RP does a better Aob o! estimating the need to replenish inventory items than does the reorder point system. Answer: ,RP wor@s better !or dependent5demand environments because statistical !orecasting !or components with lumpy demand results in large !orecast errors. 8t also provides managers with in!ormation use!ul !or planning capacities and estimating !inancial re2uirements$ and it automatically updates the demand and inventory5 replenishment schedules o! components when the production schedule o! parent items changes. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ lumpy demand

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1-<) 9ow can an ,RP system be used in a !irm.s sustainability e!!ortsD Answer: )ompanies can modi!y their ,RP systems to help them trac@ their wastes and plan !or their disposal. The type and amount o! waste associated with each item can be entered into its =&, by treating the waste much li@e you would a component o! the item. Chen the ,P+ is developed !or a product$ reports can be generated that proAect the amount o! waste e/pected during the production process and when it will occur. Although this approach can re2uire that a !irm.s =&, be modi!ied substantially$ the bene!its are also substantial. *irms can identi!y their waste problems in advance to eliminate them in some cases 'through process improvement e!!orts) or plan !or their proper disposal in others. 8t also gives the !irm a way to generate any !ormal documentation re2uired by the government to veri!y that it has complied with environmental laws and policies. Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ lumpy demand 117) )an ,RP be adapted !or use in services and$ i! so$ how would it wor@D Answer: +ervice providers must also plan the use o! resources and !acilitating goods. A bill o! resources '=&R) is a record o! all the re2uired materials$ e2uipment$ time$ sta!!$ and other resources needed to provide a service$ the parent?component relationships$ and the usage 2uantities. Faturally$ the services themselves cannot be inventoried but must instead be supplied on demand. Re!erence: Resource Planning !or +ervice Providers "i!!iculty: ,oderate #eywords: =&R$ bill o! resources$ !acilitating goods %earning &utcome: Apply the process o! materials re2uirements planning ',RP)

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111) )omplete the !ollowing ,P+ Record

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+$ master production schedule AA)+=: Analytic s@ills

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11() )omplete the !ollowing ,P+ Record.

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,P+$ master production schedule AA)+=: Analytic s@ills

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11-) )omplete the !ollowing ,RP record using the P&B rule.

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP record. P&B$ periodic order 2uantity %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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111) )omplete the !ollowing ,RP record using the %1% rule:

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP record$ %1%$ lot5!or5lot rule %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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113) )omplete the !ollowing ,RP record using the *&B rule:

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP record$ *&B$ !i/ed order 2uantity %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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114) )omplete the !ollowing ,RP record using the *&B rule:

Answer:

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: ,RP$ material re2uirements planning$ *&B$ !i/ed order 2uantity %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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11:) se the bill o! materials and inventory records to determine the 2uantity o! purchased items necessary to assemble (7 end items i! the manu!acturer uses lot5!or5lot ordering. There are no end items currently on hand$ and none o! the components have any scheduled receipts. Co'ponent A = ) ,n-han# 3 :3 17 Co'ponent " E * ,n-han# 13 (7

Answer: (7 End 8tems O 17 As less 3 on hand O -3 As -3 As O :7 =s -3 As O :7 "s less 13 "s on hand O 33 "s (7 End 8tems O 17 )s less 17 on hand O -7 )s -7 )s O -7 Es less - on hand O (: Es -7 )s O 47 *s less (7 on hand O 17 *s -7 )s O <7 =s <7 =s P :7 =s O147 =s less :3 on hand O ;3 =s Purchase# &te' = " E * (t$ to ,r#er ;3 33 (: 17

Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ inventory record$ bill o! materials %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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11;) se the bill o! materials and inventory records to determine the additional 2uantities o! purchased items necessary to assemble 13 end items i! the manu!acturer uses lot5!or5lot ordering. There are no end items currently on hand$ and none o! the components have any scheduled receipts.

&te' & P )

+'ount : 1( -

&te' * F

+'ount 11 : 1(

&te' " E

+'ount ( ;

8nventory amounts indicated in the table are available to produce the end item indicated in this bill o! materials. Answer: (uantit$ to Purchase# &te' ,r#er " 137 E 141 * (:1 F 41 P 3: Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ inventory record$ bill o! materials %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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11<) se the bill o! materials and inventory records to determine the additional 2uantities o! purchased items necessary to assemble (7 end items i! the manu!acturer uses lot5!or5lot ordering. There are no end items currently on hand$ and none o! the components have any scheduled receipts.

&te' & P )

+'ount 3 11 :

&te' * F

+'ount 1: 17

&te' " E

+'ount 1( 4

8nventory amounts indicated in the table are available to produce the end item indicated in this bill o! materials. Answer: (uantit$ to Purchase# &te' ,r#er " (14 E 41; * 11( F 171 P <1 Re!erence: ,aterial Re2uirements Planning "i!!iculty: ,oderate #eywords: =&,$ inventory record$ bill o! materials %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

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137) )onsider the ,P+$ =&,$ and inventory data shown. .aster Pro#uction "che#ule/ The !ollowing table shows the ,P+ start 2uantities !or the ne/t 17 wee@s. *inished 8tem A *inished 8tem A ,P+ +tart 1 (7 ( 17 1 -7 3 4 (7 : ; 17 < 17

0ill o1 .aterial/ 5 8tem A uses ( each o! component "$ 1 each o! component ) and ( each o! subassembly =. 5 +ubassembly = uses ( each o! component E. "electe# &n2entor$ 3ata/ 8tem = ) " E %ot +izing Rule %1% P&B G *&B G (37 %1% %ead Time 1 ( 1 ( +cheduled Receipts 17 in period 1 &n59and 17 177 147 in period (

)onstruct the ,RP schedule using the preceding in!ormation. =lan@ ,RP records are provided at the end o! this test.

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Answer:

Re!erence: &utput !rom ,aterial Re2uirements Planning

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"i!!iculty: 9ard #eywords: ,RP$ material re2uirements planning$ lot5!or5lot$ %1%$ !i/ed order 2uantity$ *&B$ periodic order 2uantity$ P&B %earning &utcome: Apply the process o! materials re2uirements planning ',RP) AA)+=: Analytic s@ills

Blank MRP Record

Item Description Date Gross re !irements 1 2 3 4 5 6

Lot Size Lead Time: 7 8 9 10

Sc"ed!#ed receipts

$ro%ecte d on &and

$#anned receipts

$#anned order re#eases

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