Multiple Choice

This activity contains 17 questions.

The list of quantities of components, ingredients, and materials required to produce a
product is the

engineering change notice.
bill-of-materials.
master schedule.
purchase order.
____________ allows a segment of the master schedule to be designated as "not to
be rescheduled."

Regenerative MRP
Time fence
System nervousness
Pegging
A lot-sizing technique that generates exactly what was required to meet the plan is

economic order quantity.
lot-for-lot.
the Wagner-Whitin algorithm.
part period balancing.
Breaking up the order and running part of it ahead of schedule is known as

operations splitting.
lot splitting.
overlapping.
pegging.
The difference between a gross material requirements plan (gross MRP) and a net
material requirements plan (net MRP) is

the net MRP includes consideration of the inventory on hand, whereas the gross
MRP does not.

the gross MRP includes consideration of the inventory on hand, whereas the net
MRP does not.

the gross MRP doesn't take taxes into account, whereas the net MRP includes the
tax considerations.

the gross MRP may not be computerized, but the net MRP must be computerized.
A phantom bill-of-materials is a bill-of-materials developed for

a module that is a major component of a final product.
a final product for which production is to be discontinued.
the purpose of grouping subassemblies when we wish to issue "kits" for later use.
a subassembly that exists only temporarily.
Which of the following lot-sizing techniques is likely to prove the most complex to
use?

part period balancing (PPB)
the Wagner-Whitin algorithm
economic order quantity (EOQ)
lot-for-lot
When a bill-of-materials is used in order to assign an artificial parent to a bill-of-
materials, it is usually called a

pick list.
planning bill-of-materials.
phantom bill-of-materials.
modular bill-of-materials.
The operations manager has several tools available to deal with MRP system
nervousness. Those tools are

time fences and pegging.
buckets with back flush.
pseudo bills and kits.
net and gross requirements.
An MRP system that provides feedback to the capacity plan, master production
schedule, and production plans is called

load report.
system nervousness.
lot-sizing.
closed-loop MRP.
A time-phased stock-replenishment plan for all levels of a supply chain is called

ERP.
MRP II.
MRP.
DRP.
Which of the following is an advantage of ERP?

requires major changes to the company and its processes
is simple enough that companies have an easy time adjusting to it
creates commonality of databases
is very inexpensive to purchase
Use the product structure tree and the inventory records to determine how many
item Cs should be ordered in order to produce 20 phones.
Item
On-
Hand
A 5
B 5
C 5
D 25
E 4
F 20

105
120
115
97
Use the product structure tree and the lead time information (in weeks) to determine
when an order for Fs should be placed to deliver phones in week 10 if the phones
require 2 weeks to assemble. Assume there is no starting inventory for any
component or end item.
Item
Lead
Time
A 2
B 1
C 3
D 2
E 3
F 2

week 3
week 2
week 5
week 4
A(n) ________ system provides feedback to the capacity plan, master production
schedule and production plan.
load
closed-loop
Wagner-Whitin
efficient consumer response
Which of these pieces of information isNOTcontained in a bill of material?

raw materials to be used
quantities of components
physical dimensions
lead times
A report that shows the resource requirements in a work center for all currently
assigned work as well as all planned and expected orders is a

MRP II report.
back flush report.
closed-loop report.
load report.