study guide 2 - mrp (1)

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ISE 4333Study Guide 2

MATERIAL REQUIREMENT PLANNING

1. Material Requirements Planning (MRP) takes place in the front end systems of the manufacturingplanning and control system? (True/False) False.

2. In a Material Requirements Planning (MRP) system, what does time-phasing of gross requirementsmean? Requirements are stated on a period-by-period basis according to the anticipated futureusage.

3. Front scheduling logic starts each step of the process as late as possible? (True/False) False.

4. A lot-for-lot order policy generates orders for a fixed quantity, independent of actual requirements?(True/False) False.

5. Processing all Material Requirements Planning (MRP) records in a single computer run is called ___________? Regeneration

6. Which of the following is true about MRP Systems?A) based on independent demandB) lot sizing is EOQC) demand pattern is randomD) objective is to meet manufacturing needsE) order philosophy is replenishment

7. Which MRP system input element specifies how many and when the firm plans to build each enditem?

A) Inventory records fileB) Bills of materialC) Master production scheduleD) Capacity planningE) none of the above

8. The purposes of a basic MRP system include:A) To control inventory levelsB) To prioritize the need for an itemC) Plan capacity to load the production systemD) A and BE) B and CF) A, B, and C

9. Which of the following is not an advantage of MRP?A) Reduced sales priceB) Reduced inventoryC) Reduced idle timeD) MRP is flexible - easy to veer away from the schedule if need arisesE) Better response to market demand

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10. Which of the following most closely describes net material requirements?A) gross requirements - planned order receiptsB) gross requirements - on-hand + planned order receiptsC) gross requirements - on-hand - planned order receiptsD) gross requirements - planned order releasesE) none of the above

11. The gross requirements of a given component part in an MRP system are determined from:A) net requirements + on-handB) net requirements of end itemC) gross requirements of the immediate partD) planned order releases of the end itemE) planned order releases of the immediate parents

12. Lot-sizing techniques include:A) Lot-for-lotB) Economic order quantity

C) Wagner-Whitin AlgorithmD) Part Period BalancingE) A, B, C, and D

13. MRP is used for:A) independent demand items.B) dependent demand items.C) available-to-promise items.D) disaggregated items.E) pegged items.

14. If lot-for-lot ordering is used, then planned order releases will be equal to:A) gross requirements.

B) projected on hand less safety stock.C) projected on hand plus safety stock.D) net requirements.E) gross requirements less safety stock.

15. Which of the following is not a direct input into MRP?A) the master production scheduleB) bills of materialsC) the production planD) the capacity planE) inventory records

16. Which of these describes lot sizing? Determining:A) planned order releasesB) net requirementsC) when to orderD) how much to orderE) gross requirements

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17. In MRP, planned order receipts must always equal:A) scheduled receipts.B) planned order releases.C) net requirementsD) gross requirements.E) projected on hand.

18. Which is true about scheduled receipts?A) They are orders previously placed, and not yet completed or received.B) They must be less than the net requirements in any period.C) They are included in planned order receipts.D) They are included in planned order releases.E) They are added to gross requirements to get net requirements.

19. In MRP, the listing of all the subassemblies and components needed to produce a unit of an enditem is called the:

A) material requirements plan.

B) master schedule.C) bill of materials.D) master production schedule.E) pegging.

20. In MRP, which one of these would not generally be a factor in determining the net requirements of acomponent?

A) planned order releasesB) scheduled receiptsC) projected on handD) gross requirements

E) none of the above

21. A key goal of MRP is to:A) minimize variable cost.B) use scheduled receipts only when necessary.C) match what is on hand with what is needed to be on hand.D) order early to avoid late-order penalties.E) order late to avoid inventory carrying cost.

22. Two units of subcomponent Z go into each unit of component Q, and Z doesn't go into anythingother than Q. Z's lead time is one week. Q's lead time is two weeks. Q has a planned order release of400 units in week 5. As regards Z, therefore, ____________ in week __________ are 800.

A) net requirements; 5B) gross requirements; 5C) net requirements; 4D) gross requirements; 4E) none of the above

23. Product Alpha consists of two units of component X and four units of component Y. Component Xconsists of four units of component Y and two units of component Z. Component Y's lead time is two

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weeks, there are no units of component Y on hand, and there are no scheduled receipts forcomponent Y. There are 400 units of component X on hand. Neither X nor Y go into any other itemor subcomponent. If 100 units of Alpha are to be produced beginning in week 4, then an order of __________ units of component Y will need to be released in week __________.

A) 400; 3B) 1200; 1C) 800; 3D) 400; 2E) 800; 2

24. Given the following product structures of end items X and Y, how many Cs are needed to make 50Xsand 100Ys? The number in parenthesis shows the number of parts required to make one parent.

A) 150B) 200C) 300D) 400E) 500

The product structure of end item X is as follows:

25. Determine the quantities of B, C, D, E, and F needed to assemble one X.A) B=2, C=1, D=3, E=7, F=2B) B=2, C=1, D=6, E=15, F=2C) B=2, C=1, D=6, E=16, F=2D) B=2, C=1, D=6, E=27, F=2E) B=2, C=1, D=6, E=28, F=2

26. Determine the quantities of these components that will be required to assemble 10 Xs, taking intoaccount the quantities on hand of various components:

Component B C D EOn Hand Qty 4 10 8 60

X

A (2)

C (2) D (1)

B (1)

E (2)

Y

B (1)

E (2)

C (1)

X

B (2)

D (3)

E (4)

E (1)

C (1)

E (2) F (2)

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A) B=16, C=0, D=52, E=220, F=20B) B=16, C=0, D=48, E=176, F=20C) B=16, C=0, D=40, E=116, F=0D) B=16, C=0, D=40, E=196, F=0E) B=16, C=0, D=40, E=116, F=20

27. Lead time for the part is two weeks, and the order quantity is 30. What action should be taken?

Week 1 2 3 4

Gross Requirements 10 15 10 20Projected Available 30Net RequirementsPlanned Order ReceiptPlanned Order Release

A) One order for 5 should be released in week 3 and one for 20 in week 4.B) An order for 30 should be released in week 1.C) An order for 30 should be released in week 2.D) An order for 30 should be released in week 3.E) An order for 30 should be released in week 4.

28. Lead time for the part is two weeks, and the lot size is 100. The projected available at the end ofweek 3 is ___, and the order should be released in _______.

Week 1 2 3 4

Gross Requirements 20 65 40 25Schedule Receipts 100Projected Available 30 10 45 5 80Net Requirements 20Planned Order Receipt 100Planned Order Release 100

A) 5 units, week 1.B) 45 units, week 3.C) 80 units, week 1.D) 5 units, week 2.E) 80 units, week 2.

29. Product X is made of two units of Y and three of Z. Y is made of one unit of A and two units of B. Z ismade of two units of A and four units of C. Lead time for X is one week; Y, two weeks; Z, threeweeks; A, two weeks; B, one week; and C, three weeks.

a. Draw the bill of materials.b. If 100 units of X are needed in week 10, develop a planning schedule showing when each

item should be ordered and in what quantity.

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Gross RequirementScheduled ReceiptsProjected Available BalancePlanned Order Release

Lot-for-lot, LT = 2wks, SS = 0

b. Suppose Paul changes the Safety Stock for part Y to 10 units. Would the MRP systemproduce any exception messages?

c. What changes would result in the MRP records after regeneration?

32. The MRP record for Part 1234 as of Monday morning week 1 is as follows:

Part 1234 Week 1 2 3 4 5

Gross Requirement 30 20 20 0 45

Scheduled Receipts 50Projected Available Balance 10 30 10 40 40 45Planned Order Release 50 50Lot size = 50, LT = 2wks

The following changes occurred during week 1, and the transactions were processed: Actual disbursements from stock during week 1 were only 20 instead of the planned 30. The schedule receipt for 50 due in week 1 was received on Tuesday, but 10 units were

rejected, so only 40 were actually received into inventory. The inventory was counted on Thursday and 20 additional pieces were found. The requirement date for the 45 pieces in week 5 was changed to week 4. Marketing requested an additional five pieces for samples in week 2. The requirement for week 6 has been set at 25. The planner launched the planned order of 50 units.

a. Complete the MRP record for Part 1234 as it would appear on Monday morning week 2.b. What action(s) are required by the planner on Monday week 2 as a result of transactions

occurring during week 1?

33. Peters Power Tools (PPT) has just received an order for 50 PPT band saws, to be shipped at thebeginning of period 9. Information concerning the saw assembly is given below (the number in

parenthesis shows the number of parts required to make one parent):

PPT band saw

Item Lead Time (weeks) ComponentsSaw 2 A (2), B (1), C (3)

A 1 E (3), D (1)B 2 D (2), F (3)C 2 E (2), D (2)

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D 1E 1F 3

a. Draw the product structure diagram.b. Construct a Gantt chart for the new order using front schedule logic.c. Construct a Gantt chart for the new order using back schedule logic.

34. Consider the following MRP record for Cactus Cups:

Week 1 2 3 4 5 6

Gross Requirement 25 30 5 15 5 10Scheduled Receipts 40 15Projected Available Balance 35 10 20 15 0 10 0Planned Order Release

Lot-for-lot, LT = 5wks, SS = 0

Suppose 5 units of the scheduled receipt for 40 units due on Monday of week 2 are scrappedduring week 1, and no scrap ticket is issued. Furthermore, assume this lot is not counted beforeit is put away in the stockroom on Monday of week 2, but it is recorded as a receipt of 40 units.What impact will these actions have on factory operations?

35. The MPC system at the Duckworth Manufacturing Company is run weekly to update the masterproduction schedule (MPS) and MRP records. At the start of week 1, the MPS for end products Aand B is:

Master Production Schedule

Week 1 2 3 4 5 6

Product A 10 25 5 10Product B 5 20 20 20

One unit of component C is required to manufacture one unit of either end product A or B.Purchasing lead time for component C is two weeks. An order quantity of 40 units is used and no(zero) safety stock is maintained for this item. Inventory balance for component C is 5 units atthe start of week l, and there's an open order (scheduled receipt) for 40 units due to bedelivered at the beginning of week 1.

a. Complete the MRP record for component C as it would appear at the beginning of week 1.

During week 1, the following transactions occurred for component C: The open order for 40 units due to be received at the start of week 1 was received on

Monday of week 1 with a quantity of 30 (10 units of component C were scrapped on thisorder).

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An inventory cycle count during week 1 revealed that five units of component C weremissing. Thus, an inventory adjustment of -5 was processed.

Ten units of component C were actually disbursed (instead of the 15 units planned fordisbursement to produce end products A and B). (The MPS quantity of 5 in week 1 forproduct B was canceled due to a customer order cancellation.)

The MPS quantities for week 7 include 15 units for product A and 0 units for product B. Due to a change in customer order requirements, marketing has requested that the MPSquantity of 25 units for product A scheduled in week 3 be moved to week 2.

The planner launched the planned order of 40 units.

b. Given this information, complete the MRP record for component C as it would appear onMonday of week 2.

c. What action(s) are required by the planner on Monday of week 2 as a result of transactionsoccurring during week 1?

study guide 2 - mrp (1)

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