Manufacturing Planning and Control for Supply Chain Management

Supporting information for material requirements planning (MRP) systems includes which of the following
I. Bills of material
II. Routing File
III. Inventory status data
I and III only
Material requirements planning (MRP) takes place in the front-end systems of the manufacturing planning and control system
False
Material requirements planning (MRP) systems perform which of these functions?
I. Translating the overall production plan into detailed steps
II Providing information for capacity planning
III. Providing information for staffing plans
I and II only
In a material requirements planning (MRP) system, gross requirements are
Anticipated future usage or demand for the item during each period
In a material requirements planning (MRP) system, the scheduled receipts are
Existing replenishment orders for the item due at the beginning of each period
In material requirements planning (MRP) system, the projected available balance is
Current and projected inventory status for the item at the end of the period
In a material requirements planning (MRP) system, gross requirements are time phased, which means which of the following
Requirements from all periods are stated on a period-by-period basis
The precedent relationship shows
The order in which production steps must be accomplished
Front scheduling logic starts each step of the process as late as possible
False
Back scheduling logic starts each step of the process as late as possible
True
A lot-for-lot order policy generates orders for a fixed quantity; independent of actual requirements
False
Processing all material requirements planning (MRP) records in a single computer run is called
Regeneration
Safety stock is an inventory buffer of stock over and above requirements
True
Safety lead time involves inflating lead times to ensure stock availability
False
In a system where timing of reduction is uncertain; it would be more appropriate to utilize
Safety lead time
Information concerning the specific source of demand is called
Pegging information
A firm planned order (FPO) can be changed by the material requirements planing (MRP) system without human involvement
False
A commitment to an eternal supplier (e.g. a purchase order) is represented in the material requirements planning (MRP) system by a
Scheduled receipt
Which of the following is not and action commonly taken by an MRP planner?
I. Release orders
II. Confirm inventory counts on incoming shipments
III. Reconcile MRP errors
II only
Order launching occurs when a planned order release is in the action bucket
True
In a well-functioning material requirements planning (MRP) system, what percent of parts would be expected to require planner review (via exception codes) in any given processing cycle?
10-20%
Exception codes are usually generated for which of the following reasons?
I.Open order timing/ amount not satisfactory
II. Need for management intervention
III. Generation of planned orders
I and II only
What is the primary consideration when selecting a lot-sizing procedure?
The nature of the net requirements data
Material requirements planning (MRP) lot-sizing procedures are specifically designed for situations where demand is continous
False
Material requirements planning (MRP) lot-sizing assumptions include which of the following?
I. All requirements for a given period are available at the beginning of that period
II. Ordering decision occur at regular time intervals
III.Demand for future periods can be backordered
I and II only
Which of the following are potential sources of uncertainty in a material requirements planning (MRP) system?
I. Customer name
II. Supply timing
III. Demand quantity
II and III only
In a situation where the main source of uncertainty is due to timing of customer orders, which buffering strategy would be expected to perform best?
Safety lead time
In a situation where the main source of uncertainty is due to quantity of demand, which buffering strategy would be expected to perform best
Safety stock
Material requirements planning (MRP) system nervousness can be attributed to which of the following?
I. Unplanned demand
II. MRP parameter errorss
III. Firm planned orders
I and II only
Which of the following strategies can be useful in reducing material requirements planning (MRP) system nervousness?
I. Introducing system stability through time fences
II. Careful use of lot-sizing procedures
III. Using firm planned orders
I, II, and III
When capacity does not match the plan, which of the following actions can be taken?
I. Provide sufficient capacity
II. Change the material plan
III. Modify capacity calculations
I and II only
Which of the following is an objective of capacity planning?
I. Building excess capacity for possible future use
II. Estimating capacity requirements early enough to take action if necessary
III. Execution of the plan to avoid surprises
I and III only
Which capacity planning activities are considered short-range planning?
Finite loading and input/output anallysis
Resource planning is most closely linked to which manufacturing planning and control (MPC) element?
Sales and operation planning (SOP)
Capacity requirements planning (CRP) is most closely linked to which manufacturing planning and control (MPC) element?
Detailed material planning
Which capacity planning technique is based on accounting and/ or historical data?
Capacity planning using overall factors (CPOF)
The capacity requirements using overall factors (CPOF) planning method is likely to function poorly in a just-in-time (JIT) environment
False
The capacity bill planning technique provides more direct linkages to end products than does the capacity requirements using overall factors (CPOF) planning method.
True
Under what conditions are both capacity requirements using overall factors (CPOF) and capacity bills likely to return the same capacity requirement results?
When planning for a single product that is produced in a single work center
Resource profile planning differs from capacity requirements using overall factors (CPOF) and capacity bills by considering which of the following?
Projected workload in individual work centers
In which of the following ways does capacity requirements planning (CRP) differ from rough-cut capacity planning techniques?
I. CRP uses a time-phased approach
II. CRP considers service part demand
III. CRP considers standard lot sizes
I and II only
Capacity requirements planning (CRP) ignores current finished goods and work-in-process inventory levels.
False
Which of theses planning techniques requires the most computing resources?
Capacity requirements planning (CRP)
Which of the following are benefits of simultaneous planning of capacity and materials?
I Fewer computer resources required
II. Better utilization of existing capacity
III. Eliminates the need to expand capacity
II only
Finite scheduling techniques always assign jobs to available capacity on a first-come, first- served basis.
False
The horizontal loading scheduling approach is more likely to result in higher capacity utilization.
True
The vertical loading scheduling approach is more likely to result in more complete jobs at the end of the planning cycle.
True
Advanced production scheduling (APS) system time estimates, it is desirable to overstate the time estimate to allow some slack in the system.
False
Input/output control compares
Planned inputs and outputs to actual values
According to the theory of constraints (TOC), bottleneck work centers should be managed identically to non- bottlenecks.
False
According to the theory of constraints (TOC), which of these conditions is most desirable?
I. 100% utilization of bottleneck work centers
II. 100% utilization of non-bottleneck work centers
III. Less than 100% utilization of bottleneck work centers
I only
Which of the following are useful measures of capacity?
I. Machine- hours
II. Labor- hours
III. Elapsed time
I and II only
Which of the following are capacities that may need to be managed?
I. Direct labor
II. Inspection
III. Engineering
I, II, and III
Rough-cut planning (CRP) can be used in firms that don’t utilize material requirements planning (MRP).
False
Input/output control is especially important at a firm that uses just-in-time (JIT) systems.
False