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Unformatted text preview: Chapter 18 - Material Requirements Planning Chapter 18 Material Requirements Planning True / False Questions 1. MRP stands for Manufacturing Requirements Planning. FALSE Level: Easy 2. MRP II stands for Manufacturing Resource Planning. TRUE Level: Easy 3. All firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product. TRUE Level: Easy 4. MRP is based on dependent demand. TRUE Level: Easy 5. MRP is most valuable in industries where a number of products are made in batches using the same productive equipment. TRUE Level: Easy 18-1 Chapter 18 - Material Requirements Planning 6. The master production schedule (MPS) is a time-phased plan specifying how many of each end item to build and when the firm plans to build them. TRUE Level: Easy 7. A time fence is a unit of productivity related to time. FALSE Level: Easy 8. MRP is least valuable in industries where a number of products are made in batches using the same productive equipment. FALSE Level: Easy 9. Management defines time fences as periods of time having some specific Level of opportunity for the customer to make changes. TRUE Level: Easy 10. The master production schedule states the number of items to be produced during specific time periods. TRUE Level: Easy 18-2 Chapter 18 - Material Requirements Planning 11. MRP provides the schedule specifying when each part and component of an end item should be ordered or produced. TRUE Level: Easy 12. MRP is a logical, easily understandable approach to the problem of determining the number of parts, components and materials needed to produce each end item. TRUE Level: Easy 13. The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become "lumpy". TRUE Level: Medium 14. The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time. FALSE Level: Medium 15. Developing the master production schedule is done by disaggregating the aggregate production plan. TRUE Level: Easy 18-3 Chapter 18 - Material Requirements Planning 16. Time fences increase productivity by reducing the time spent waiting for each product to be produced. FALSE Level: Easy 17. A master production schedule is an essential input to a material requirements planning (MRP) system. TRUE Level: Easy 18. A necessary input to the material requirements planning (MRP) system is an exception report. FALSE Level: Easy 19. A necessary input to the material requirements planning (MRP) system is an inventory records file. TRUE Level: Easy 20. Use of time fences maintains a reasonably controlled flow through a production system. ...
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