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CHAPTER 14: MATERIAL REQUIREMENTS PLANNING (MRP) AND ERP TRUE/FALSE 1. Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy. True (Global company profile, easy) 2. MRP is generally practiced on items with dependent demand. True (Dependent demand, easy) 3. Reduced inventory levels and faster response to market changes are both benefits of MRP. True (Introduction, easy) 4. A dependent demand item is so called because its demand is dependent on customer preferences. False (Dependent demand, moderate) 5. The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used. True (Dependent demand, moderate) 6. Since MRP is quite detailed in nature, it has no influence on the longer-range, less detailed aggregate planning. False (Dependent inventory model requirements, moderate) 7. The master production schedule is a forecast of demand for families of products. False (Dependent inventory model requirements, easy) 8. Lead times, inventory availability, and purchase orders outstanding are among the five things operations managers must know for effective use of MRP. True (Dependent inventory model requirements, easy) 9. A bill of material lists all components, ingredients, and materials needed to produce one unit of an end item. True (Dependent inventory model requirements, moderate) 10. "Phantom bills" are bills of material for subassemblies that do not exist in reality. False (Dependent inventory model requirements, easy) 11. Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts. True (Dependent inventory model requirements, moderate) 12. The Aggregate Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times. False (Dependent inventory model requirements, moderate)
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13. The time phased product structure, unlike the bill of material, adds the concept of lead times. True (Dependent inventory model requirements, moderate) 14. If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G. True (Dependent inventory model requirements, moderate) 15. If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90. True (MRP structure, easy) 16. Gross material requirements do not take into account the amount of inventory on hand. True (MRP structure, easy) 17. In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ. False (MRP management, moderate) 18. Time fences divide that segment of the MPS that can be revised from that section that is "frozen." True (MRP management, easy) 19. MRP is an excellent tool for scheduling products with variable lead times. False (MRP management, easy)
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