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ch18 - ch18 Student 1 MRP stands for Manufacturing...

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ch18 Student: ___________________________________________________________________________ 1. MRP stands for Manufacturing Requirements Planning. True False 2. MRP stands for Material Requirements Planning. True False 3. Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product. True False 4. MRP is based on dependent demand. True False 5. MRP is most valuable in industries where a number of products are made in batches using the same productive equipment. True False 6. The master production schedule states the number of items to be produced during specific time periods. True False 7. MRP is least valuable in industries where a number of products are made in batches using the same productive equipment. True False 8. 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 False 9. MRP provides the schedule specifying when each part and component of an end item should be ordered or produced. True False 10. The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more "lumpy." True False
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11. 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. True False 12. A master production schedule is an input to a material requirements planning (MRP) system. True False 13. An input to the material requirements planning (MRP) system is an exception report. True False 14. An input to the material requirements planning (MRP) system is an inventory records file. True False 15. An output of MRP is a bill of materials (BOM) file. True False 16. A BOM file is often called a product structure file or product tree because it shows how a product is put together. True False 17. Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels. True False 18. A modular bill of materials includes items with fractional options. True False 19. A modular bill of materials is the term for an item that can be produced and stocked as a subassembly. True False 20. The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level. True False 21. Net change MRP systems are "activity" driven. True False 22. In a net change MRP system requirements and schedules are updated whenever a transaction is processed that has an impact on the item. True False 23. In a net change MRP system requirements and schedules are considered rigid and never updated. True False
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24. Net change MRP reflects the exact status of each item managed by the system in "real time." True False 25. Low level coding in MRP indicates the exact status of each item managed by the system in "real time." True False 26. In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule.
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