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MRP II is simply an improved version of MRP that processes more quickly and can plan for a larger number of end items.

A) True
B) False

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An MRP system whose records are updated continuously is referred to as a(n) :


A) regenerative system.
B) batch-type system.
C) Plossl-Wright system.
D) net-change system.
E) gross-change system.

F) A) and B)
G) D) and E)

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ERP implementation probably will not require:


A) cross-functional teams.
B) just a few weeks to install.
C) intensive training.
D) high funding for both initial cost and maintenance.
E) upgrades after installation.

F) A) and E)
G) C) and E)

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Which of these products would be most likely to have dependent demand?


A) refrigerators
B) automobile engines
C) televisions
D) brownies
E) Automobiles

F) B) and C)
G) B) and D)

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The inventory records contain information on the status of each item by time period.

A) True
B) False

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The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

A) True
B) False

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The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of materials.

A) True
B) False

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A computer-based information system designed to handle ordering and scheduling of dependent-demand items is used for:


A) computer-aided manufacturing.
B) computer-integrated manufacturing.
C) economic order quantity.
D) material requirements planning.
E) economic run size.

F) C) and D)
G) B) and E)

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D

The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

A) True
B) False

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Project management approaches can help in a conversion to an ERP system.

A) True
B) False

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The identification of parent items that have generated a given set of material requirements for an item is called:


A) paternity.
B) pegging.
C) requirement I.D.
D) relationship tracking.
E) master scheduling.

F) A) and E)
G) B) and D)

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Backflushing takes place:


A) when inventory records need updating.
B) after some bills of material have been found to be inaccurate.
C) after production has been completeD.
D) when customer orders are being reconciled.
E) when previous periods' planned releases are converted to scheduled receipts.

F) C) and D)
G) C) and E)

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A regenerative MRP system is one that is updated continuously, every time there is a schedule change.

A) True
B) False

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Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.

A) True
B) False

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MRP II did not replace the basic MRP.

A) True
B) False

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An effort to expand the scope of material planning by involving other functional areas in the planning process has been:


A) material requirements planning.
B) capacity requirements planning.
C) manufacturing resources planning.
D) just-in-time planning.
E) multifunctional relationships planning.

F) B) and E)
G) A) and E)

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Lot-for-lot ordering in MRP minimizes holding costs for parts that are carried over to other periods.

A) True
B) False

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True

The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

A) True
B) False

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Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?


A) gross requirements
B) net requirements
C) economic order quantity
D) gross requirements minus scheduled receipts
E) net requirements minus projected on-hand inventory

F) A) and E)
G) B) and E)

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MRP is used within MRP II systems.

A) True
B) False

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True

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