ERP Multiple Choice Questions and Answers
1. Demand for a given item is said to be dependent if
A. the item has several children
B. there is a deep bill of materials
C. the finished products are mostly services (rather than goods)
D. there is a clearly identifiable parent
Ans: D
2. Dependent demand and independent demand items differ in that
A. for any product, all components are dependent-demand items
B. the need for independent-demand items is forecasted
C. the need for dependent-demand items is calculated
D. all of the above are true
Ans: D
3. A master production schedule specifies
A. the financial resources required for production
B. what component is to be made, and when
C. what product is to be made, and when
D. the labor hours required for production
Ans: C
4. The ______ is(are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
A. master production schedule
B. gross requirements
C. inventory records
D. assembly time chart
Ans: A
5. A master production schedule contains information about
A. quantities and required delivery dates of all sub-assemblies
B. quantities and required delivery dates of final products
C. inventory on hand for each sub-assembly
D. inventory on hand for each final product
Ans: B
6. In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
Ans: A
7. In job shop (make-to-order) operations, the master production schedule is usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
Ans: D
8. The following table is an example of a(n)
Week 1 Week 2 Week 3 Week 4 Week 5
Clothes Washer 200 100
Clothes Dryer 300 100 100 100
Upright Freezer 200 500
A. aggregate plan
B. load report
C. master production schedule
D. inventory record
Ans: C
9. The ______ is the input to Materials Requirements Planning which lists the assemblies,
subassemblies, parts and raw materials needed to produce one unit of finished product.
A. bill of materials
B. net requirements chart
C. inventory records
D. assembly time chart
Ans: A
10. A bill of materials lists the
A. times needed to perform all phases of production
B. production schedules for all products
C. components, ingredients, and materials required to produce an item
D. operations required to produce an item
Ans: C
11. One way to facilitate production scheduling and production in firms making a large number of different final products is to use
A. planning bills
B. modular bills
C. phantom bills
D. overdue bills
Ans: B
12. The bill of materials contains information necessary to
A. convert (explode) net requirements at one level into gross requirements at the next level
B. calculate quantities on hand and on order
C. convert gross requirements into net requirements
D. place an order to replenish the item
Ans: A
13. Which of the following statements best compares modular bills and phantom bills?
A. Both pertain to assemblies that are not inventorieD.
B. There is no difference between the two.
C. Both pertain to assemblies that are inventorieD.
D. Modular bills represent subassemblies that actually exist and are inventoried, while phantom
bills represent subassemblies that exist only temporarily and are not inventorieD.
Ans: D
14. Given the following bill-of-materials:
If the demand for product A is 50 units, what will be the gross requirement for component E?
A. 300
B. 100
C. 200
D. 250
Ans: A
15. The minimum record accuracy required for successful MRP is approximately
A. lower than 90%
B. 90%
C. 95%
D. 99%
Ans: D
16. Given the following bill of materials
If the demand for product A is 50 units, what will be the gross requirement for component E?
A. 50
B. 100
C. 150
D. 200
Ans: A
17. Given the following bill of materials
If the demand for product A is 30 units, and there are on hand 10 units of B and none of C, how many units of part D will be needed?
A. 3
B. 40
C. 70
D. 90
Ans: C
18. "Exploding" the bill of materials means
A. converting the bill of materials into components and raw material requirements
B. identifying the lead time of all the components
C. determining the various components' quantities that are already on hand
D. determining the net requirements for all the components
Ans: A
19. Low level coding means that
A. a final item has only a few levels in the BOM structure
B. it is the code for the missing items
C. a component item is coded at the lowest level at which it appears in the BOM structure
D. the top level of the BOM is below level zero and that BOM's are not organized around the finished product
Ans: C
20. Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is
1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z
is 6 weeks. The cumulative lead time for X is _____ weeks.
A. 48
B. 7
C. 8
D. 10
Ans: C
21. Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is ______ weeks.
A. 6
B. 9
C. 12
D. 18
Ans: B
22. The MPS calls for 110 units of Product M. There are currently 30 of Product M on hanD. Each M requires 4 of Component N. There are 20 units of N on hanD. The gross requirements for N are
A. 150
B. 170
C. 300
D. 320
Ans: C
23. The MPS calls for 50 units of Product A and 60 ofB. There are currently 25 of Product B on hanD. Each A requires 2 of Part C; each B requires 5 ofC. There are 160 units of C available. The net requirements for C are
A. 115
B. 175
C. 240
D. 690
Ans: A
24. The MPS calls for 110 units of Product A, there are currently 60 of Product A on hanD. Each A requires 4 of Part B, there are 20 units of B available. The net requirements for B are
A. 20
B. 120
C. 180
D. 240
Ans: C
25. In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket
A. signals the need to purchase that end item in that period
B. implies that value was scheduled by the MPS
C. signals the need for a negative Planned Order Receipt in that period
D. is impossible
Ans: D
26. A material requirements plan contains information with regard to all of the following except
A. quantities and required delivery dates of all sub-assemblies
B. quantities and required delivery dates of final products
C. the capacity needed to provide the projected output rate
D. inventory on hand for each final product
Ans: C
27. The number of units projected to be available at the end of each time period refers to
A. net requirements
B. scheduled receipts
C. the projected usage of the item
D. the amount projected to be on hand
Ans: D
28. Linking a part requirement with the parent component that caused the requirement is referred to as
A. net requirements planning
B. a time fence
C. pegging
D. Kanban
Ans: C
29. In MRP, system nervousness is caused by
A. management's attempt to continually respond to minor changes in production requirements
B. the use of the lot-for-lot approach
C. management's marking part of the master production schedule as "not to be rescheduled"
D. the use of phantom bills of materials
Ans: A
30. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)
A. modular bills
B. time phasing
C. time fences
D. lot sizing
Ans: C
31. A major strength of MRP is its capability
A. to minimize labor hours used in production
B. for timely and accurate replanning
C. to reduce lead times
D. to maximize production throughput
Ans: B
32. Material requirements plan specify
A. the quantities of the product families that need to be produced
B. the quantity and timing of planned order releases
C. the capacity needed to provide the projected output rate
D. the costs associated with alternative plans 6
Ans: B
33. Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
A. The quantity of gross requirements for a child item is always equal to the quantity of planned
order releases for its parent.
B. The quantity of gross requirements for a child item is equal to the quantity of net requirements
for its parent(s) multiplied by the number of child items used in the parent assembly.
C. The quantity of gross requirements for a child item is always equal to the quantity of gross
requirements for its parent.
D. The quantity and gross requirements for a child item is always equal to the quantity of net
requirements for its parent.
Ans: B
34. Which of the following lot-sizing-techniques results in the lowest holding costs?
A. lot-for-lot
B. EOQ
C. part-period-balancing
D. Wagner-Whitin algorithm
Ans: A
35. What lot sizing technique is generally preferred when inventory holding costs are extremely high?
A. lot-for-lot
B. EOQ
C. part-period balancing
D. the Wagner-Whitin algorithm
Ans: A
36. For the lot-for-lot lot-sizing technique to be appropriate
A. future demand should be known for several weeks
B. setup cost should be relatively small
C. annual volume should be rather low
D. item unit cost should be relatively small
Ans: B
37. MRP II is accurately described as
A. MRP software designed for services
B. MRP with a new set of computer programs that execute on micro-computers
C. MRP augmented by other resource variables
D. usually employed to isolate manufacturing operations from other aspects of an organization
Ans: C
38. Enterprise Resource Planning (ERP) is
A. severely limited by current MRP computer systems
B. not related to MRP
C. an advanced MRP II system that ties-in customers and suppliers
D. not currently practical
Ans:
39. The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is
A. MRP II
B. Enterprise Resource Planning
C. the master production schedule
D. closed-loop MRP 7
Ans: B
40. Distribution Resource Planning (DRP) is
A. a transportation plan to ship materials to warehouses
B. a time-phased stock replenishment plan for all levels of a distribution network
C. a shipping plan from a central warehouse to retail warehouses
D. material requirements planning with feedback loop from distribution centers
Ans: B
1. Demand for a given item is said to be dependent if
A. the item has several children
B. there is a deep bill of materials
C. the finished products are mostly services (rather than goods)
D. there is a clearly identifiable parent
Ans: D
2. Dependent demand and independent demand items differ in that
A. for any product, all components are dependent-demand items
B. the need for independent-demand items is forecasted
C. the need for dependent-demand items is calculated
D. all of the above are true
Ans: D
3. A master production schedule specifies
A. the financial resources required for production
B. what component is to be made, and when
C. what product is to be made, and when
D. the labor hours required for production
Ans: C
4. The ______ is(are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
A. master production schedule
B. gross requirements
C. inventory records
D. assembly time chart
Ans: A
5. A master production schedule contains information about
A. quantities and required delivery dates of all sub-assemblies
B. quantities and required delivery dates of final products
C. inventory on hand for each sub-assembly
D. inventory on hand for each final product
Ans: B
6. In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
Ans: A
7. In job shop (make-to-order) operations, the master production schedule is usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
Ans: D
8. The following table is an example of a(n)
Week 1 Week 2 Week 3 Week 4 Week 5
Clothes Washer 200 100
Clothes Dryer 300 100 100 100
Upright Freezer 200 500
A. aggregate plan
B. load report
C. master production schedule
D. inventory record
Ans: C
9. The ______ is the input to Materials Requirements Planning which lists the assemblies,
subassemblies, parts and raw materials needed to produce one unit of finished product.
A. bill of materials
B. net requirements chart
C. inventory records
D. assembly time chart
Ans: A
10. A bill of materials lists the
A. times needed to perform all phases of production
B. production schedules for all products
C. components, ingredients, and materials required to produce an item
D. operations required to produce an item
Ans: C
11. One way to facilitate production scheduling and production in firms making a large number of different final products is to use
A. planning bills
B. modular bills
C. phantom bills
D. overdue bills
Ans: B
12. The bill of materials contains information necessary to
A. convert (explode) net requirements at one level into gross requirements at the next level
B. calculate quantities on hand and on order
C. convert gross requirements into net requirements
D. place an order to replenish the item
Ans: A
13. Which of the following statements best compares modular bills and phantom bills?
A. Both pertain to assemblies that are not inventorieD.
B. There is no difference between the two.
C. Both pertain to assemblies that are inventorieD.
D. Modular bills represent subassemblies that actually exist and are inventoried, while phantom
bills represent subassemblies that exist only temporarily and are not inventorieD.
Ans: D
14. Given the following bill-of-materials:
If the demand for product A is 50 units, what will be the gross requirement for component E?
A. 300
B. 100
C. 200
D. 250
Ans: A
15. The minimum record accuracy required for successful MRP is approximately
A. lower than 90%
B. 90%
C. 95%
D. 99%
Ans: D
16. Given the following bill of materials
If the demand for product A is 50 units, what will be the gross requirement for component E?
A. 50
B. 100
C. 150
D. 200
Ans: A
17. Given the following bill of materials
If the demand for product A is 30 units, and there are on hand 10 units of B and none of C, how many units of part D will be needed?
A. 3
B. 40
C. 70
D. 90
Ans: C
18. "Exploding" the bill of materials means
A. converting the bill of materials into components and raw material requirements
B. identifying the lead time of all the components
C. determining the various components' quantities that are already on hand
D. determining the net requirements for all the components
Ans: A
19. Low level coding means that
A. a final item has only a few levels in the BOM structure
B. it is the code for the missing items
C. a component item is coded at the lowest level at which it appears in the BOM structure
D. the top level of the BOM is below level zero and that BOM's are not organized around the finished product
Ans: C
20. Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is
1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z
is 6 weeks. The cumulative lead time for X is _____ weeks.
A. 48
B. 7
C. 8
D. 10
Ans: C
21. Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is ______ weeks.
A. 6
B. 9
C. 12
D. 18
Ans: B
22. The MPS calls for 110 units of Product M. There are currently 30 of Product M on hanD. Each M requires 4 of Component N. There are 20 units of N on hanD. The gross requirements for N are
A. 150
B. 170
C. 300
D. 320
Ans: C
23. The MPS calls for 50 units of Product A and 60 ofB. There are currently 25 of Product B on hanD. Each A requires 2 of Part C; each B requires 5 ofC. There are 160 units of C available. The net requirements for C are
A. 115
B. 175
C. 240
D. 690
Ans: A
24. The MPS calls for 110 units of Product A, there are currently 60 of Product A on hanD. Each A requires 4 of Part B, there are 20 units of B available. The net requirements for B are
A. 20
B. 120
C. 180
D. 240
Ans: C
25. In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket
A. signals the need to purchase that end item in that period
B. implies that value was scheduled by the MPS
C. signals the need for a negative Planned Order Receipt in that period
D. is impossible
Ans: D
26. A material requirements plan contains information with regard to all of the following except
A. quantities and required delivery dates of all sub-assemblies
B. quantities and required delivery dates of final products
C. the capacity needed to provide the projected output rate
D. inventory on hand for each final product
Ans: C
27. The number of units projected to be available at the end of each time period refers to
A. net requirements
B. scheduled receipts
C. the projected usage of the item
D. the amount projected to be on hand
Ans: D
28. Linking a part requirement with the parent component that caused the requirement is referred to as
A. net requirements planning
B. a time fence
C. pegging
D. Kanban
Ans: C
29. In MRP, system nervousness is caused by
A. management's attempt to continually respond to minor changes in production requirements
B. the use of the lot-for-lot approach
C. management's marking part of the master production schedule as "not to be rescheduled"
D. the use of phantom bills of materials
Ans: A
30. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)
A. modular bills
B. time phasing
C. time fences
D. lot sizing
Ans: C
31. A major strength of MRP is its capability
A. to minimize labor hours used in production
B. for timely and accurate replanning
C. to reduce lead times
D. to maximize production throughput
Ans: B
32. Material requirements plan specify
A. the quantities of the product families that need to be produced
B. the quantity and timing of planned order releases
C. the capacity needed to provide the projected output rate
D. the costs associated with alternative plans 6
Ans: B
33. Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
A. The quantity of gross requirements for a child item is always equal to the quantity of planned
order releases for its parent.
B. The quantity of gross requirements for a child item is equal to the quantity of net requirements
for its parent(s) multiplied by the number of child items used in the parent assembly.
C. The quantity of gross requirements for a child item is always equal to the quantity of gross
requirements for its parent.
D. The quantity and gross requirements for a child item is always equal to the quantity of net
requirements for its parent.
Ans: B
34. Which of the following lot-sizing-techniques results in the lowest holding costs?
A. lot-for-lot
B. EOQ
C. part-period-balancing
D. Wagner-Whitin algorithm
Ans: A
35. What lot sizing technique is generally preferred when inventory holding costs are extremely high?
A. lot-for-lot
B. EOQ
C. part-period balancing
D. the Wagner-Whitin algorithm
Ans: A
36. For the lot-for-lot lot-sizing technique to be appropriate
A. future demand should be known for several weeks
B. setup cost should be relatively small
C. annual volume should be rather low
D. item unit cost should be relatively small
Ans: B
37. MRP II is accurately described as
A. MRP software designed for services
B. MRP with a new set of computer programs that execute on micro-computers
C. MRP augmented by other resource variables
D. usually employed to isolate manufacturing operations from other aspects of an organization
Ans: C
38. Enterprise Resource Planning (ERP) is
A. severely limited by current MRP computer systems
B. not related to MRP
C. an advanced MRP II system that ties-in customers and suppliers
D. not currently practical
Ans:
39. The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is
A. MRP II
B. Enterprise Resource Planning
C. the master production schedule
D. closed-loop MRP 7
Ans: B
40. Distribution Resource Planning (DRP) is
A. a transportation plan to ship materials to warehouses
B. a time-phased stock replenishment plan for all levels of a distribution network
C. a shipping plan from a central warehouse to retail warehouses
D. material requirements planning with feedback loop from distribution centers
Ans: B
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