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1. 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.
6	9
12	18

2. 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 _____.
150	170
300	320

3. The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. The net requirements for C are ____.
115	175
240	690

4. 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 ____.
20	120
180	240

5. In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket _____.
signals the need to purchase that end item in that period	implies that value was scheduled by the MPS
signals the need for a negative Planned Order Receipt in that period	is impossible

6. A material requirements plan contains information with regard to all of the following except_____.
quantities and required delivery dates of all sub-assemblies	quantities and required delivery dates of final products
the capacity needed to provide the projected output rate	inventory on hand for each final product

7. The number of units projected to be available at the end of each time period refers to _____.
net requirements	scheduled receipts
the projected usage of the item	the amount projected to be on hand

8. Linking a part requirement with the parent component that caused the requirement is referred to as _____.
net requirements planning	a time fence
pegging	Kanban

9. In MRP, system nervousness is caused by _____.
management's attempt to continually respond to minor changes in production requirements	the use of the lot-for-lot approach
management's marking part of the master production schedule as "not to be rescheduled"	the use of phantom bills of materials

10. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)
modular bills	time phasing
time fences	lot sizing

11. A major strength of MRP is its capability_____.
to minimize labor hours used in production	for timely and accurate replanning
to reduce lead times	to maximize production throughput

12. Material requirements plan specify _____.
the quantities of the product families that need to be produced	the quantity and timing of planned order releases
the capacity needed to provide the projected output rate	the costs associated with alternative plans 6

13. Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent	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
The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent	The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent

14. Which of the following lot-sizing-techniques results in the lowest holding costs?
lot-for-lot	EOQ
part-period-balancing	Wagner-Whitin algorithm

15. What lot sizing technique is generally preferred when inventory holding costs are extremely high?
lot-for-lot	EOQ
part-period balancing	the Wagner-Whitin algorithm

16. For the lot-for-lot lot-sizing technique to be appropriate ______.
future demand should be known for several weeks	setup cost should be relatively small
annual volume should be rather low	item unit cost should be relatively small

17. MRP II is accurately described as _____.
MRP software designed for services	MRP with a new set of computer programs that execute on micro-computers
MRP augmented by other resource variables	usually employed to isolate manufacturing operations from other aspects of an organization

18. In what way are Distribution Resource Planning (DRP) and Material Requirements Planning (MRP) similar?
Both employ similar logic and procedures	Both are employed in a manufacturing organization
Both work most efficiently with largest lot sizes	Both are employed by retail organizations

19. 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 ____.
MRP II	Enterprise Resource Planning
the master production schedule	closed-loop MRP 7

20. Distribution Resource Planning (DRP) is______.
a transportation plan to ship materials to warehouses	a time-phased stock replenishment plan for all levels of a distribution network
a shipping plan from a central warehouse to retail warehouses	material requirements planning with feedback loop from distribution centers