Enterprise Resource Planning (ERP)
A computer system that integrates application programs in accounting, sales, manufacturing and other functions in a firm
Material Requirements Planning (MRP)
The logic for determining the number of parts, components, and materials needed to produce a product
Assemble to stock
Combines parts into a finished product
Fabricate to stock
Items are manufactured by machine rather than assembled from parts
Assembled to order
A final assembly is made from standard orders from customer
Fabricate to order
items are manufactured by machine to customer order
Manufacture to order
Items are fabricated or assembled completely to customer specification
Master Production Schedule (MPS)
Time-phased plan specifying how many and when the firm plans to build each end item
Bill of Materials
Contains the complete product description, listing the materials, parts, and components along with the sequence in which the product is created
Lot sizes
The part quantities issued in the planned order receipt and planned order release sections of an MRP Schedule
Lot-for-Lot
Produces exactly what is needed each week with none carried over into future periods
Minimizes carrying cost
Does not take into account setup costs or capacity limitations.
Least Total Cost
a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup costs for various lot sizes and then selects the lot in which these are most nearly equal
Least Unit Cost
a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost
Which of the following industry types have high expected benefits from the application of MRP?
Fabricate-to-stock
Fabricate-to-order
Assemble-to-stock
Continuous process
Assemble-to-stock
Which of the following is an input to the master production schedule (MPS)?
Inventory records file
The aggregate plan
The exception report
The bill of materials
The aggregate plan
Which of the following is one of the main purposes of a MRP system?
Educate personnel in basic work rules
Determine the amount of materials needed to produce each end item
Stimulate the work force
Decrease labor requirements
Determine the amount of materials needed to produce each end item
MRP systems seek to achieve which of the following?
Minimize lot sizes
Determine the number of dependent demand items needed
Relieve capacity bottlenecks
Provide a yardstick for future improvements
Determine the number of dependent demand items needed
Which of the following can be used for lot sizing in an MRP system?
Low-level coding
Time bucket size
Least unit cost
Inventory record file
Least unit cost
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
A consistent lag of supply behind demand
Minimized carrying costs
Minimized set-up costs
Minimized quality problems
Minimized carrying costs
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?
Economic orde
Least total cost
Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying costs for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost?
Economic order quantity
L
Least unit cost
Which of the following is not a lot sizing technique used in MRP systems?
Lot-for-lot (L4L)
Economic order quantity (EOQ)
Least total cost (LTC)
Warehouse loading factor (WLF)
Warehouse loading factor (WLF)
Which of the following industry types will not benefit greatly from the application of MRP?
Fabricate-to-order
Assemble-to-stock
Assemble-to-order
Manufacture-to-order
Fabricate-to-order
The ________________ sizing technique produces exactly what is needed each week with none carried over into future periods.
ERP
Least Total Cost
Lot-for-Lot
Least Unit Cost
Lot-for-Lot
A computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm:
MRP
ERP
TQM
ATP
ERP
A means for determining the number of parts, components, and materials needed to produce a product:
MRP
ERP
TQM
ATP
MRP
The ______ contains the complete product description, listing the materials, parts, and components along with the sequence in which the product is created.
Specification
Recipe
Bill of Materials
Plant Policy
Bill of Materials
_____________ drives MRP
Dependent demand
Inventory level
The weather
Dependent demand
A dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup costs for various lot sizes and then selects the lot in which these are most nearly equal:
ERP
Least Total Cost
Lot-for-Lot
Least Unit Cost
Least Total Cost