If safety stock is desired, it should be built into which portion of MRP?
A) any
B) none
C) raw materials
D) finished goods
E) either C or D
Answer: E
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Operation Management Chapter 14
- Which of the following is FALSE concerning enterprise resource planning (ERP)?
- Enterprise resource planning (ERP):
- Distribution resource planning (DRP) is:
- Which of the following statements regarding MRP in services is TRUE?
- MRP II is accurately described as:
- If a load report (resource requirements profile) shows a work center scheduled beyond capacity:
- Capacity planning in closed-loop MRP:
- Which MRP lot-sizing technique should be considered to be the goal (i.e., the technique of choice under ideal conditions)?
- Which of the following is TRUE regarding the POQ lot-sizing method?
- What does the POQ interval equal?
- Which lot-sizing technique orders the quantity needed during a predetermined time between orders?
- Which of the following statements regarding lot-sizing is TRUE?
- For the lot-sizing technique known as lot-for-lot to be appropriate:
- What lot-sizing technique is generally preferred when inventory holding costs are extremely high?
- Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?
- Which of the following lot-sizing techniques results in the lowest holding costs?
- What is one of the tools that is particularly useful in reducing system nervousness in an MRP system?
- In MRP, system nervousness is caused by:
- What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement?
- Distortion in MRP systems can be minimized when safety stock is held at the:
- In MRP, the number of units projected to be available at the beginning of each time period refers to:
- An order for 110 units of Product A has been placed. There are currently 60 units of Product A on hand. Each A requires 4 units of Part B. There are 20 units of B available. What are the net requirements for B?
- An order for 50 units of Product A and 60 of B has been placed. There are currently 25 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. What are the net requirements for C?
- An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand. What are the net requirements for N?
- Which of the following statements regarding the gross material requirements plan is TRUE?