Overview

Chapter 11
Resource Planning

11.1 Material Requirements Planning

1) Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.
Answer: TRUE
Difficulty: Easy
Keywords: material requirements planning (MRP)
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

2) A parent is any item manufactured from one or more components.
Answer: TRUE
Difficulty: Easy
Keywords: parent, component
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

3) Dependent demand for an item occurs because the quantity required for it varies with the production plans of one or more parents.
Answer: TRUE
Difficulty:Moderate
Keywords: dependent demand, parent
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

4) A component is an item that may go through one or more operations to be transformed into or become part of one or more parents.
Answer: TRUE
Difficulty: Easy
Keywords: component, parent, transform
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

5) If the demand for an independent demand item is continuous and uniform, so will the planned order releases of its components.
Answer: FALSE
Difficulty: Moderate
Keywords: dependent demand, continuous
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

6) Which of the following is not an example of dependent demand items?
A) shoelaces, shoes
B) wheels, car
C) carafes, coffeemakers
D) ice skates, roller skates
Answer: D
Difficulty: Moderate
Keywords: dependent demand
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

7) Any item manufactured from one or more components is a(n):
A) parent.
B) component.
C) intermediate item.
D) purchased item.
Answer: A
Difficulty: Moderate
Keywords: parent, component
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

8) Under which one of the following circumstances can an MRP system be used to its best advantage?
A) when the item’s demand depends only on customer demand
B) when the item’s demand is uniform
C) when the item’s demand is constant
D) when the item’s demand depends on the production plans of its parent(s)
Answer: D
Difficulty: Moderate
Keywords: material requirements planning (MRP)
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

9) In MRP, a(n) ________ is any item manufactured from one or more components.
Answer: parent
Difficulty: Moderate
Keywords: parent, component
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.
10) In MRP, a(n) ________ is an item that may go through one or more operations to be transformed into or become part of one or more parents.
Answer: component
Difficulty: Moderate
Keywords: component, parent
Learning Outcome: Apply the process of materials requirements planning (MRP)
AACSB: Application of Knowledge
Learning Obj.: Explain how the concept of dependent demand in material requirements planning is fundamental to resource planning.

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