Mrp And Erp

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Question 1

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MRP works best if the inventory items have dependent demand.

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Question 2

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Low-level coding represents items less than $18 per unit.

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Question 3

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Independent demand tends to be more "lumpy" than dependent demand, meaning that we need large quantities followed by periods of no demand.

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Question 4

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Lumpy demand for components results primarily from the periodic scheduling of batch production.

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Question 5

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MRP is used within MRP II systems.

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Question 6

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The master production schedule states which end items are to be produced, in addition to when and how many.

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Question 7

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Net requirements equal gross requirements minus safety stock.

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Question 8

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The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

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Question 9

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Initially, the output from MRP may not represent a feasible schedule.

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Question 10

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MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.

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Question 11

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The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.

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Question 12

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A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

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Question 13

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The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

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Question 14

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The inventory records contain information on the status of each item by time period.

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Question 15

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An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

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Question 16

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MRP II did not replace the basic MRP.

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Question 17

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The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of materials.

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Question 18

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The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.

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Question 19

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The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.

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Question 20

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A net-change MRP system is one that is updated periodically but not less frequently than once a week.

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