Material Requirements Planning & ERP,
Chap 1/8.3/11/ 14- Concepts in ERP
Revised Q&A 2024
1) Which of the following statements regarding Wheeled Coach is FALSE?
A) Wheeled Coach has found competitive advantage through MRP.
B) Wheeled Coach builds ambulances in a repetitive process.
C) Wheeled Coach's MRP system allowed the company to meet tight
schedules, but caused inventory to rise.
D) Wheeled Coach's MRP system maintains excellent record integrity.
E) Low inventory and high quality are two positive outcomes of Wheeled
Coach's use of MRP.
• C) Wheeled Coach's MRP system allowed the company to meet tight
schedules, but caused inventory to rise.
E) The process must adhere to stringent quality control standards.
2) Which of the following is NOT one of the four key tasks that Wheeled Coach
insists are necessary for successful MRP implementation?
A) The material plan must meet both schedule requirements and facility
capabilities.
B) The plan must be executed as designed.
C) Inventory investment must be minimized.
D) Excellent record integrity must be maintained.
E) The process must adhere to stringent quality control standards.
• E) The process must adhere to stringent quality control standards.
,3) Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children.
• D) there is a clearly identifiable parent.
4) Dependent demand and independent demand items differ in that:
A) for any product, all components are dependent-demand items.
B) the need for independent-demand items is forecast.
C) the need for dependent-demand items is calculated.
D) All of the above are true.
E) None of the above is true.
• D) All of the above are
5) Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels
, • increased quality
6) Effective use of MRP and other dependent demand models does not require
which of the following?
A) master production schedule
B) bill of materials
C) inventory availability
D) lead times
E) cost of individual components
• E) cost of individual components
7) Firms making many different final products use ________ to facilitate
production scheduling.
A) planning bills
B) modular bills
C) phantom bills
D) overdue bills
• E) gross requirements bills
8) Which of the following statements best compares modular bills and
phantom bills?
A) Both pertain to assemblies that are not inventoried.
B) There is no difference between the two.
C) Both pertain to assemblies that are inventoried.
D) Modular bills are used for assemblies that are not inventoried, unlike
phantom bills.
Chap 1/8.3/11/ 14- Concepts in ERP
Revised Q&A 2024
1) Which of the following statements regarding Wheeled Coach is FALSE?
A) Wheeled Coach has found competitive advantage through MRP.
B) Wheeled Coach builds ambulances in a repetitive process.
C) Wheeled Coach's MRP system allowed the company to meet tight
schedules, but caused inventory to rise.
D) Wheeled Coach's MRP system maintains excellent record integrity.
E) Low inventory and high quality are two positive outcomes of Wheeled
Coach's use of MRP.
• C) Wheeled Coach's MRP system allowed the company to meet tight
schedules, but caused inventory to rise.
E) The process must adhere to stringent quality control standards.
2) Which of the following is NOT one of the four key tasks that Wheeled Coach
insists are necessary for successful MRP implementation?
A) The material plan must meet both schedule requirements and facility
capabilities.
B) The plan must be executed as designed.
C) Inventory investment must be minimized.
D) Excellent record integrity must be maintained.
E) The process must adhere to stringent quality control standards.
• E) The process must adhere to stringent quality control standards.
,3) Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children.
• D) there is a clearly identifiable parent.
4) Dependent demand and independent demand items differ in that:
A) for any product, all components are dependent-demand items.
B) the need for independent-demand items is forecast.
C) the need for dependent-demand items is calculated.
D) All of the above are true.
E) None of the above is true.
• D) All of the above are
5) Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels
, • increased quality
6) Effective use of MRP and other dependent demand models does not require
which of the following?
A) master production schedule
B) bill of materials
C) inventory availability
D) lead times
E) cost of individual components
• E) cost of individual components
7) Firms making many different final products use ________ to facilitate
production scheduling.
A) planning bills
B) modular bills
C) phantom bills
D) overdue bills
• E) gross requirements bills
8) Which of the following statements best compares modular bills and
phantom bills?
A) Both pertain to assemblies that are not inventoried.
B) There is no difference between the two.
C) Both pertain to assemblies that are inventoried.
D) Modular bills are used for assemblies that are not inventoried, unlike
phantom bills.
