Which of the following most closely describes dependent demand?
A. demand generated by suppliers
B. estimates of demand using regression analysis of independent variables
C. derived demand
D. demands placed on suppliers by their customers
E. net material requirements - Answer-C. derived demand
A visual depiction of the subassemblies and components that are needed to produce
and/or assemble a product is called a(n):
A. assembly time chart
B. product structure tree
C. MRP II
D. pegging
E. Gantt chart - Answer-B. product structure tree
Under lot-for-lot, order sizes for component parts are essentially determined directly
from which one of the following?
A. gross requirements
B. net requirements
C. economic order quantity
D. gross requirements - net requirements
E. net requirements - amount on-hand - Answer-B. net requirements
Periodic updating of an MRP system to account for all changes which have occurred
within a given time interval is called:
A. pegging
B. planned order release
C. net change
D. regenerative
E. exception report - Answer-D. regenerative
A recent effort to expand the scope of production resource planning by involving
other functional areas in the planning process has been:
A. material requirements planning
B. capacity requirements planning
C. manufacturing resources planning
D. Just-In-Time planning
E. multifunctional relationships planning - Answer-C. manufacturing resources
planning
In the basic EOQ model, if annual demand doubles, how does EOQ change?