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MQM 227 Ch.21 Questions and Answers 100% Correct

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MQM 227 Ch.21 Questions and Answers 100% Correct

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MQM 227 Ch.21 Questions and Answers 100% Correct
Product demand for end items comes primarily from two main sources. What are they? Check
both.

Back orders

The aggregate production plan

Firm customer orders

Customer orders of specific parts and components either as spares or for service and repair —
Answer: The aggregate production plan

Firm customer orders

n industry, materials requirements planning also goes by the acronym: —Answer: MRP

Finished goods purchased by individuals external to the organization are considered what? —
Answer: Independent demand items

In which industry type does MRP provide the highest expected benefits? Check all that apply.

Engineer-to-order

Assemble-to-stock

Process

Make-to-stock

Make-to-order

Assemble-to-order —Answer: Engineer-to-order

Assemble-to-stock

Assemble-to-order

Includes industries such as foundries, rubber and plastics, specialty paper, chemicals, paint,
drug, food processors. —Answer: Process

Select all that apply

Which of the following are sources of demand for products in a material requirements planning
system?

Customer orders from sales personnel

Customer back orders from the previous period

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, Inter-department transactions

Orders for specific components needed in repair —Answer: Customer orders from sales
personnel

Inter-department transactions

Orders for specific components needed in repair

Which of the following statements best characterizes an MRP system? —Answer: A system-
driven logic that allows a company to tie the production functions together from a material
planning and control view.

The master production schedule is a major input to the ___ process. —Answer: MRP

The requirements of dependent demand items tend to become more and more ___ as we go
farther down into the product creation sequence. —Answer: bumpy

MRP systems tend to work best in companies where products are made in ___ using the same
productive equipment. —Answer: batches

A final assembly is made from standard options that the customer chooses. —Answer:
Assemble-to-order

Why might the master scheduler modify the master production schedule? Check all that apply.

Raw materials inventory is too high

Vendors want the firm to make different products

Master schedule requires excessive resources

Work-in-process levels are too high

One or more work centers lacks adequate capacity —Answer: Master schedule requires
excessive resources

One or more work centers lacks adequate capacity

Generally, the master production schedule deals with ___ ___. —Answer: Blank 1: end

Blank 2: items

In which of the following product manufacturing scenarios, would MRP provide high benefit?
Check all that apply.

appliances

motors

trucks

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