Question 1

The lot size independent in-house production time is used in which of the following scenarios?

Accepted Answer

A)  The lot size is fixed.
B)  Processing time is constant.
C)  Processing time is very short compared to the setup and interoperation times.
D)  Processing time is long in comparison to the setup and interoperation times.
E)  The quantity of material to be produced varies.F) A) and D)
G) B) and C)

Question 2

Which of the following statements concerning maintaining inventory at high levels are TRUE?

Accepted Answer

A)  The longer the materials remain in storage,the more money the company loses.
B)  Maintaining high levels of inventory can lead to serious write-offs.
C)  Maintaining high levels of inventory is a recommended material planning policy.
D)  Maintaining high levels of inventory can incur insurance costs.
E)  The company may lose money storing excessive inventory,but the customer's interest must be the company's highest priority.F) All of the above
G) None of the above

Question 3

The input to MRP is the independent requirement for the finished goods.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following represent procurement types?

Accepted Answer

A)  Consumption-based planning
B)  External
C)  Section 2
D)  None
E)  No planningF) A) and E)
G) B) and D)

Question 5

The lot size calculation step in MRP is used to determine whether there is a need to procure the material.

Accepted Answer

A) True 
 B)False

Question 6

Whether SOP is required depends on the production planning strategy used for the material.

Accepted Answer

A) True 
 B)False

Question 7

A product group groups products with similar planning characteristics,such as similar types.

Accepted Answer

A) True 
 B)False

Question 8

MPS is a mandatory step in the planning process and is usually followed by MRP.

Accepted Answer

A) True 
 B)False

Question 9

Requirements in the material planning process specify

Accepted Answer

A)  The master data requirements.
B)  How the material planning should be executed.
C)  The work center capacity.
D)  Requirements for the different modes of transportation.
E)  How many of the materials are needed and when they are needed.F) D) and E)
G) B) and D)

Question 10

A BOM is used only in the materials planning process.

Accepted Answer

A) True 
 B)False

Question 11

The proposals that material planning generates typically are in the form of

Accepted Answer

A)  A planning proposal.
B)  Planned orders.
C)  A material order list.
D)  Purchase requisitions.
E)  Purchase list.F) B) and E)
G) D) and E)

Question 12

The strategy group defines the strategy the system uses to determine whether a quantity of material will be available on a specific day.

Accepted Answer

A) True 
 B)False

Question 13

Given the following information,use the net requirement calculation to calculate the available stock.MRP type is MPS.Plant stock = 100 Receipts = 20
Issues = 10
Safety stock = 30

Accepted Answer

A)  120
B)  130
C)  80
D)  70
E)  110F) A) and B)
G) C) and E)

Question 14

In-house production is the most common procurement type for raw materials.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements concerning the material planning process are NOT TRUE?

Accepted Answer

A)  It can involve the creation of an operations plan.
B)  The demand management step creates requirements for individual materials.
C)  The final procurement proposals trigger either the production or procurement process.
D)  The requirements step specifies the way the materials will be transported.
E)  MRP uses sales objectives to generate the final procurement proposals.F) A) and E)
G) C) and E)

Question 16

Which of the following are common time estimates utilized during the planning process?

Accepted Answer

A)  Production planning time
B)  GR processing time
C)  Planned delivery time
D)  Planned receiving time
E)  In-house production timeF) None of the above
G) B) and D)

Question 17

Which of the following are production control techniques as indicated by the MRP type in the material master?

Accepted Answer

A)  Consumption-based planning
B)  External control
C)  Internal control
D)  Sales order-based planning
E)  No planningF) A) and B)
G) A) and C)

Question 18

Typically,semifinished goods and raw materials have dependent requirements.

Accepted Answer

A) True 
 B)False

Question 19

In the determine procurement proposal step,for materials with the procurement type of internal,MRP will:

Accepted Answer

A)  Generate purchase requisitions.
B)  Provide three options.
C)  Prompt the MRP controller to select the appropriate production version.
D)  Transfer this step to MPS.
E)  Always generate planned orders.F) A) and D)
G) D) and E)

Question 20

Which of the following statements concerning the outcome of the material planning process are NOT TRUE?

Accepted Answer

A)  The outcome can be multiple procurement proposals.
B)  The outcome is always a single procurement proposal.
C)  The outcome triggers the sales and operations planning step.
D)  The outcome triggers the forecasting planning step.
E)  The outcome can trigger either the production or the procurement process.F) B) and E)
G) B) and D)

Exam 8: Material Planning Process

MPS is a mandatory step in the planning process and is usually followed by MRP.

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A product group groups products with similar planning characteristics,such as similar types.

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Which of the following represent procurement types?

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The input to MRP is the independent requirement for the finished goods.

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A BOM is used only in the materials planning process.

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The lot size calculation step in MRP is used to determine whether there is a need to procure the material.

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Which of the following are production control techniques as indicated by the MRP type in the material master?

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Which of the following statements concerning the outcome of the material planning process are NOT TRUE?

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The strategy group defines the strategy the system uses to determine whether a quantity of material will be available on a specific day.

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Which of the following statements concerning maintaining inventory at high levels are TRUE?

Correct AnswerverifiedShow Answer

The lot size independent in-house production time is used in which of the following scenarios?

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In-house production is the most common procurement type for raw materials.

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The proposals that material planning generates typically are in the form of

Correct AnswerverifiedShow Answer

Which of the following are common time estimates utilized during the planning process?

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Whether SOP is required depends on the production planning strategy used for the material.

Correct AnswerverifiedShow Answer

Given the following information,use the net requirement calculation to calculate the available stock.MRP type is MPS.Plant stock = 100 Receipts = 20 Issues = 10 Safety stock = 30

Correct AnswerverifiedShow Answer

Requirements in the material planning process specify

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Typically,semifinished goods and raw materials have dependent requirements.

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In the determine procurement proposal step,for materials with the procurement type of internal,MRP will:

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Which of the following statements concerning the material planning process are NOT TRUE?

Correct AnswerverifiedShow Answer

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