Question 1

The purpose of the materials requirements planning step is to

Accepted Answer

A)  Calculate PIR.
B)  Calculate CIR.
C)  Calculate net requirements.
D)  Generate procurement proposals requisitions and planned orders) .
E)  Calculate reorder points.F) None of the above
G) A) and B)

Question 2

After the SOP process has generated the production plan,

Accepted Answer

A)  SOP executes the plan.
B)  The plan is conveyed to MRP for execution.
C)  The plan is transferred to demand management.
D)  SOP uses the plan to generate execution plan.
E)  The plan is saved as a production version.F) C) and D)
G) B) and D)

Question 3

Storage area is one of the organizational data elements in material planning.

Accepted Answer

A) True 
 B)False

Question 4

After planning the master schedule items,MRP creates dependent requirements for the components of those items.

Accepted Answer

A) True 
 B)False

Question 5

The MRP controller is a program in the SOP process that is responsible for creating procurement proposals and monitoring material availability.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding a BOM are TRUE?

Accepted Answer

A)  A BOM identifies the components needed to make the material.
B)  A BOM identifies the sequence of operations needed to make the materials.
C)  A BOM component can have its own BOM.
D)  A BOM identifies the material's routing strategy.
E)  A BOM is plant specific.F) C) and E)
G) A) and B)

Question 7

Which of the following are key organizational elements in materials planning?

Accepted Answer

A)  Company code
B)  Shipping point
C)  Plant
D)  Storage location
E)  Sales areaF) C) and E)
G) None of the above

Question 8

Which of the following items represent demand elements of the availability check group?

Accepted Answer

A)  Purchase requisitions
B)  Production orders
C)  Purchase orders
D)  Safety stock
E)  Material reservationsF) A) and E)
G) A) and D)

Question 9

What does SOP stand for?

Accepted Answer

A)  Sales and operations planning
B)  Strategic operations planning
C)  Sales operations planner
D)  Systems operations products
E)  Sales operations projectsF) A) and D)
G) A) and C)

Question 10

MRP type specifies

Accepted Answer

A)  Whether the material is produced in house or is obtained externally.
B)  How material quantities for planning will be calculated.
C)  The production control technique used in planning.
D)  The available time periods the ERP system can use for scheduling.
E)  The strategy for BOM selection.F) B) and D)
G) B) and C)

Question 11

Net requirements calculation is one of the steps in MRP.

Accepted Answer

A) True 
 B)False

Question 12

The main objective of material planning is

Accepted Answer

A)  To minimize the expenses for storing excess inventory.
B)  To balance the demand for materials with the supply.
C)  To shorten the duration of the procurement cycle.
D)  To eliminate excess inventory.
E)  To prevent lost sales.F) A) and E)
G) C) and D)

Question 13

Planned orders are requests to produce materials.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about the MRP step in the material planning process are TRUE?

Accepted Answer

A)  MRP can be executed for one plant.
B)  Planning for specific storage location in not possible with MRP.
C)  MRP can be executed for multiple plants.
D)  MRP can be executed within MRP areas.
E)  MRP can only be executed manually by the MRP controller.F) D) and E)
G) A) and E)

Question 15

Which of the following are elements of the in-house production time?

Accepted Answer

A)  Interoperation
B)  Planned delivery
C)  Processing
D)  GR
E)  SetupF) All of the above
G) A) and C)

Question 16

The money tied up in inventory best represents

Accepted Answer

A)  An opportunity cost.
B)  A liquid asset.
C)  A strategic policy.
D)  A high risk for loss.
E)  A material planning strategy.F) A) and C)
G) A) and B)

Question 17

The ERP system initially uses forward scheduling and employs backward scheduling only if forward scheduling is unsuccessful.

Accepted Answer

A) True 
 B)False

Question 18

For externally procured materials,the planned delivery time and the GR processing time are used to determine procurement time.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements regarding the MRP views of the material master are TRUE?

Accepted Answer

A)  There are four MRP data views.
B)  The system uses the MRP 4 view to select the correct BOM.
C)  There are three MRP data views.
D)  The system uses the MRP 3 view to determine how to procure materials make vs.buy) .
E)  The system uses the MRP 1 view to select the correct BOM.F) B) and E)
G) None of the above

Question 20

Which of the following represent reasons why a company should maintain a safety stock?

Accepted Answer

A)  The ERP system can be configured to automatically prevent inventory from falling below the safety stock levels.
B)  To avoid stock-outs
C)  Maintaining a safety stock of at least 20 pieces is mandatory in the ERP system.
D)  Maintaining a safety stock will guarantee that supply meets demand.
E)  To avoid lost salesF) None of the above
G) B) and E)

Exam 8: Material Planning Process

Which of the following represent reasons why a company should maintain a safety stock?

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After the SOP process has generated the production plan,

Correct AnswerverifiedShow Answer

Storage area is one of the organizational data elements in material planning.

Correct AnswerverifiedShow Answer

Planned orders are requests to produce materials.

Correct AnswerverifiedShow Answer

MRP type specifies

Correct AnswerverifiedShow Answer

The purpose of the materials requirements planning step is to

Correct AnswerverifiedShow Answer

After planning the master schedule items,MRP creates dependent requirements for the components of those items.

Correct AnswerverifiedShow Answer

Which of the following statements regarding a BOM are TRUE?

Correct AnswerverifiedShow Answer

The MRP controller is a program in the SOP process that is responsible for creating procurement proposals and monitoring material availability.

Correct AnswerverifiedShow Answer

What does SOP stand for?

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Which of the following are elements of the in-house production time?

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Which of the following items represent demand elements of the availability check group?

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The ERP system initially uses forward scheduling and employs backward scheduling only if forward scheduling is unsuccessful.

Correct AnswerverifiedShow Answer

Which of the following statements about the MRP step in the material planning process are TRUE?

Correct AnswerverifiedShow Answer

The main objective of material planning is

Correct AnswerverifiedShow Answer

Net requirements calculation is one of the steps in MRP.

Correct AnswerverifiedShow Answer

The money tied up in inventory best represents

Correct AnswerverifiedShow Answer

For externally procured materials,the planned delivery time and the GR processing time are used to determine procurement time.

Correct AnswerverifiedShow Answer

Which of the following statements regarding the MRP views of the material master are TRUE?

Correct AnswerverifiedShow Answer

Which of the following are key organizational elements in materials planning?

Correct AnswerverifiedShow Answer

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