CPIM CPIM Master Planning and MRP Questions and Answers 1 — Questions and Answers
Question 1: What is the primary input to the Material Requirements Planning (MRP) process?
- The Master Production Schedule (MPS) (Correct answer)
- The inventory status record only
- The sales forecast only
- The bill of materials only
Correct answer: The Master Production Schedule (MPS)
MRP uses the MPS, bill of materials, and inventory records together as its three primary inputs to calculate net requirements.
Question 2: In MRP, what does 'net requirements' represent?
- Gross requirements minus projected on-hand inventory and scheduled receipts (Correct answer)
- Total demand for all parent items
- Planned order releases for the current period
- Safety stock levels across all SKUs
Correct answer: Gross requirements minus projected on-hand inventory and scheduled receipts
Net requirements are calculated by subtracting available inventory and scheduled receipts from gross requirements.
Question 3: What is a 'time bucket' in the context of MRP?
- A discrete planning period, typically one week, used to organize requirements (Correct answer)
- The total lead time for a purchased component
- A buffer period added to safety lead time
- The time between two consecutive cycle counts
Correct answer: A discrete planning period, typically one week, used to organize requirements
A time bucket is the planning period unit (commonly one week) used to organize MRP calculations on a time-phased basis.
Question 4: Which term describes the process of working backwards from planned order releases to determine component requirements?
- Explosion (Correct answer)
- Pegging
- Implosion
- Netting
Correct answer: Explosion
Explosion in MRP refers to extending requirements down through the bill of materials from parent to child components.
Question 5: What is the purpose of 'pegging' in an MRP system?
- To trace component demand back to the specific parent order that created it (Correct answer)
- To calculate safety stock for each item
- To consolidate multiple planned orders into one
- To convert planned orders into firm planned orders
Correct answer: To trace component demand back to the specific parent order that created it
Pegging allows planners to trace any component requirement back to the parent demand source, aiding in exception management.
Question 6: In MRP, what is a 'planned order release' (POR)?
- An MRP-generated recommendation to release a production or purchase order at a specific time (Correct answer)
- A confirmed purchase order sent to a supplier
- A shop floor dispatch instruction
- A physical movement of material to the production floor
Correct answer: An MRP-generated recommendation to release a production or purchase order at a specific time
A planned order release is a system-generated recommendation that must be reviewed and approved by a planner before becoming a firm order.
What is the primary input to the Material Requirements Planning (MRP) process?