CPIM Detailed Scheduling and Planning (MRP & Capacity) 1 — Questions and Answers
Question 1: What are the three primary inputs to Material Requirements Planning (MRP)?
- Purchase orders, work orders, and invoices
- Master production schedule, bill of materials, and inventory records (Correct answer)
- Sales orders, capacity plan, and supplier contracts
- Production plan, labor standards, and machine rates
Correct answer: Master production schedule, bill of materials, and inventory records
MRP requires the MPS to define what and when to produce, the BOM to define component relationships, and inventory records to determine what is on hand or on order.
Question 2: What does 'net requirements' mean in MRP?
- Total gross requirements minus on-hand inventory and scheduled receipts (Correct answer)
- The total demand for a component before offsetting existing stock
- The reorder point for a purchased item
- The difference between planned and actual production
Correct answer: Total gross requirements minus on-hand inventory and scheduled receipts
Net requirements are calculated by subtracting on-hand inventory and scheduled receipts from gross requirements to determine what additional supply is needed.
Question 3: In MRP, 'lot-for-lot' ordering means:
- Ordering a fixed quantity each time
- Ordering exactly the net requirement for each period with no extra (Correct answer)
- Ordering based on economic order quantity
- Combining multiple periods' requirements into one order
Correct answer: Ordering exactly the net requirement for each period with no extra
Lot-for-lot (L4L) is an MRP lot-sizing rule that orders exactly the quantity needed each period, minimizing carrying costs but potentially increasing ordering costs.
Question 4: Capacity Requirements Planning (CRP) operates on which planning inputs?
- The aggregate production plan and bills of resources
- Planned and released work orders from MRP and routing data (Correct answer)
- The master schedule and rough-cut bill of resources
- Supplier lead times and purchasing contracts
Correct answer: Planned and released work orders from MRP and routing data
CRP uses MRP-generated planned and released orders along with routing data (operations, run times, setup times) to calculate detailed load on work centers.
Question 5: What is the purpose of 'pegging' in MRP?
- Linking component requirements back to the parent demand that caused them (Correct answer)
- Assigning work orders to specific machines
- Fixing the MPS inside the planning fence
- Allocating overhead costs to production orders
Correct answer: Linking component requirements back to the parent demand that caused them
Pegging traces the source of each component requirement up through the BOM to the specific parent orders or MPS entries that generated them.
Question 6: An MRP 'action message' to 'reschedule in' means the planner should:
- Cancel the order because demand has disappeared
- Move the due date of an existing order to an earlier date (Correct answer)
- Increase the order quantity to cover additional demand
- Release a new planned order
Correct answer: Move the due date of an existing order to an earlier date
A 'reschedule in' message indicates that a scheduled receipt is due after the requirement date and should be expedited or moved earlier.
What are the three primary inputs to Material Requirements Planning (MRP)?