CPIM Detailed Scheduling and Planning 1 — Questions and Answers
Question 1: What is the primary goal of Material Requirements Planning (MRP)?
- To determine when and how much material to order or produce (Correct answer)
- To manage customer relationships
- To forecast long-term sales
- To schedule employee shifts
Correct answer: To determine when and how much material to order or produce
MRP calculates the quantity and timing of material orders and production orders needed to meet the MPS.
Question 2: Which MRP input file contains the product structure showing components needed for each parent item?
- Bill of Materials (BOM) (Correct answer)
- Item master file
- Inventory status record
- Routing file
Correct answer: Bill of Materials (BOM)
The bill of materials lists all components, subassemblies, and raw materials required to produce each parent item.
Question 3: What is 'net requirements' in MRP?
- Gross requirements minus on-hand inventory and scheduled receipts (Correct answer)
- Total customer orders received
- The sum of all open purchase orders
- Forecast demand minus safety stock
Correct answer: Gross requirements minus on-hand inventory and scheduled receipts
Net requirements are calculated by subtracting available inventory and scheduled receipts from gross requirements.
Question 4: Which lot-sizing rule orders exactly the quantity needed period by period?
- Lot-for-lot (LFL) (Correct answer)
- Economic Order Quantity (EOQ)
- Fixed order quantity
- Period order quantity
Correct answer: Lot-for-lot (LFL)
Lot-for-lot orders exactly the net requirement for each period, resulting in no excess inventory carried forward.
Question 5: What is 'planned order release' in MRP?
- An MRP-generated order offset back by lead time, ready to be released (Correct answer)
- A completed purchase order
- An invoice from a supplier
- A quality inspection record
Correct answer: An MRP-generated order offset back by lead time, ready to be released
A planned order release is offset back in time by the item's lead time so that the order arrives when needed.
Question 6: What does 'pegging' in MRP allow a planner to do?
- Trace a material requirement back to the specific parent demand that caused it (Correct answer)
- Attach bar codes to inventory
- Fix the production schedule permanently
- Link invoices to purchase orders
Correct answer: Trace a material requirement back to the specific parent demand that caused it
Pegging traces any MRP requirement up through the BOM levels to identify the specific end-item demand that generated it.
CPIM Detailed Scheduling and Planning 1
What is the primary goal of Material Requirements Planning (MRP)?