CPM MRP & Production Control 2

Question 1

In MRP, what is the purpose of 'time-phasing' requirements?

Accepted Answer

To offset gross requirements by lead time so orders are placed at the right time

Answer

Time-phasing offsets gross requirements by the item's lead time so that planned order releases occur early enough to receive materials when needed.

Question 2

Which MRP input file specifies the raw materials, components, and sub-assemblies required to build one unit of a parent item?

Accepted Answer

Bill of Materials

Answer

The Bill of Materials (BOM) defines the parent-child relationships and quantities needed to produce each assembly level.

Question 3

A company has a gross requirement of 500 units, scheduled receipts of 100 units, and on-hand inventory of 75 units. What is the net requirement?

Accepted Answer

325 units

Answer

Net requirement = Gross requirement − Scheduled receipts − On-hand = 500 − 100 − 75 = 325 units.

Question 4

What does 'pegging' accomplish in an MRP system?

Accepted Answer

Traces a component's demand back to the parent order that generated it

Answer

Pegging links a lower-level component requirement to the specific parent order that created the demand, supporting root-cause analysis of shortages.

Question 5

Which lot-sizing rule minimizes holding costs while potentially increasing setup costs?

Accepted Answer

Lot-for-Lot

Answer

Lot-for-Lot orders exactly what is needed each period, eliminating excess inventory and holding costs but requiring a setup each time there is demand.

(CPM) Certified Plant Manager Practice Test

(CPM) Certified Plant Manager Practice Test

CPM MRP & Production Control 2