Mixed Deck — All MRP Topics Flashcards

How does supply chain management improve business performance?

Answer: By optimizing costs & improving quality

Effective supply chain management enhances business performance by streamlining operations, reducing waste, and improving overall efficiency across the entire chain. This optimization leads to lower operational costs, better resource utilization, improved product quality, and ultimately, increased customer satisfaction and profitability.

A firm planned order (FPO) in MRP differs from a regular planned order because it:

Answer: Is protected from automatic rescheduling by the MRP system

Firm planned orders are frozen by the planner and will not be automatically changed by MRP regeneration runs.

In MRP Certified Agents, what is the PRIMARY purpose of conducting regular safety drills and exercises?

Answer: To ensure personnel can respond effectively in emergencies

Regular safety drills ensure that all personnel are prepared to respond effectively during actual emergencies.

What is a supplier development program designed to accomplish?

Answer: Work collaboratively with suppliers to improve their capabilities, quality, and delivery performance

Supplier development programs involve the buyer providing resources, training, or technical assistance to help suppliers improve performance metrics that directly affect the buyer's operations.

Which technique in MRP calculates net requirements by subtracting projected on-hand inventory from gross requirements?

Answer: Netting

Netting is the MRP process of subtracting on-hand inventory and scheduled receipts from gross requirements to determine what actually needs to be ordered.

Which of the following is a key difference between infinite loading and finite loading in scheduling?

Answer: Infinite loading ignores capacity limits; finite loading enforces them

Infinite loading calculates loads without enforcing capacity limits, while finite loading caps work at available capacity.

What challenge does MRP help to address in manufacturing?

Answer: Managing inventory & schedules

MRP systems are specifically designed to address the complex challenges of managing inventory levels and production schedules in manufacturing environments. By calculating precise material needs and timing, MRP helps companies optimize resource utilization, reduce waste, and meet production deadlines effectively.

What does the term 'demonstrated capacity' mean in production scheduling?

Answer: The actual output achieved based on historical performance

Demonstrated capacity is calculated from actual historical performance data, not theoretical maximums.

What is the three-way match process in accounts payable and procurement?

Answer: Matching the purchase order, goods receipt, and supplier invoice before approving payment

Three-way matching verifies that the purchase order, goods receipt, and supplier invoice all agree on quantity and price before authorizing payment, reducing payment errors and fraud.

Which statement BEST describes the relationship between MRP Certified Agents certification and industry evolution?

Answer: Requirements evolve periodically to reflect advances in knowledge and practice

Certification requirements evolve to keep pace with professional and technological advances.

A production schedule shows a work center loaded at 130% of its rated capacity for three consecutive weeks. The BEST corrective action is to:

Answer: Reschedule orders or add overtime/shifts

Overloads must be resolved by rescheduling orders, adding capacity, or splitting lots.

Why is inventory accuracy critical for MRP?

Answer: To ensure accurate planning

Inventory accuracy is paramount for MRP because the system uses current inventory levels to calculate net requirements. If inventory records are inaccurate, MRP might either over-order materials (leading to excess inventory) or under-order (leading to stockouts and production delays), undermining the entire planning process.

Which of the following best describes 'dependent demand' in the context of MRP?

Answer: Demand for components derived from the production plan for parent items

Dependent demand is derived mathematically from the demand for parent items using the BOM and is the core demand type that MRP manages.

A manufacturer calculates that its work center efficiency is 85% and utilization is 90%. What is the rated capacity if the nominal capacity is 400 hours per week?

Answer: 306 hours

Rated capacity = nominal capacity × utilization × efficiency = 400 × 0.90 × 0.85 = 306 hours.

Which of the following best describes 'regenerative MRP'?

Answer: A complete recalculation of all MRP records from scratch on a periodic basis

Regenerative MRP reprocesses the entire MRP database from the MPS downward on a scheduled basis (typically weekly), ensuring all records reflect the current plan.

When evaluating suppliers for MRP integration, which metric measures the percentage of orders delivered on or before the required date?

Answer: On-time delivery rate

On-time delivery rate measures the percentage of purchase orders fulfilled by the supplier on or before the scheduled delivery date, which is critical for MRP schedule integrity.

A company uses period order quantity (POQ) as its lot sizing rule. If the POQ interval is 4 weeks and net requirements are 50, 0, 30, and 20 units over those weeks, what is the planned order quantity?

Answer: 100 units

POQ aggregates all net requirements within the specified interval (50+0+30+20=100), placing one order to cover the entire period.

Why is supplier relationship management important?

Answer: To maintain reliable and collaborative supplier relationships

Supplier Relationship Management (SRM) is crucial for cultivating strong, collaborative, and mutually beneficial relationships with key suppliers. These relationships ensure a reliable supply of quality materials, facilitate favorable terms, encourage innovation, and enhance the overall resilience and efficiency of the supply chain.

A production planner needs to evaluate MPS feasibility quickly without full routing detail. Which tool is most appropriate?

Answer: Rough-Cut Capacity Planning (RCCP)

RCCP uses bill of resources or capacity bills to quickly check critical resource feasibility of the MPS.

Which scenario best illustrates the 'nervousness' problem in MRP systems?

Answer: Small changes in master schedule demand causing large, frequent changes to lower-level planned orders

MRP nervousness occurs when minor demand fluctuations at higher BOM levels cascade into disproportionately large and frequent replanning of lower-level components.