MRP Material Requirements Planning Fundamentals 3

Question 1

The Economic Order Quantity (EOQ) lot-sizing rule minimizes the sum of which two cost categories?

Accepted Answer

Ordering costs and carrying costs

Answer

EOQ balances ordering (or setup) costs against inventory carrying (holding) costs to find the most cost-effective order quantity.

Question 2

What is the effect of increasing safety stock levels in an MRP system?

Accepted Answer

Increases net requirements and planned order quantities

Answer

Higher safety stock increases the projected on-hand target, which raises net requirements and therefore the planned order quantities generated by MRP.

Question 3

Which MRP output is used by purchasing to create purchase orders?

Accepted Answer

Planned order releases for purchased items

Answer

Planned order releases for purchased items are the MRP output that triggers the creation of purchase orders to external suppliers.

Question 4

A 'pegging' report in MRP is used to:

Accepted Answer

Trace a component's demand back to its parent requirement

Answer

Pegging links a lower-level component requirement back through the BOM to the specific parent orders or customer demands that caused it.

Question 5

Low-level coding in a BOM ensures that MRP:

Accepted Answer

Calculates requirements for a component after all its parents have been planned

Answer

Low-level coding assigns each part a code equal to the lowest level it appears, ensuring MRP nets all parent demands before planning that component.

(MRP) MRP Certified Agents Practice Test

(MRP) MRP Certified Agents Practice Test

MRP Material Requirements Planning Fundamentals 3