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True/False: Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning
True/False: Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning
TRUE/FALSE
M4.1
M4.2
M4.3
A manufacturer of garden tillers would be very much interested in managing its dependent
inventory with a material requirements planning system.
ANSWER: TRUE
M4.4
In the material structure tree of material requirements planning, some items may be both parents
and components.
ANSWER: TRUE
M4.5
An inventory item in a material structure tree is either a parent or a component, but could never
be both a parent and component.
ANSWER: FALSE
M4.6
A net material requirements plan is used to include more than one products inventory
information.
ANSWER: TRUE
M4.7
M4.8
M4.9
M4.10
As the Kanban inventory system can be composed of only two containers, there need to be few, if
any, rules regarding the container usage.
ANSWER: FALSE
M4.11 One advantage of the Kanban process is the same Kanban card can be used for two or more
different inventory items.
ANSWER: FALSE
M4.12 In developing the overall material requirements plan, we develop net material requirements plans
for each item, and integrate these to get the overall gross materials requirements plan.
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
ANSWER: FALSE
M4.13
M4.14
The gross requirements plan includes on-hand inventory and planned order receipts.
ANSWER: FALSE
M4.15
The gross material requirements plan acts as an overall gross production schedule.
ANSWER: TRUE
M4.16
Unfortunately, MRP cannot handle the problem of having two or more end products contain the
same component.
ANSWER: FALSE
M4.17
The Kanban approach requires that a specified number of items be stored in each inventory
container.
ANSWER: TRUE
M4.18
One way to discover production bottlenecks is to remove Kanban containers and their P-Kanban
from the Kanban system in order to starve the production line.
ANSWER: TRUE
M4.19
M4.20
The net materials requirements plan contains such information as items on hand, order receipt
date, order release date, etc.
ANSWER: TRUE
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
*M4.21 A manufacturer of custom furniture would be very much interested in managing its inventory
with a material requirements planning system.
ANSWER: FALSE
*M4.22 When we speak of dependent inventory, we mean the quantity of inventory which is directly
dependent on current orders.
ANSWER: FALSE
*M4.23 The purpose of a material structure tree is to illustrate how the various pieces of inventory fit
together.
ANSWER: FALSE
*M4.24 From the material structure tree we are able to calculate the numbers of each inventory item
required to make a final product.
ANSWER: TRUE
*M4.25 The gross requirements plan provides more information than the net requirements plan.
ANSWER: FALSE
*M4.26 In order to develop a net requirements plan, we must know the lead time for the item.
ANSWER: TRUE
*M4.27 In order to develop a gross requirements plan, we need not know the lead time for the item.
ANSWER: FALSE
*M4.28 A typical Kanban system makes use of a container holding a set number of parts.
ANSWER: TRUE
*M4.29 In a typical Kanban system, no Kanban container will be filled unless it has a Kanban card
accompanying it.
ANSWER: TRUE
*M4.30 ERP systems are notoriously easy to implement.
ANSWER: FALSE
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
MULTIPLE CHOICE
M4.31
an appliance store
postage stamp sales
personal computer manufacturer
grocery store
none of the above
ANSWER: c
M4.32
ANSWER: d
M4.33
ANSWER: a
M4.34
The material structure tree in a material requirements plan shows the relationship between
(a)
(b)
(c)
(d)
(e)
ANSWER: b
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
M4.35
In material requirements planning, a net material requirements plan includes all the following,
except
(a)
(b)
(c)
(d)
(e)
gross requirements.
on-hand inventory.
planned-order receipts.
a transportation algorithm.
planned-order releases for each item.
ANSWER: d
M4.36
ANSWER: c
M4.37
A net material requirements plan compared to a gross material requirements plan includes
(a)
(b)
(c)
(d)
(e)
on-hand inventory.
inventory shortages.
inventory overages.
planned obsolescence.
none of the above
ANSWER: a
The information in Table M4-1 is to be used with questions M4.38M4.41.
Table M4-1
Week
Item X
1
Gross
60
On-Hand
80
Net
0
Order Receipt 0
Order Release 0
Week
2
10
20
0
0
10
Week
3
0
10
0
0
40
83
Week
4
20
10
10
10
Week
5
40
0
40
40
Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
M4.38
5
4
3
2
1
ANSWER: d
M4.39
0.
10.
20.
40.
none of the above
ANSWER: a
M4.40
is 0.
has not been fully utilized.
is held for safety stock purposes.
exceeded Week 1 demand.
none of the above
ANSWER: d
M4.41
ANSWER: e
M4.42
inventory.
control.
container.
card.
none of the above
ANSWER: d
M4.43
The C-Kanban is
(a) sitting in the production area ready for use.
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
(b) continuously moving (or conveying) inventory to the appropriate user station.
(c) utilized primarily in the user area.
(d) none of the above
ANSWER: c
M4.44
The P-Kanban is
(a)
(b)
(c)
(d)
ANSWER: a
M4.45
ANSWER: c
M4.46
Product A is a parent to components B and C. It takes five Bs and three Cs to produce A. How
many As can be produced with 400 Bs on hand?
(a)
(b)
(c)
(d)
(e)
80
50
30
10
none of the above
ANSWER: a
M4.47
Product A is a parent to components B and C. It takes five Bs and three Cs to produce A. If you
have 500 Bs and 250 Cs on-hand, how many As may be produced using only the on-hand
inventory?
(a)
(b)
(c)
(d)
(e)
80
50
30
10
none of the above
ANSWER: e
The information in Table M4-2 is to be used with questions M4.48M4.60.
Table M4-2
A
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
E
M4.48
A.
B, C, D.
D.
C.
none of the above
ANSWER: C
M4.49
0
100
200
400
800
ANSWER: b
M4.50
0
100
200
400
800
ANSWER: c
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
M4.51
0
100
200
400
800
ANSWER: c
M4.52
0
100
200
400
800
ANSWER: b
M4.53
0
100
200
400
800
ANSWER: e
M4.54
0
100
200
400
800
ANSWER: c
M4.55
0
100
200
400
800
ANSWER: c
M4.56
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
(b)
(c)
(d)
(e)
100
200
600
none of the above
ANSWER: e
M4.57
If we have 500 units of F in stock, how many As can be produced from this on-hand inventory?
(a)
(b)
(c)
(d)
(e)
52
500
62
72
none of the above
ANSWER: c
M4.58
If we have 600 units of I in stock, how many As can be produced from this on-hand inventory?
(a)
(b)
(c)
(d)
(e)
100
600
200
150
none of the above
ANSWER: d
M4.59
ANSWER: a
M4.60
If we change the requirement for C to three units of C for each unit of A, how many units of F
will be required for 100 units of A?
(a)
(b)
(c)
(d)
(e)
800
1200
1000
400
none of the above
ANSWER: b
*M4.61 If product A has a demand of 65 units in week 7, has a three-week lead time, and has 35 units onhand, determine the order releases for weeks 3 and 4.
(a) week 3 = 0, week 4 = 35
(b) week 3 = 35, week 4 = 0
(c) week 3 = 20, week 4 = 15
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
80
75
90
100
none of the above
ANSWER: b
*M4.63 Product A is a parent to components B, and C, and C is a parent to D. It takes three Bs and two
Cs to produce one unit of A, and it takes 4 units of D to produce one unit of C. If we want to
produce 100 units of A, how many units of D will this require?
(a)
(b)
(c)
(d)
(e)
1000
400
750
800
none of the above.
ANSWER: d
*M4.64 Product A is a parent to components B, and C, and C is a parent to D. It takes three Bs and two
Cs to produce one unit of A, and it takes 4 units of D to produce one unit of C. If we have 600
units of B, 200 units of C, and 200 units of D in stock, how many units can we produce?
(a)
(b)
(c)
(d)
(e)
200
115
150
125
none of the above
ANSWER: d
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
Table M4-3
A
B(2)
E(3)
F(3)
H(2)
J(2)
*M4.65 Given the material structure in Table M4-3, if you wish to produce 150 units of A, how many
units of K will you need?
(a)
(b)
(c)
(d)
(e)
700
800
900
150
none of the above
ANSWER: c
*M4.66 Given the material structure in Table M4-3, if you wish to produce 150 units of A, how many
units of H will you need?
(a)
(b)
(c)
(d)
(e)
600
700
800
950
none of the above
ANSWER: a
*M4.67 Given the material structure in Table M4-3, assume that we have the following on-hand
inventory:
Item
B
C
D
E
F
G
H
I
J
K
How many units of A can we produce?
(a) 110
90
On-Hand
150
200
50
125
210
100
160
50
120
240
Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
(b)
(c)
(d)
(e)
112
47
25
none of the above
ANSWER: d
*M4.68 Given the material structure in Table M4-3, how many units of G will we need to produce 200
units of C?
(a)
(b)
(c)
(d)
(e)
800
700
600
500
none of the above
ANSWER: a
*M4.69 Given the material structure in Table M4-3, how many units of H will be needed to produce 10
units of D?
(a)
(b)
(c)
(d)
(e)
20
40
5
10
none of the above
ANSWER: e
*M4.70 Given the material structure in Table M4-3, how many units of E can be made if we have 300
units of J?
(a)
(b)
(c)
(d)
(e)
150
300
100
200
none of the above
ANSWER: a
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
PROBLEMS
M4.71
If product A is the parent to items D and G, and G is the parent to L, M, and T, draw the material
structure tree.
ANSWER:
A
D
G
L
M4.72
If product B has a demand of 40 units in week 4, has a two-week lead time, and has 20 units onhand, determine the order releases for weeks 1 and 2.
ANSWER: order release week 1 = 0, order release week 2 = 20
M4.73
Item D is a component of parent item C. Item D has a one-week lead time. On-hand inventory of
D is 0. The order release for C is 0, 10, 30 in weeks 1, 2, 3. Determine the order release for D in
weeks 1, 2.
ANSWER: order release in week 1=10, order release in week 2 = 30
M4.74
Item F is a component of parent item E. Item F has a one-week lead time. On-hand inventory of
F is 20. The order release for E is 0, 10, 30 in weeks 1, 2. Determine the order release for F in
weeks 1, 2.
ANSWER: order release in week 1= 0, order release in week 2 = 20
M4.75
If one unit of item A requires one unit of B, three units of C, and one unit of D; item B requires
one unit of F; item C requires one unit of G; and item D requires one unit of H and two units of I,
draw the material structure tree.
ANSWER:
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
ANSWER: planning, the ordering, scheduling, and receiving times of inventory for production on
a low cost, timely basis
M4.77
M4.78
M4.79
M4.80
M4.81
M4.82
1.
2.
3.
4.
5.
6.
M4.83
Explain, briefly, the difference between a gross material requirements plan and a net material
requirements plan.
ANSWER: The net materials plan gives the details required to implement the gross materials
requirements plan.
M4.84
M4.85
In a simple inventory system, the two major questions are ___________, and ___________.
ANSWER: How much to order? When to order?
M4.86
In addition to being a simple, easy-to-implement system, the Kanban system can also be very
effective in ___________ and ___________.
ANSWER: controlling inventory costs, uncovering production bottlenecks
M4.87
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Material Requirements Planning, Just-in-Time Inventory, and Enterprise Resource Planning l CD-ROM MODULE 4
ANSWER: JIT is an overall inventory management plan, MRP is primarily a scheduling and
structuring system to determine when to place orders.
M4.88
M4.89
The MRP structure tree indicates the _____ and _____ of the ________ that compose the parent.
ANSWER: identity, quantity, components
94