ProductionManagementChapter7

What is one main advantage of using an MRP system in industries with customizable product options?

• It minimizes the cost of raw materials
• It reduces the time needed to manufacture products from start to finish
• It allows companies to prepare major components in advance, completing products upon customer order
• It eliminates the need for inventory entirely

In which situation is an MRP system most helpful?

• When products are made only after customers order specific options
• When products are simple and made in large batches
• When products are sold directly from stock with no changes
• When there is no need to manage inventory levels

Which of the following is an example of dependent demand?

• Demand for finished cars in a dealership
• Demand for coffee in a café
• Demand for car tires based on car production
• Demand for bottled water at a grocery store

In which environment is MRP least effective?

• Assemble-to-order production
• Job shop production
• Complex product manufacturing
• High-volume, continuous production with no component customization

What is the purpose of managing discrete demand in MRP?

• To keep inventory levels constant at all times
• To prepare for demand that occurs at specific intervals, not continuously
• To eliminate the need for forecasting demand
• To reduce the cost of raw materials

What is the main objective of a Material Requirements Planning (MRP) system?

• To automate the entire manufacturing process
• To maintain high levels of inventory to avoid stockouts
• To ensure materials are available when needed while keeping inventory levels as low as possible
• To create new methods for sourcing raw materials

What made Material Requirements Planning (MRP) unique as an inventory system?

• It focused solely on tracking finished goods in the warehouse
• It recognized the need to handle raw materials, components, and finished goods differently
• It was only used for purchasing raw materials
• It replaced the need for any production scheduling

How do the product structure bring the benefit  in manufacturing ?

• To provide a cost estimate for the entire product
• To serve as a detailed breakdown of all components, materials, and sub-assemblies in a product
• To document the product's marketing and sales strategy
• To illustrate the product’s lifespan and durability

Which of the following best describes a benefit of using a Time-phased Bill in manufacturing?

• It reduces the need for quality checks at each production stage
• t helps ensure materials are available exactly when needed to meet production schedules
• It eliminates the need for inventory management
• It primarily focuses on reducing the overall cost of materials

What is the primary purpose of the Material Requirements Planning (MRP) process?

• To determine the financial viability of a project.
• To calculate the materials and components needed to fulfill product demand.
• To manage customer service requests.
• To monitor employee productivity.