Materials Requirement Planning

Question 1

Demand for components derived from the plan for production of finished goods.

Answer 1

dependent demand

Question 2

The activity that determines the plans for purchasing and production of dependent-demand components.

Answer 2

material requirements planning (MRP)

Question 3

The anticipated build schedule stating which end items are to be produced, when, and in what quantities for the next 12 weeks or so.

Answer 3

master production schedule (MPS)

Question 4

The sum of the lead times that sequential phases of a process require, from ordering components to completion of final assembly.

Answer 4

cumulative lead time

Question 5

A listing of all of the components (raw materials, parts, and subassemblies) needed to produce one unit of a product.

Answer 5

bill of materials (BOM)

Question 6

A hierarchical diagram of the components needed to assemble a product.

Answer 6

product structure tree

Question 7

Also called a pseudo bill or a kit, is a combination of several BOMs.

Answer 7

planning bill

Question 8

A type of planning bill that is arranged in product modules or options.

Answer 8

modular bill

Question 9

Also called a transient bill, is for an item that is usually not kept in inventory.

Answer 9

phantom bill

Question 10

The demand for an item during a time period.

Answer 10

gross requirement

Question 11

Open order scheduled to arrive from a vendor or shop floor.

Answer 11

scheduled receipt

Question 12

Expected amount of inventory that will be on hand at the beginning of a time period.

Answer 12

projected on-hand

Question 13

The actual amount needed in a time period.

Answer 13

net requirement

Question 14

Quantity planned to be received in the beginning of a period.

Answer 14

planned-order receipt

Question 15

Quantity planned to be released (i.e., ordered) in the beginning of a period; that is, planned-order receipt offset by the lead time.

Answer 15

planned-order release

Question 16

Identifying the immediate parent items that have generated a given set of requirements for an item.

Answer 16

pegging

Question 17

Recomputes all the MRP quantities periodically.

Answer 17

regenerative MRP

Question 18

Immediately updates only MRP tables affected by a change.

Answer 18

net-change MRP

Question 19

Exploding an end item’s BOM to determine the quantities of the components that must have been used to make the item.

Answer 19

backflushing

Question 20

Authorization for the execution of week 1 planned-order releases.

Answer 20

immediate order releases

Question 21

Evaluation of system operation, including deviations from plans and cost information.

Answer 21

performance-control reports

Question 22

Data useful for forecasting future component requirements.

Answer 22

demand history reports

Question 23

Choosing a lot size for a purchase or production order.

Answer 23

lot sizing

Question 24

The process of determining and adjusting detailed capacity requirements of MRP.

Answer 24

capacity requirements planning

Question 25

Department or work centre reports that compare known and expected future capacity requirements with capacity availability.

Answer 25

load reports

Question 26

Expanded system for production planning and scheduling, involving sales and operations planning, MPS, MRP, CRP, and detailed scheduling.

Answer 26

manufacturing resource planning (MRP II)

Question 27

Also known as enterprise software, it is used to manage and coordinate all the resources, information, and functions of an organization from a shared database.

Answer 27

enterprise resource planning (ERP)