Unit 10 Material Requirements Planning

Question 1

Enterprise resource planning (ERP)

Answer 1

A computer system
that integrates application programs in accounting, sales,
manufacturing, and the other functions in a firm. This
integration is accomplished through a database shared
by all the application programs

Question 2

Material requirements planning (MRP)

Answer 2

The logic for

determining the number of parts, components, and materials needed to produce a product

Question 3

Master production schedule (MPS)

Answer 3

A time-phased plan
specifying how many of each end item the firm plans to
build and when

Question 4

Available to promise

Answer 4

A feature of MRP systems that
identifies the difference between the number of units
currently included in the master schedule and the actual
(firm) customer orders

Question 5

The MRP system uses three sources of information:

Answer 5

1. Demand comes from the master schedule.
2. The bill-of-materials identifies exactly what is
   needed to make each end item.
3. The current inventory status of the items managed by
   the system (units currently on-hand, expected receipts
   in the future, and how long it takes to replenish an
   item).

Question 6

Bill-of-Materials (BOM)

Answer 6

Bill-of-Materials (BOM) The complete product description, listing the materials, parts, and components; the
quantity of each item; and also the sequence in which
the product is created

Question 7

Net change systems

Answer 7

Net change systems MRP systems that calculate the

impact of a change in the MRP data (the inventory status, BOM, or master schedule) immediately

Question 8

Explosion

Answer 8

The logic used by MRP is often referred to as explosion calculations because the requirements shown in
the MPS are “exploded” into detailed schedules for
each item managed by the system