121. Buying according to the requirements is called
Seasonal Buying
Hand to mouth buying
Scheduled Buying
Tender Buying
Correct answer: (B) Hand to mouth buying
122. Raw Materials and WIP can be classified under
Indirect Material
Direct Material
Finished Material
Standard Parts
Correct answer: (B) Direct Material
123. ___________________ establishes the overall production, workforce, and inventory levels.
Production activity control
Distribution requirements planning
Master production schedule
Sale and operations planning
Correct answer: (D) Sale and operations planning
124. The master production schedule requires all of the following input except
Projected inventory levels
Production quantities
Forecasted demand
All of the above are inputs into MSP.
Correct answer: (D) All of the above are inputs into MSP.
125. In a distribution requirements planning environment, forecasted demand at the plant level is equal to __________________ in the distribution center level.
Scheduled receipts
Planned receipts
Planned orders
None of the above
Correct answer: (C) Planned orders
126. The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is
The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
The gross MRP doesn't take taxes into account, whereas the net MRP includes the tax considerations.
The gross MRP may not be computerized, but the net MRP must be computerized.
The gross MRP includes consideration of the inventory on hand, whereas the net MRP does not.
Correct answer: (A) The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
127. An MRP system that provides feedback to the capacity plan, master production schedule, and production plans is called
System nervousness.
Closed-loop mrp.
Lot-sizing.
Load report.
Correct answer: (B) Closed-loop mrp.
128. ___________________ determines when specific products will be produced, when specific customer orders will be fulfilled, and what capabilities remain available to satisfy unexpected demand.
Sale and operations planning
Material requirements planning
Distribution requirements planning
Master production schedule
Correct answer: (D) Master production schedule
129. __________________ is the amount of new orders necessary to support production of the required output in the next higher level in the bill of materials.
Scheduled receipts
Available to promise
Projected ending inventory
Planning horizon
Correct answer: (A) Scheduled receipts
130. __________________ allows a segment of the master schedule to be designated as "not to be rescheduled."