Master Planning of Resources (MPR)

Free Exam Practice Questions

1) Which of the following manufacturing environments would have an order decoupling point that
is closest to the customer?

Make-to-order

Make-to-stock

Assemble-to-order

Engineer-to-order
1) Which of the following manufacturing environments would have an order decoupling point that
is closest to the customer?

Make-to-order

Make-to-stock

Assemble-to-order

Engineer-to-order
 Explanation

The customer order decoupling point is the point at which demand changes from
independent to dependent. In the make-to-stock environment, the order decoupling point
would be the finished goods inventory which represents the closest point to the end
customer.
2) Which of the following is not crucial to physical distribution planning?

Inventory resupply shipments

Customer delivery promises

Interplant shipments

Inventory turnover ratio

2) Which of the following is not crucial to physical distribution planning?

Inventory resupply shipments

Customer delivery promises

Interplant shipments

Inventory turnover ratio

 Explanation

Physical distribution activities are planned based on the information developed in demand
management activities. This includes customer delivery promises, interplant shipments,
inventory resupply as well as other information needed to plan the movement of goods to
the customer.
3) An items low-level code represents which of the following?

The frequency of inventory auditing for the item

The planning detail in which material requirements of an item are planned

The importance of the item in an assembly

The lowest level on which the item is used in an assembly

3) An items low-level code represents which of the following?

The frequency of inventory auditing for the item

The planning detail in which material requirements of an item are planned

The importance of the item in an assembly

The lowest level on which the item is used in an assembly

 Explanation

The low-level code represents the lowest level of usage of an item within all product
structure and is used to calculate gross requirements.
4) Which of the following is not true regarding scheduled receipts and planned order releases?

The scheduled receipt represents a commitment

Scheduled receipt explode to gross requirements for components

The planned order release represents a plan

Planned orders are easier to change than scheduled receipts

4) Which of the following is not true regarding scheduled receipts and planned order releases?

The scheduled receipt represents a commitment

Scheduled receipt explode to gross requirements for components

The planned order release represents a plan

Planned orders are easier to change than scheduled receipts

 Explanation

The major difference between scheduled receipt and planned order is that the first
represents a commitment while the latter only represents a plan. Scheduled receipts do
therefore not explode to gross requirements for components while planned orders do.
5) Which of the following is not a typical task of an MRP planner?

Elimination of root causes of errors

Order releases

Production input/output control

Rescheduling of due dates

5) Which of the following is not a typical task of an MRP planner?

Elimination of root causes of errors

Order releases

Production input/output control

Rescheduling of due dates

 Explanation

Production input/output control is not a typical task on an MRP planner. The planned
inputs and outputs of a work center are commonly established by capacity requirements
planning and maintained by manufacturing management.
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