A gross requirement of 80 units of component B is needed in week 7. On-hand inventory for B is 15 units. How is this demand reflected in the net requirements plan for B?
Explanation
This question tests the core calculation of a net requirements plan by subtracting available inventory from the total (gross) demand to find out how much is actually needed.
Other questions
What is the primary characteristic of dependent demand in inventory models?
Which of the following is NOT a required input for effective use of dependent inventory models like MRP?
What is a bill of material (BOM)?
In a product structure, items that are above any level are called what?
Based on the product structure for the 'Awesome' speaker kit, where one 'A' requires 2 'B's and 3 'C's, and each 'C' requires 2 'F's, how many units of 'F' are needed for an order of 50 'Awesome' speaker kits?
What is the primary purpose of using modular bills in an MRP system?
What is a key difference between a gross material requirements plan and a net material requirements plan?
In a net requirements plan for Product A, the gross requirement is 50 units in week 8. If there are 10 units of A on hand, what is the planned order receipt for A in week 8?
What is the term for frequent changes in an MRP system that can create havoc in purchasing and production departments?
What tool allows a segment of the master schedule to be designated as 'not to be rescheduled' to reduce MRP system nervousness?
Which lot-sizing technique generates an order for the exact quantity required to meet the plan in a given period?
A company has determined that for a certain component, the setup cost is $100 and the holding cost is $1 per unit per week. The net requirements for the next 10 weeks are: (W2) 30, (W3) 40, (W5) 10, (W6) 40, (W7) 30, (W9) 30, (W10) 55. What is the total cost for this 10-week period using the lot-for-lot technique?
What is the primary feature that distinguishes Material Requirements Planning II (MRP II) from the basic MRP?
In a closed-loop MRP system, what is the purpose of a load report?
Which tactic for smoothing the load in a work center involves sending pieces to the next operation before the entire lot is completed on the first operation?
What does DRP stand for in the context of supply chain management?
What is the primary objective of an Enterprise Resource Planning (ERP) system?
What is the function of low-level coding in a bill of material?
In the context of MRP, what is a planned order release?
What are phantom bills of material used for?
According to the text, what level of inventory record accuracy is considered an absolute necessity for an MRP system to work?
What is the primary drawback of the lot-for-lot (LFL) sizing technique?
What does the term 'buckets' refer to in a material requirements planning system?
In a Periodic Order Quantity (POQ) lot-sizing system, the POQ interval is 3 weeks. If net requirements for the next 5 weeks are 0, 30, 40, 0, 10, and a planned order release is scheduled for week 2, what will be the size of the order?
How does Distribution Resource Planning (DRP) logic relate to MRP logic?
Which of the following is NOT a typical component or module of a modern ERP system?
What does a time-phased product structure illustrate?
A planned order receipt for 65 units of component B is in week 5. The lead time for B is 2 weeks. When is the planned order release for this quantity?
What is the primary limitation of MRP systems regarding detailed scheduling?
In the context of the speaker kit examples, if annual usage for component B is 1,404 units, setup cost is $100, and annual holding cost is $52 per unit, what is the Economic Order Quantity (EOQ)?
What is the function of 'pegging' in an MRP system?
How can safety stock be incorporated into an MRP system?
An EOQ for a component is 73 units, and the average weekly usage is 27 units. What is the Periodic Order Quantity (POQ) interval?
What is a major advantage of the POQ lot-sizing technique compared to EOQ in a variable demand environment?
A key benefit of MRP mentioned in the text is reduced inventory levels. What are the other three benefits listed?
How can MRP systems be applied in a restaurant setting?
In what way is the term 'pull system' related to Distribution Resource Planning (DRP)?
According to the text, what is a major downside of customizing ERP software?
What are supply chain management systems in the grocery industry, which tie sales to buying, inventory, logistics, and production, known as?
The Master Production Schedule (MPS) is a statement of what is to be produced. It is NOT a:
In a bill of material, what is a planning bill or kit used for?
What is the result of using the Economic Order Quantity (EOQ) lot-sizing method in the 10-week speaker kit example with a setup cost of $100 and holding cost of $1 per week?
Which of the three lot-sizing techniques (Lot-for-Lot, EOQ, POQ) resulted in the lowest total cost in the speaker kit examples?
According to the description of a closed-loop MRP system, which tactic for smoothing workload involves sending a lot to two different machines for the same operation?
What is the top level in a Bill of Material (BOM) structure by convention?
In the Net Material Requirements Plan for the Awesome speaker kit (Example 3), how is the gross requirement of 130 units for component E in week 5 determined?
Which term describes a system that allows inventory data to be augmented by other resource variables, such as labor and machine hours?
In Figure 14.5, which shows several schedules contributing to a gross requirements plan for component B, what causes the gross requirement of 40 units in week 5?
Based on the product structure from Example 1, if there is an on-hand inventory of 100 units of F, what is the new net requirement for D to produce 50 units of A?