Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps:
taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase
.
What is the key difference between the MRP and JIT inventory management approaches?
JIT is Just in Time
, while MRP refers to Manufacturing Resource Planning. MRP is a resource planning system that focuses on the future, and is time phased, while JIT does not provide for forward-thinking.
What is a key feature of materials requirement planning?
Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps:
taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase
.
Which is the best control to mitigate the threat of paying prices that are too high for goods ordered?
What is the best control to mitigate the threat of paying prices that are too high for goods ordered?
Use only approved suppliers and solicit competitive bids
. Use bar-code technology to eliminate data entry errors. Only pay invoices that are supported by the original voucher package.
What is the name of the traditional approach to inventory management?
The just-in-time (JIT) inventory
system is a management strategy that minimizes inventory and increases efficiency.
Where is MRP used?
You may use MRP concepts in a
variety of different production environments
. You may also use them for service providers, such as job shops. Examples of production environments include instances in which products are complex, products are only assembled to order, or demand items are discrete and dependent.
What is the key to MRP?
One of the main settings for the MRP planning run within SAP is the
Processing Key
. This setting is the main indicator for which the MRP planning run will execute.
Is MRP push or pull?
The Material Requirements Planning (MRP) mentioned above is a
push system
since there are no prior WIP limitations. Goods are produced under the master production schedule with no regard to the current status.
What are the three basic production planning strategies?
The main strategies used in production planning and control are
the chase strategy, level production, make-to-stock, and assemble to order
.
What does MRP stand for?
Material requirements planning
(MRP) is a computer-based inventory management system designed to improve productivity for businesses. Companies use material requirements-planning systems to estimate quantities of raw materials and schedule their deliveries.
What internal control procedure would be most cost effective in dealing with to the following expenditure cycle threats?
Which internal control procedure would be most cost-effective in dealing with the following expenditure cycle threats?
Count all deliveries and record counts on a receiving report.
What three documents are matched together in preparation for payment in an expenditure cycle?
Thus, the “three-way match” concept refers to matching three documents –
the invoice, the purchase order, and the receiving report
– to ensure that a payment should be made. The procedure is used to ensure that only authorized purchases are reimbursed, thereby preventing losses due to fraud and carelessness.
What is the best control procedure to prevent paying the same invoice twice?
What is the best control procedure to prevent paying the same invoice twice? a.
Segregate check preparation and check-signing function
.
Which of the following is not considered a form of inventory?
Which of the following is not considered a form of inventory?
back orders
. Which of the following is not an example of inventory carried to satisfy independent demand?
What is the final activity in the expenditure cycle?
Procurement cards provide one way to eliminate the need for accounts payable to process many such small invoices. A procurement card is a corporate credit card that employees can use only at designated suppliers to purchase specific kinds of items. The final activity is
paying suppliers
.
Which statement about holding costs also known as carrying costs are correct?
Holding costs can include the cost of insurance. Ordering and setup costs are treated the same. Which statement about holding costs, also known as carrying costs, are correct?
Carrying costs can be stated as a constant.
