1. (T/F) MRP is mostly applied on items that have dependent demand.
2. (T/F) MRP creates advantage with reducing inventory position and increasing response level to market changes.
3. (T/F) While applying MRP, demand of the final product is used in order to estimate the quantity requirement of the dependent item which exists in the final product.
4. (T/F) Stock on hand position is not considered while calculating the gross material requirements.
5. (T/F) In order to apply dependent inventory models; lead times, available stock on hand position, and outstanding orders are considered to be critical for the the operations managers.
6. (T/F) Customer preferences are considered while deciding which products have dependent demand.
7. (T/F) In MRP calculations, safety stock necessities are included by the increase of inventory requirements.
8. (T/F) If operations managers want to minimize the holding costs, they would prefer the lot-for-lot techniques.
9. (T/F) In POQ lot sizing calculations, production orders are placed regularly with predetermined time intervals.
10. Which of the following can NOT be considered as a benefit of MRP?

1. Decreased stock on hand levels
2. Improved customer satisfaction
3. Improved quality
4. Better management of resource (facility & labor) utilization
5. Fast response to market changes.