With regards to the material master in the master data for the material planning process, both MRP and work scheduling data are relevant. Key data included in the MRP and work scheduling views of the material master are (4 correct answers)

Question 18 options:

	Lot size key
	Strategy Group
	Safety stock
	Procurement type
	Reorder date.
	MRP Type

In Material Planning process, the material master must indicate data regarding the lot size key. Which of the following are true with regards to lot size: (4 correct answers)

Question 19 options:

	MRP lot sizing is the optimal lot sizing to use.
	MPS lot sizing is not desired in most cases.
	Period lot-sizing procedures combine the requirements from multiple time periods such as days or weeks into one lot.
	Optimum lot-sizing procedures take into account the costs of ordering and storing materials using techniques such as the economic order quantity and economic production quantity calculations.
	Static lot-sizing specifies the fixed quantity based on either a predetermined value (fixed lot size) or the exact quantity required (lot-for-lot).
	A lot size is the quantity of material that is specified to be bought at a time.

The objective of material planning is to balance the demand for materials with the supply of materials so that an appropriate quantity of material is available when needed. Which of the following statements are FALSE regarding supply and demands with regards to material planning: (2 correct answers)

Question 20 options:

	Supply is driven by procurement and production. Materials are either purchased or produced.
	Reducing raw materials so they are not available to produce finished goods or fulfill customer orders is a good strategy. This reduces inventory costs due to storage, insurance and obsolescence.
	If raw materials are not available then the company cannot produce finished goods in a timely manner and consequently will not be able to fulfill a customer order this is a stock out which can result in lost sales.
	Buying or making too much material is a great strategy to avoid not fulfilling customer demands.
	If we buy or make too much material results in excess inventory which ties up cash and increases storage costs, insurance costs and risk of obsolescence.
	Demand for materials is driven by fulfillment and production.

In the Material Planning Process, material master must indicate in the MRP 1 view what MRP Type to use. Which of the following are true with regards to different MRP types there are? (3 correct answers)

Question 21 options:

	Consumption based planning calculates the requirements for material based on historical consumption.
	Consumption based planning take into account dependencies between different materials
	Master Production Scheduling (MPS) Similar to MRP but focuses exclusively on the requirements for the top-level items in the BOM.
	Materials Requirement Planning (MRP) calculates requirements for a material based on its dependence on other materials. The MRP technique is used to calculate and plan requirements for materials at all levels of the BOM. Planned Independent Requirements (PIRs) drive the requirements calculations for each successive level in the BOM the requirements for each level are dependent on the requirement for higher level materials.
	Master Production Scheduling (MPS) is a mandatory step in the planning process and is always followed by MRP.
	Companies use Master Production Scheduling (MPS) for the finished goods that are not criticial. Availability for these materials are not critical.

Please indicate which order the following steps in the Material Planning Process happen in:

Question 22 options:

123456789	The Material Planning Process is complete
123456789	Disaggregate operations / production plans at the product group into a plan for the materials contained in those groups.
123456789	Transfer PIRs (Planned Independent Requirements) for each period into demand management.
123456789	Create an operations / production plan at the product group level.
123456789	Create purchase requisitions, planned orders and dependent requirements.
123456789	Calculate net requirements of material using purchase requirements, purchase orders, goods receipt, sales orders, deliveries, goods issues, planned production orders, production orders, material reservations, and goods receipts through MRP.
123456789	Create revised PIRs (Planned Independent Requirements) for each material using SOP PIRs and fulfillment's actual requirements.
123456789	A need or desire to revise the organization's production plan.
123456789	Create a sales plan at the product group level.