OM Chapter 4 quiz

¡Supera tus tareas y exámenes ahora con Quizwiz!

3 major lot sizing techniques

-lot-for-lot -economics order quantity (EOQ) -periodic order quantity (POQ)

Zum-zum Inc., an outfit that produces birthday celebration gadgets, is trying to implement an MRP along with an order sizing method which minimizes costs. Setup cost is $200 for each order and holding cost is $2/period. If each period is 1 week, gross requirements are 270 units per 10 weeks, and there are 6 planned order releases for every 10 weeks, then the cost of the orders for an entire year is $____, using the lot-for-lot method. Assume that lot-for-lot is computed as though the usage will occur continually throughout the year. -A) 6240 -B) 3796 -C) 7596 -D) 2700 -E) 5200

A. 6240

Which of the following lot-sizing techniques results in the lowest holding costs? -A) lot-for-lot -B) EOQ -C) part-period balancing -D) Wagner-Whitin algorithm -E) the quantity discount model

A. Lot-for-lot

In MRP, system nervousness is caused by _____. -A) management's attempt to continually respond to minor changes in production requirements -B) the use of the lot-for-lot approach -C) management's marking part of the master production schedule as "not to be rescheduled" -D) the use of phantom bills of material -E) management's attempt to evaluate alternative plans before making a decision

A. management's attempt to continually respond to minor changes in production requirements

MRP II stands for: -A) material resource planning. -B) management requirements planning Version II. -C) management resource planning Version II. -D) material revenue planning. -E) material risk planning.

A. material resource planning.

"System nervousness" of the MRP schedule is best summarized as ____. -A) the reaction to a large number of minor changes that may introduce instability into the purchasing and production departments -B) the excessively short periods for production, say days instead of weeks -C) too many net requirements in the production phases of the MRP schedule -D) insufficient safety stock in the purchasing phases of the MRP schedule -E) infeasible lead times in lot-for-lot

A. the reaction to a large number of minor changes that may introduce instability into the purchasing and production departments

All of the following are disadvantages of ERP, except ____, which is an advantage. -A) They involve an ongoing process for implementation, which may never be completed -B) They have software that is off-the-shelf coding. -C) Expertise in ERP is limited, with staffing an ongoing problem. -D) They are so complex that many companies cannot adjust to them. -E) Implementation may require major changes in the company and its processes.

B. They have software that is off-the-shelf coding.

Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is __________ days. -A) 6 -B) 9 -C) 13 -D) 17 -E) cannot be determined

C. 13

Four A washers, Five B washers, Two C bolts, and a D bolt are required to make one Grill parts kit. If 100 grill part kits are needed then ____ more washers than bolts will be used. -A) 1200 -B) 500 -C) 600 -D) 800 -E) 400

C. 600

In a product structure diagram: -A) parents are found only at the top level of the diagram. -B) parents are found at every level in the diagram. -C) children are found at every level of the diagram except the top level. -D) all items in the diagrams are both parents and children. -E) all of the above.

C. children are found at every level of the diagram except the top level.

A tactic for load smoothing in MRP include any of the following, except ___. -A) send pieces to the second operation before the entire lot is completed on the first operation -B) send the lot to two different machines for the same operation -C) lot-for-lot technique -D) break up the order and run part of it ahead of schedule.

C. lot-for-lot technique

A master production schedule specifies _____. -A) the raw materials required to complete the product -B) what component is to be made, and when -C) what product is to be made, and when -D) the labor hours required for production -E) the financial resources required for production

C. what product is to be made, and when

Which system extends MRP II to tie in customers and suppliers? -A) MRP III -B) JIT -C) IRP -D) ERP -E) Enhanced MRP II

D. ERP

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120. As each A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As? -A) Week 1, 300 As -B) Week 1, 40 As -C) Week 5, 40 As -D) Week 4, 40 As -E) Week 4, 300 As

D. Week 4, 40 As

A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a(n) ____. -A) net requirements document -B) resource requirements profile -C) aggregate plan -D) master production schedule -E) bill of material document

D. master production schedule

Demand for a given item is said to be dependent if ____. -A) it originates from the external customer -B) there is a deep bill of material -C) the finished products are mostly services (rather than goods) -D) there is a clearly identifiable parent -E) the item has several children

D. there is a clearly identifiable parent

-expects a known constant demand and MRP systems often deal with unknown and variable demand -use when the demand is constant and setup costs are high

economic order quantity (EOQ)

-integrated database software systems to integrate all activities within a firm -Ex: Edwards, SAP, Baan, JD

enterprise resource planning (ERP)

T/F: MRP can be used for scheduling products with variable lead times.

false

-orders just what is required for production based on net requirements -may not always be feasible -if setup costs are high, it can be expensive -no inventory -use whenever economical -lowest holding cost

lot-for-lot technique

planning and scheduling technique used for batch production of assembled items

material requirements planning (MRP)

-orders quantity needed for a predetermined time period interval -POQ = EOQ / average demand per period -order quantity set to cover the interval -no extra inventory -not always optimal -good when setup costs are high

periodic order quantity (POQ)

T/F: While ERP may provide a strategic advantage over competitors, it is often so complex that many companies cannot adjust to it.

true


Conjuntos de estudio relacionados

Ethos, Logos and Pathos Assessment

View Set

SEAS 8414 LECTURE 1: What is Data Analysis? Why is it Important?

View Set

Legal Aspects of Real Estate Final Exam

View Set

Mejo 341 copyright and trademark

View Set

Astronomy Ch. 6-11 Exam 2 (Fullerton College, Liliana Barabas)

View Set

MastBio - Chapter 5 AppliedContent

View Set