Ch. 14
Which of the following is FALSE concerning enterprise resource planning (ERP)? A) It is inexpensive to implement. B) It shares common data and practices across the enterprise. C) It provides and accesses information in a real-time environment. D) It attempts to automate and integrate the majority of business processes. E) ERP software promises reduced transaction costs.
A) It is inexpensive to implement.
Which of the following is NOT a key benefit of MRP? A) increased quality B) better response to customer orders C) reduced inventory levels D) faster response to market changes E) improved utilization of facilities and labor
A) increased quality
Which of the following statements regarding MRP in services is TRUE? A) MRP can be used in services, but only in those that offer very limited customization. B) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling. C) MRP is for manufacturing only, and it is not applicable to services. D) MRP only works in services for demand that is independent. E) None of the above is true.
B) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.
In MRP, system nervousness is caused by: A) management's attempt to evaluate alternative plans before making a decision. B) management's attempt to continually respond to minor changes in production requirements. C) the use of the lot-for-lot approach. D) the use of phantom bills of material. E) management's marking part of the master production schedule as "not to be rescheduled".
B) management's attempt to continually respond to minor changes in production requirements.
Enterprise resource planning (ERP): A) seldom requires software upgrade or enhancement. B) does not integrate well with functional areas other than operations. C) automates and integrates the majority of business processes. D) is inexpensive to implement. E) all of the above
C) automates and integrates the majority of business processes.
What is one of the tools that is particularly useful in reducing system nervousness in an MRP system? A) lot sizing B) time phasing C) time fences D) closed loop system E) modular bills
C) time fences
Effective use of MRP and other dependent demand models does not require which of the following? A) bill of materials B) lead times C) master production schedule D) cost of individual components E) inventory availability
D) cost of individual components
Consider the following product structure. If the demand for product A is 50 units, how many units of component E will be needed? A) 200 B) 100 C) 250 D) 300 E) 4
D. 300
Which of the following lot-sizing techniques results in the lowest holding costs? A) Wagner-Whitin algorithm B) POQ C) EOQ D) the quantity discount model E) lot-for-lot
E) lot-for-lot
For the lot-sizing technique known as lot-for-lot to be appropriate: A) the independent demand rate should be very stable. B) future demand should be known for several weeks. C) item unit cost should be relatively small. D) annual volume should be rather low. E) setup cost should be relatively small.
E) setup cost should be relatively small.
A dependent demand item is so called because its demand is dependent on customer preferences. True of False
False
Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software. True False
True
MRP is generally practiced on items with dependent demand. True or False
True
The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used. True or False
True
The time-phased product structure, unlike the bill of material, adds the concept of lead times. True False
True
