ISDS 3115 CH 14

By​ convention, what is the top level in a product​ structure? A. level 0 B. level 1 C. level T D. level 10 E. level 100

A

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 attempt to evaluate alternative plans before making a decision. D. the use of phantom bills of material. E. management's marking part of the master production schedule as​ "not to be​ rescheduled".

A

The minimum record accuracy required for successful MRP is approximately which of the​ following? A. ​99% B. ​90% C. ​97% D. lower than​ 90% E. ​95%

A

The operations manager has two important tools available to deal with MRP system nervousness. Those tools are A. time fences and pegging. B. pseudo bills and kits. C. net and gross requirements. D. buckets with back flush.

A

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A. ERP B. BOM C. CIM D. MRP

A

What is a​ lot-sizing technique that orders the quantity needed during a predetermined time between​ orders? A. POQ B. ​Wagner-Whitin C. EOQ D. part period balancing

A

What provides feedback to the capacity​ plan, master production​ schedule, and production plan so planning can be kept valid at all​ times? A. ​closed-loop MRP system B. lot sizing C. system nervousness D. MRP II

A

Which of the following is NOT true about MRP​ limitations? A. MRP does not tell you that a job needs to be completed on a certain week or day. B. MRP is considered an infinite scheduling technique. C. MRP is an excellent tool for​ product-focused and repetitive​ facilities, but it has limitations in process​ (make-to-order) environments. D. MRP does not do detailed scheduling.

A

Which of the following pieces of information is NOT contained in a bill of​ material? A. lead times B. physical dimensions C. quantities of components D. raw materials to be used

A

Which of the following statements is NOT​ true? A. For any​ product, some components of that product are independent demand items. B. Demand for items is dependent when the relationship between the items can be determined. C. Less inventory frees up capital and floor space for other uses. D. For any product for which a schedule can be​ established, dependent techniques should be used.

A

A grill assembly takes 20 washers. Instead of listing these washers​ separately, they are grouped into a single kit for production. How is the bill of material for the washers​ classified? A. modular bill B. planning bill C. phantom bill D. ​low-level bill E. component bill

B

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A. EIS B. ERP C. MRP D. SCM

B

Which of the following allows a segment of the master schedule to be designated as​ "not to be​ rescheduled?" A. pegging B. time fence C. freeze point D. system nervousness

B

Which of the following is NOT one of the benefits in​ MRP? A. improved utilization of facilities and labor B. increased inventory levels C. better response to customer orders as the result of improved adherence to schedules D. faster response to market changes

B

Which of the following statements is NOT true about the​ EOQ? A. The EOQ can be a reasonable​ lot-sizing technique when demand is relatively constant and independent. B. The EOQ is preferable when dependent demand exists. C. The EOQ can be used as a​ lot-sizing technique for MRP systems. D. The EOQ is a statistical technique using​ averages, whereas the MRP procedure assumes known demand reflected in a master production schedule.

B

Which of the following​ lot-sizing techniques results in the lowest holding​ costs? A. ​Wagner-Whitin algorithm B. ​lot-for-lot C. the quantity discount model D. POQ E. EOQ

B

Enterprise resource planning​ (ERP): A. seldom requires software upgrade or enhancement. B. is inexpensive to implement. C. automates and integrates the majority of business processes. D. does not integrate well with functional areas other than operations. E. all of the above

C

What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular​ date? A. lead time B. net requirements plan C. gross material requirements plan D. master production schedule

C

What is a​ time-phased stock-replenishment plan for all levels of the supply​ chain? A. BOM B. MRP II C. DRP D. MRP

C

What is the​ lot-sizing technique that generates exactly what was required to meet the​ plan? A. ​Wagner-Whitin B. economic order quantity C. ​lot-for-lot D. periodic order quantity

C

Which of the following statements about DRP is NOT​ true? A. DRP procedures and logic are analogous to MRP. B. DRP stands for​ "distribution resource​ planning." C. DRP pushes inventory through the system. D. Lead times are considered in DRP.

C

Which of the following statements is NOT true about​ DRP? A. Effective use of DRP requires an integrated information system to rapidly convey planned order releases from one level to the next. B. The goal of a DRP system is small and frequent replenishment within the bounds of economical ordering and shipping. C. The DRP procedure starts with the forecast at the supplier level. D. When dependent techniques are used in the supply​ chain, they are called distribution resource planning​ (DRP).

C

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. C. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. D. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. E. All of the above are true.

C

Which of the following tools means tracing upward in the BOM from the component to the parent​ item? A. bucketing B. system nervousness C. pegging D. time fencing

C

A bill of materials for a menu item in a restaurant is also called a A. food bill. B. recipe. C. bill of ingredients. D. product specification.

D

Supply chain management systems in the grocery industry that tie sales to​ buying, to​ inventory, to​ logistics, and to production are called A. grocery resource planning. B. enterprise resource planning. C. distribution resource planning. D. efficient consumer response.

D

The gross material requirements plan combines A. the net requirements plan and the aggregate plan. B. the net requirements plan and the​ time-phased schedule. C. a master production schedule and the net requirements plan. D. a master production schedule and the​ time-phased schedule.

D

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A. master production schedule B. engineering change notice C. purchase order D. ​bill-of-material

D

What is a report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected​ orders? A. MRP II report B. pegging report C. ​closed-loop report D. load report

D

What is one of the tools that is particularly useful in reducing system nervousness in an MRP​ system? A. modular bills B. time phasing C. closed loop system D. time fences E. lot sizing

D

What is the act of breaking up an order and running part of it ahead of​ schedule? A. pegging B. operations splitting C. overlapping D. lot splitting

D

What sends a lot to two different machines for the same​ operation? A. overlapping B. pegging C. lot splitting D. operations splitting

D

Which of the following statements is NOT true about​ MRP? A. MRP provides a clean structure for dependent demand. B. MRP uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material requirements. C. MRP has evolved as the basis for Enterprise Resource Planning. D. MRP is an independent demand technique used in a production environment.

D

Which of the following statements is NOT true regarding​ ERP? A. ERP usually provides financial and human resource management information. B. ERP allows companies share a common database and business practices throughout the enterprise. C. The objective of an ERP system is to coordinate a​ firm's whole business. D. ERP promises​ slow, but​ accurate, information.

D

Which of the following​ lot-sizing techniques is likely to prove the most complex to​ use? A. ​lot-for-lot B. periodic order quantity​ (POQ) C. economic order quantity​ (EOQ) D. Wagner-Whitin

D

​Low-level coding means​ that: A. the​ lowest-paid staff member in the production department performs the coding. B. the code being used is the code for the lowest level in the BOM structure. C. a final item has only a few levels in the BOM structure. D. a component item is coded at the lowest level at which it appears in the BOM structure. E. the top level of the BOM is below level zero and that BOMs are not organized around the finished product.

D

The​ supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response​ (ECR) systems.

TRUE

Which of the following is an advantage of​ ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It creates commonality of databases. D. It is simple enough that companies have an easy time adjusting to it.

c

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. C. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. D. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. E.All of the above are true.

c