ISDS 3115-Final review DSMs
The EOQ lot size quantity would be ___________.
200
Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacturer of Y is 1 week. The lead time for procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.
8
200
A company wishes to determine the EOQ for an item that has an annual demand of 2,000 units, a cost per order of $75, and annual carrying cost of 7.50 per unit. What is the EOQ?
a stockout is possible.
A disadvantage of the fixed-period inventory system is that
400
A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of 1,000 units, an annual carrying cost of $10 per unit, and a setup cost of $400. They operate 50 weeks per year, and can produce 40 units per week. What is the best batch size for this item?
Which of the following best describes a gross material requirements plan?
A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start
41
A specific product has expected demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides a 95% service level?
93
A store wants to ensure a shelf full of marshmallow peeps as the holiday season approaches. Daily demand for peeps is normally distributed with a mean of 25 and a standard deviation of 5. Lead time is 3 days and the store intends a 98% service level. What is the appropriate reorder point?
a perpetual inventory system
A system that keeps track of each withdrawal or addition to inventory continuously is __________.
a fixed-period system.
A system that triggers ordering on a uniform time basis is called
annual dollar volume.
ABC analysis generally divides on-hand inventory into three classes based upon
Capacity planning in closed-loop MRP does not do which of the following?
Adds in additional capacity
14 is the reorder point, and 100 is the order quantity.
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is true?
Material requirements planning (MRP) does not consider __________.
Capacity
Effective use of MRP and other dependent demand models does not require which of the following?
Cost of individual components
is a process by which inventory records are verified for accuracy
Cycle counting __________.
safety stock
Extra units that are held in inventory to reduce stockouts are called __________.
Safety stock inventory
Generally, inventory types are divided into four main categories. Which of the following is not one of the four main categories of inventory?
adding safety stock
If demand is not uniform and constant, the stockout risks can be controlled by __________.
increase the cost of the inventory policy
In the probabilistic model, increasing the service level will __________.
more in supplier development for A items.
Inventory management policies based on ABC analysis might include investing
increasing stockroom accessibility
Inventory record accuracy would be decreased by __________.
Which of the following statements regarding the gross material requirements plan is false?
It includes inventory on hand
Which of the following is false concerning enterprise resource planning?
It is inexpensive to implement.
What lot-sizing technique is generally preferred when inventory holding costs are extremely high?
L4L
Which of the following lot-sizing techniques results in the lowest holding costs?
L4L
MRP II is accurately described as:
MRP augmented by other resource variables
The __________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
Master production schedule
A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors, their bills of material are classified as:
Modular
Firms making many different final products use __________ to facilitate production scheduling.
Modular bill
total inventory based costs
Most inventory models attempt to minimize __________.
to provide a hedge against inflation
One use of inventory is __________.
Linking a part requirement with a parent component that caused the requirement is referred to as:
Pegging
Which of the following is not a key benefit of MRP?
Quality increases
All of the following are advantages of enterprise resource planning except it __________.
Requires additional training
Which of the following statements regarding MRP in services is true?
Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
choosing the level of safety stock that assures a given service level.
The appropriate level of safety stock is typically determined by
the production order quantity model does not require the assumption of instantaneous delivery.
The difference between the basic Economic Order Quantity (EOQ) model and the production order quantity model is that
to minimize the sum of setup cost and holding cost.
The primary purpose of the basic economic order quantity model shown below is
is appropriate when units are produced and sold simultaneously.
The production order quantity model
when to place an order and how many of an item to order.
The two most important inventory-based questions answered by the typical inventory model are
Which of the following is a step towards integrating MRP and finite capacity?
Using smaller buckets
Safety stock
Which of the following should be higher in P systems than Q systems?
The item has a constant purchase price.
Which of these conditions is not necessary for the economic order quantity model to be valid?
Enterprise Resource Planning __________.
automates and integrates the majority of business processes
The phrase "demand related to the demand for other products" describes __________.
dependent demand
In MRP, system nervousness is caused by __________.
management's attempt to continually respond to minor changes in production requirements
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 __________.
master production schedule
Distortion in MRP systems can be minimized when safety stock is held at the __________.
raw material level
If a load report (resource requirements profile) shows a work center scheduled beyond capacity, then __________
the work center's load may be smoothed
