MKT 411 exam 2
The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?
Master production schedule
Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?
Material requirements plan
An advantage/benefit of utilizing an ERP system includes which of the following?
Both "ERP systems are designed to take advantage of internet technology" and "ERP systems enable the firm to automate some of the steps of a manufacturing process"
Which of the following is NOT a common module of ERP systems?
Marketing resources management
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Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?
80 percent of the total annual $ usage is accounted for, by 20 percent of the items
Which of the following is true under the Periodic Review System?
A higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compare to the EOQ system
The __________ specifies which end product is to be made, how many are required, and when they need to be completed.
Aggregate production plan
Using the ________________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.
Best-of-breed solution
Which of the following would be considered a dependent demand item?
Bicycle tires used to assemble a bike
The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:
Bullwhip effect
Which of the following basic production strategies works best with make-to-order manufacturing firms?
Chase production strategy
Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:
Customer relationship management and human resource management
Why are firms migrating to ERP systems?
ERP systems tie together a variety of specialized systems
Which of the following is considered an advantage/benefit of utilizing an ERP system?
Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries
If an item is ordered using its economic order quantity, the annual carrying cost should be:
Equal to the annual ordering cost
All of the following may influence demand and should be considered when developing a forecast EXCEPT
Ergonomic conditions
The real value of Collaborative Planning, Forecasting and Replenishment (CPFR) comes from:
Exchange of forecasting information
The ABC inventory control prioritizes dependent demand inventory items into three groups, A, B, and C. A items receive the smallest amount of safety stock, while C items typically have the most safety stock.
False
The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.
False
Quantitative forecasts use mathematical techniques that are based on
Historical data
Inaccurate forecasts can result in negative outcomes like:
Imbalances in supply and demand
Which of the following is a disadvantage of carrying too much inventory?
It creates an unnecessary waste of scarce resources
According to the textbook, which of the following is considered a reason that ERP implementations fail?
Lack of communication within an organization
Which strategy uses overtime and subcontracting to cope with the high demand periods?
Mixed production strategy
If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:
Most recent positive ATP
Cyclical variations are longer than a year and can be influenced by:
Political factors
Which of the following is NOT an assumption of the economic order quantity (EOQ) model?
Production and use occur simultaneously
Which of the following is a benefit of CPFR?
Provides an analysis of key performance metrics, Uses joint planning and promotions management, and Integrates planning, forecasting and logistics activities
When there is not a lot of currently relevant data available it is generally best to use:
Qualitative forecasting
Which one of the following is NOT a type of qualitative forecasting?
Simple moving average
The ___________ solution picks all the desired applications from a single vendor for the ERP system.
Single integrator
According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT:
Supplier lead times
When linear trend forecasts are developed, demand would typically be:
The dependent variable
Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?
The level production strategy
Legacy MRP systems typically utilized multiple software packages and databases which caused:
The same information to be stored in multiple locations
Legacy MRP systems had which of the following limitations?
The systems were designed to perform a very specific operational function, The systems were not user-friendly, The systems needed continuous modifications
While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth?
The year 2000 millennium bug
Which one of the following is NOT a reason for firms to carry inventory?
To increase production change/setup costs
A positive error implies that a forecast was?
Too low
Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series?
Trend variations
The inventory turnover ratio shows how efficiently a firm is using its inventory to generate revenue.
True
Random variations in a Time Series component are due to:
Unpredictable events
If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that:
Your order lot size was higher than the EOQ