MS350 Chapter 9

Which of the following statements best characterizes an MRP system?

A system-driven logic that allows a company to tie the production functions together from a material planning and control view.

In which of the following industry types would MRP provide high benefits? Assemble-to-order Engineer-to-order Assemble-to-stock Make-to-order

Assemble-to-order Engineer-to-order Assemble-to-stock

A(n) ____ ____ ____ system is a computer system that integrates application programs from the functional areas of a firm.

Enterprise resource planning

True or false: Finished goods purchased by individuals external to the organization are considered dependent demand items.

False

Which of the following is true about MRP? MRP is not used for dependent demand items. MRP is an acronym for Material Requirements Planning. MRP is the highest level of planning in most organizations. MRP is used to determine the number of parts, components, and other materials needed to produce a product.

MRP is an acronym for Material Requirements Planning. MRP is used to determine the number of parts, components, and other materials needed to produce a product.

Which of the following is/are issues a master scheduler must consider? Trade-off manufacturing, engineering and marketing conflicts. Adjust the raw material supply schedule as needed. Never lose sight of the aggregate plan. Be involved with customer order promising. The firms financing plans.

Trade-off manufacturing, engineering and marketing conflicts. Never lose sight of the aggregate plan. Be involved with customer order promising.

Outside of determining parts, components, and materials, MRP provides

a schedule for when each of these should be produced or ordered.

From the highest level planning at the top to the lowest level planning at the bottom, rank the following. material requirements planning aggregate planning master production schedule

aggregate planning master production schedule material requirements planning

If a company has more units in the master production schedule than firm customer orders, the residual is called?

available to promise

MRP systems tend to work best in companies where products are made in ________ using the same productive equipment.

batches

Lumpiness, or the tendency for uneven production, further down the creation sequence is

caused by items being withdrawn from inventory in lots.

The master production schedule is used to plan

end items

A material requirements planning system interfaces with the master production schedule, bill-of-materials file and __________.

inventory records file

Which of the following would be located on the MPS plan? vehicle engine purchased for a production line. pen caps ordered by a pen manufacturer from a supplier. pens ordered from an office supply company. a new vehicle purchased from an automotive dealer.

pens ordered from an office supply company. a new vehicle purchased from an automotive dealer.

Some benefits of an ERP system are human resources knows how many employees to schedule. quality management can develop inspection points for products during manufacturing. sales can track all the details of an order. manufacturing knows about orders as soon as they are entered.

quality management can develop inspection points for products during manufacturing. sales can track all the details of an order. manufacturing knows about orders as soon as they are entered.

The next level in the planning process down from an aggregate plan is called?

the master production schedule

____ ____ are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.

time fences

Which of the following is not a type of time fence described in the text?

variable