CH 14 DSM

An item's annual holding cost is $75. Each setup costs $100. Lead time is 2 weeks. Annual demand is 15,000. The EOQ lot size quantity would be ___________. ANSWER 200 72 60 I DON'T KNOW YET

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. ANSWER 8 10 6 I DON'T KNOW YET

8

Which of the following best describes a gross material requirements plan? ANSWER An intermediate-range plan for the scheduling of families of products. A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start. A schedule showing which products are to be manufactured and in what quantities. I DON'T KNOW YET

A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start.

Capacity planning in closed-loop MRP does not do which of the following? ANSWER Smooth work center loads Utilize feedback about workload Adds in additional capacity I DON'T KNOW YET

Adds in additional capacity

Effective use of MRP and other dependent demand models does not require which of the following? ANSWER Cost of individual components Lead times Bill of materials I DON'T KNOW YET

Cost of individual components

Which of the following statements regarding the gross material requirements plan is false? ANSWER It shows when an item must be ordered or when production must be started It includes inventory on hand It combines a master production schedule with the time-phased schedule I DON'T KNOW YET

It includes inventory on hand

Which of the following is false concerning enterprise resource planning? ANSWER It shares common data and practices across the enterprise. It is inexpensive to implement. It provides and accesses information in a real-time environment. I DON'T KNOW YET

It is inexpensive to implement.

What lot-sizing technique is generally preferred when inventory holding costs are extremely high? ANSWER Lot-for-lot Part period balancing Economic order quantity I DON'T KNOW YET

Lot-for-lot

Which of the following lot-sizing techniques results in the lowest holding costs? ANSWER Economic order quantity Lot-for-lot Part period balancing I DON'T KNOW YET

Lot-for-lot

MRP II is accurately described as: ANSWER MRP software designed for services enhanced MRP that includes all elements of the supply chain MRP augmented by other resource variables I DON'T KNOW YET

MRP augmented by other resource variables

Which of the following is not a key benefit of MRP? ANSWER Quality increases Faster response to market changes Improved response to customers I DON'T KNOW YET

Quality increases

Which of the following statements regarding MRP in services is true? ANSWER MRP can be used in services, but only for those that offer little customization. MRP does not work well in services because there is little (or no) dependent demand. Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling. I DON'T KNOW YET

Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.

Which of the following is a step towards integrating MRP and finite capacity? ANSWER Using pegging Using time fences Using smaller buckets I DON'T KNOW YET

Using smaller buckets

Enterprise Resource Planning __________. ANSWER seldom requires additional software automates and integrates the majority of business processes does not integrate well with other functional areas beyond operations I DON'T KNOW YET

automates and integrates the majority of business processes

Material requirements planning (MRP) does not consider __________. ANSWER capacity time buckets service organizations I DON'T KNOW YET

capacity

The phrase "demand related to the demand for other products" describes __________. ANSWER a dependent variable recursive demand dependent demand I DON'T KNOW YET

dependent demand

In MRP, system nervousness is caused by __________. ANSWER management's attempt to continually respond to minor changes in production requirements the use of the lot-for-lot approach management's attempt to evaluate alternative plans before taking action I DON'T KNOW YET

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 __________. ANSWER planning bill bill of material master production schedule I DON'T KNOW YET

master production schedule

The __________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities. ANSWER purchase order bill of material master production schedule I DON'T KNOW YET

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: ANSWER phantom modular planning I DON'T KNOW YET

modular

Firms making many different final products use __________ to facilitate production scheduling. ANSWER modular bills planning bills phantom bills I DON'T KNOW YET

modular bills

Linking a part requirement with a parent component that caused the requirement is referred to as: ANSWER pegging net requirement planning leveling I DON'T KNOW YET

pegging

Distortion in MRP systems can be minimized when safety stock is held at the __________. ANSWER work-in-process level any inventory point raw material level I DON'T KNOW YET

raw material level

All of the following are advantages of enterprise resource planning except it __________. ANSWER can provide a strategic advantage over competitors increases communication and collaboration between business units worldwide requires additional training I DON'T KNOW YET

requires additional training

If a load report (resource requirements profile) shows a work center scheduled beyond capacity, then __________. ANSWER the aggregate plan must be revised the work center's load may be smoothed the company must add capacity by enlarging the facility I DON'T KNOW YE

the work center's load may be smoothed