chapter 11 for exam 3
MRP system
Among the four core processes of an organization that link activities within and across firms in a supply chain, the ________ interacts with all of them either through its inputs or outputs.
c
An example of a dependent demand item for services is a(n): A) menu in a restaurant. B) jukebox in a club. C) operating suite at a hospital. D) a pilot's checklist for an airline.
t
An intermediate item must have at least one parent and at least one component.
a
Any item manufactured from one or more components is a(n): A) parent. B) component. C) intermediate item. D) purchased item.
t
Available-to-promise (ATP) quantities are only shown in the first period (if the projected on-hand inventory is greater than zero in the first period), and subsequently in periods when the MPS quantity is greater than 0.
t
Available-to-promise inventory is the amount of end items that marketing can promise to customers by a certain date.
f
A bill of materials (BOM) shows all of the components of an item, the parent-component relationships, usage quantities, and lot size derived from engineering and process designs.
t
A bill of materials is a record of all the components of an item, the parent-component relationships, and the usage quantities derived from engineering and process designs.
enterprise process
A companywide process that cuts across functional areas, business units, geographic regions, and product lines is a(n) ____
a
A companywide process that cuts across traditional functional areas, business units, geographic regions, and product lines is a(n): A) enterprise process. B) master production scheduling process. C) kinetic process. D) full-business process.
t
A component is an item that may go through one or more operations to be transformed into or become part of one or more parents.
c
A computer-generated memo used by inventory planners to make decisions about releasing new orders and adjusting due dates of scheduled receipts is a(n): A) enterprise report. B) infinite capacity. C) action notice. D) input-output report.
c
A front-office module for an ERP system includes: A) manufacturing. B) accounting and finance. C) sales and marketing. D) human resources.
f
A materials requirements planning (MRP) explosion occurs when the system is bombarded with too many orders to schedule at one time.
t
A parent is any item manufactured from one or more components.
t
Dependent demand for an item occurs because the quantity required for it varies with the production plans of one or more parents
single database
ERP revolves around a(n) ________.
b
Entering new information in the database of an ERP system is a(n): A) data packet. B) transaction. C) record. D) file.
c
Facilitating goods in a hotel's bill of resources would include a: A) housekeeper. B) fax machine. C) towel. D) front-desk clerk.
t
For items manufactured in-house, one component of the planned lead time is waiting time.
t
Gross requirements are the total demand derived from all parent production plans.
b
If a planned receipt for an item is due in week 6 and the item's lead time is two weeks, in which week will the corresponding planned order release occur? A) week 2 B) week 4 C) week 6 D) week 8
f
If the demand for an independent demand item is continuous and uniform, so will the planned order releases of its components.
component
In MRP, a(n) ________ is an item that may go through one or more operations to be transformed into or become part of one or more parents.
parent
In MRP, a(n) ________ is any item manufactured from one or more components.
f
Lot-for-lot (L4L) is a rule that maintains the same order quantity each time an order is issued.
t
MRP II ties MRP to the company's financial system.
explosion
MRP ________ is a process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedule of all the subassemblies, components, and raw materials needed by the final products
t
Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.
a linkage to the financial system
One thing that an MRP II system has that an MRP system does not is ________.
available to promise inventory
Operations produces a number of items in one production period. Those items that are not produced for a specific customer order are ________.
f
Part commonality tends to increase inventory costs.
f
Planned receipts are estimates of the amount of inventory available each week after gross requirements have been satisfied.
POQ rule
The L4L rule is a special case of the _
bill of materials, BOM
The ________ is a record of all components of an item, the parent-component relationships, and usage quantities derived from engineering and process design.
t
The bill of resources (BOR) is a record of parent-component relationships and all the required materials, equipment time, staff, and other resources needed, including the usage quantities.
f
The companies SAP AG and Microsoft have the largest installed base of customers for ERP packages.
orders, orders placed
The lot-for-lot (L4L) rule minimizes inventory investment but it also maximizes the number of ________.
f
The master production schedule (MPS) is the part of the material requirements planning that specifies when components must be ordered or assembled.
t
The periodic order quantity (POQ) rule tends to keep more inventory on hand than the lot-for-lot rule, but less inventory on hand than the fixed order quantity rule.
f
The portion of the master production schedule farthest into the future is often frozen to reduce forecasting requirements.
t
The projected on-hand inventory in the MPS takes into account customer orders (booked) as well as the MPS quantities.
f
The projected on-hand inventory in the MPS takes into account scheduled receipts, but not planned receipts.
a
The service analogy to the bill of materials in a manufacturing company is the bill of: A) resources. B) services. C) sub-services. D) tender
sales and operations plan
The sums of the quantities in the master production schedule must equal those in the ________.
d
Under which one of the following circumstances can an MRP system be used to its best advantage? A) when the item's demand depends only on customer demand B) when the item's demand is uniform C) when the item's demand is constant D) when the item's demand depends on the production plans of its parent(s)
lead time
Waiting time and process time are two components of ________.
d
Which best defines the gross requirements for a component item? A) the forecasted customer demand for the component B) the amount of safety stock needed to buffer against uncertainties C) the sum of gross requirements for all parents of the component D) the total demand for the component derived from all immediate parents
d
Which of the following is NOT an example of dependent demand items? A) shoelaces, shoes B) wheels, car C) carafes, coffeemakers D) ice skates, roller skates
c
Which of the following is NOT used to derive an item's gross requirements? A) the MPS for immediate parents that are end items B) the planned order releases for immediate parents below the MPS level C) the MPS components that are not purchased items D) any other requirements not originating in the MPS, such as the demand for replacement parts
d
Which of the following is a back-office module in a typical ERP system? A) customer service B) sales C) marketing D) human resources
a
Which of the following statements about ERP systems is BEST? A) Recent studies have shown that the most successful ERP implementations use standardized systems. B) ERP systems written in XML require complete replacements of a company's legacy systems. C) A company must adapt their ERP system to their existing processes in order for all employees to gain a benefit from the new system. D) An ERP system requires a regular synchronization of all of the module databases, which is usually accomplished automatically when the business is not conducting business.
d
Which of the following statements about MRP II is BEST? A) It is computationally faster than regular MRP. B) It is limited only to aiding order-launching decisions. C) It incorporates informal systems through the use of expert systems technology. D) It provides more extensive information than MRP because it is tied to the company's financial system
d
Which of the following statements about MRP is TRUE? A) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing. B) MRP gross requirements for a parent item are equal to the planned order releases of its components. C) MRP logic is based on the logic of uniform, continuous demand, and item independence. D) MRP gross requirements for a component depend on the planned order releases of its immediate parents.
b
Which of the following statements about service resource planning is TRUE? A) The service analogy to the BOM in a manufacturing company is a bill of lading (BOL). B) One resource that every service provider manages is cash. C) There is no such thing as dependent demand in the service sector. D) As services are completed, the accounts receivable decrease.
c
Which of the following statements concerning MRP is TRUE? A) Dependent-demand items tend to experience relatively constant demand rates. B) MRP systems use independent demands for each component item. C) Capacity requirements planning (CRP) uses open orders (scheduled receipts) and planned order releases to estimate capacity requirements for critical workstations. D) The most accurate way to forecast dependent demand is to examine past usage rates.
d
Which of the following uses of MRP in promoting a healthy environment is NOT used? A) An MRP system can track waste in a bill of materials as a component of an item. B) When the master production schedule is developed for a product, reports can be generated that project the quantity of waste. C) When the master production schedule is developed for a product, reports can be generated that project the timing of waste. D) The MRP system can be used to communicate directly with the International Organization for Standardization to file ISO 9000 documentation.
a
Which one of the following is a feature of MRP II, but not available in basic MRP systems? A) financial projections B) action notices C) dispatch lists D) capacity reporting
d
Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory? A) periodic order quantity (POQ), with P = 2 B) fixed order quantity (FOQ) C) economic order quantity (EOQ) D) lot for lot (L4L)
c
Which one of the following is an input to the MRP system? A) shop-floor schedules B) financial reports C) master production schedule D) purchasing orders
b
Which one of the following statements about lot-sizing rules is TRUE? A) The periodic order quantity (POQ) rule seeks to create inventory remnants. B) If the POQ rule is used, an item's lot size can vary each time an order is placed. C) The lot-for-lot (L4L) rule is a special case of the fixed-order quantity (FOQ) rule. D) All lot-sizing rules seek to minimize inventory levels.
a
Which statement on MRP explosion is BEST? A) It calculates the total number of subassemblies, components, and raw materials needed for each parent item. B) It calculates the total number of raw materials to be purchased from all suppliers. C) It calculates the total number of parts to be produced for each parent item. D) It calculates the total number of parts needed to be produced less the number of parts on hand for each parent item.
Lot-for-lot, L4L
_ is a lot-sizing rule under which the lot size ordered covers the gross requirements of a single week.
MRP, material requirements planning
__ is a computerized information system developed specifically to aid in managing dependent-demand inventory and scheduling replenishment orders.
Part commonality
__ is the degree to which a component has more than one immediate parent.
Gross requirements
____ are the total demand derived from all parent production plans.
Capacity requirements planning, CRP
____ is a technique used for projecting time-phased capacity requirements for workstations.
Manufacturing resource planning, MRP II
____ ties the basic MRP system to the company's financial system.
Scheduled receipts
_____ are orders that have been placed but not yet completed.
Projected on-hand inventory
_______ is an estimate of the amount of inventory available each week after gross requirements have been satisfied.
a
A technique used for projecting time-phased capacity requirements for workstations is called: A) capacity requirements planning. B) time-adjusted output control. C) input-output control. D) work center planning.
purchased
A(n ) ________ item has one or more parents but no components.
bill of resources
A(n) ________ is a record of a service firm's parent-component relationships all of the materials, equipment, time, staff, and other productive assets associated with them, including usage quantities.
inventory record
A(n) ________ is a record that divides the future into time periods called time buckets.
subassembly
A(n) ________ is an intermediate item that is assembled from one or more components.
remnant
A(n) ________ is inventory carried into a week but too small to prevent a shortage.