ISDS 3115 REVIEW CHAPTER 14
By convention, the top level in a bill of material is A) level 0 B) level 1 C) level T D) level 10 E) level 100
A
Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E? A) 50 B) 100 C) 150 D) 200 E) 300
A
What lot-sizing technique is generally preferred when inventory holding costs are extremely high? A) lot-for-lot B) EOQ C) part-period balancing D) the Wagner-Whitin algorithm E) All of the above are appropriate for the situation.
A
Which of the following is not a key benefit of MRP? A) quality increases B) better response times to customer orders C) faster response to market changes D) improved utilization of facilities E) reduced inventory levels
A
Which one of the following is an example of JIT being used for competitive advantage? A) Jones Company has decreased the number of job classifications to just a few. B) Lafourche Metals increases the number of its suppliers to be less dependent on just a few. C) Houma Fabricators is proud to announce that incoming goods are inspected. D) Acme Company tells its maintenance department to intervene only if a machine breaks down. E) Caro Specialty Metals, Inc. has built a new, huge warehouse to store inventory.
A
A bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n) A) modular bill B) engineering change notice C) resource requirements profile D) lead time-offset product structure document E) planning bill
B
A master production schedule contains information about A) quantities and required delivery dates of all subassemblies B) quantities and required delivery dates of final products C) inventory on hand for each subassembly D) inventory on hand for each final product E) scheduled receipts for each final product
B
Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is __________ weeks. A) 6 B) 9 C) 12 D) 18 E) 28
B
Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is not part of JIT? They A) communicate their schedules to suppliers B) produce in long production runs to reduce the impact of setup costs C) use a pull system to move inventory D) continuously work on reducing setup time E) produce in small lots
B
If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present? A) close relationship with the restaurant's suppliers of food, utensils, and equipment B) food preparation in large batches C) a kitchen set up to minimize wasteful movements D) lean inventories of food E) All of the above should be present.
B
The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of A) Lead time B) Kanban C) Push production D) Kaizen E) EOQ
B
The number of kanbans should be equal to A) one B) the ratio of (demand during lead time + safety stock) to container size C) ½ of the EOQ D) one full day's production divided by the EOQ E) none of the above
B
Which of the following is not a disadvantage of ERP systems? A) They involve an ongoing process for implementation, which may never be completed B) They have software that is off-the-shelf coding. C) Expertise in ERP is limited, with staffing an ongoing problem. D) They are so complex that many companies cannot adjust to them. E) Implementation may require major changes in the company and its processes.
B
Which of the following is not characteristic of a TPS employee? A) knowledgeable B) strict job classifications C) know more about their job than anyone else D) empowered E) All of the above characterize a TPS employee.
B
) JIT makes quality cheaper because A) the cost of low quality can be hidden as inventory cost B) JIT adds more buffers to the system C) JIT prevents long runs of defects D) B and C E) A, B and C
C
) The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand. The net requirements for N are A) 150 B) 170 C) 300 D) 320 E) 440
C
If a load report (resource requirements profile) shows a work center scheduled beyond capacity A) the company must add capacity by enlarging the facility B) the company must add capacity by such tactics as overtime and subcontracting C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting D) the aggregate plan must be revised E) the Wagner-Whitin algorithm should be used to rebalance the load
C
Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans? A) not enough information B) 1 C) 5 D) 7 E) 8
C
The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are A) 20 B) 120 C) 180 D) 240 E) 440
C
The following table is an example of a(n) Week 1 Week 2 Week 3 Week 4 Week 5 Clothes Washer 200 100 Clothes Dryer 300 100 100 100 Upright Freezer 200 500 A) aggregate plan B) load report C) master production schedule D) capacity plan E) inventory record
C
The word "kanban" means A) low inventory B) employee empowerment C) card D) continuous improvement E) lot size of one
C
When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic? A) Gross Requirements B) Scheduled Receipts C) Projected On Hand D) Net Requirements E) Planned Order Receipts
C
Which of the following is an illustration of employee empowerment? A) UPS drivers are trained to perform several motions smoothly and efficiently. B) Unionization of the work place brings better morale and therefore better quality. C) "No one knows the job better than those who do it." D) all of the above E) none of the above
C
Which of the following is false concerning enterprise resource planning (ERP)? A) It attempts to automate and integrate the majority of business processes. B) It shares common data and practices across the enterprise. C) It is inexpensive to implement. D) It provides and accesses information in a real-time environment. E) All of the above are true.
C
Which of the following is not an attribute of lean operations? A) eliminating almost all inventory through just-in-time techniques B) minimizing space requirements by reducing the distance a part travels C) pushing responsibility to the highest level possible through centralized decision making D) educating suppliers to accept responsibility for helping meet customer needs E) All of the above are attributes of lean operations.
C
Which of the following statements regarding JIT in services is true? A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape. B) Excess customer demand in services such as air travel is met by dipping into safety stocks. C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services. D) Scheduling is not relevant to effective use of JIT in services. E) All of the above are false.
C
) A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action? A) It used a pull system to move inventory. B) It produced in ever smaller lots. C) It required deliveries directly to the point of use. D) It picked the supplier that offered the lowest price based on quantity discounts. E) It worked to reduce the company's in-transit inventory.
D
) Enterprise resource planning (ERP) A) seldom requires software upgrade or enhancement B) does not integrate well with functional areas other than operations C) is inexpensive to implement D) automates and integrates the majority of business processes E) all of the above
D
) Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes? A) overproduction B) queues C) transportation D) inventory E) defective product
D
A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans? A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon. C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished. D) The meat department stocking up on turkeys before Thanksgiving. E) All of the above are kanban applications.
D
All of the following are advantages of enterprise resource planning (ERP) except it A) creates commonality of databases B) increases communications and collaboration worldwide C) helps integrate multiple sites and business units D) requires major changes in the company and its processes to implement E) can provide a strategic advantage over competitors
D
An engineering change notice is used to change a(n) A) MRP B) MPS C) ERP D) BOM E) none of the above
D
Kanban is associated with all of the following except A) small lot sizes B) signals, such as cards, lights, or flags C) moving inventory only as needed D) increased material handling E) reductions in inventory
D
Which one of the following does not exemplify JIT used for competitive advantage? A) Acme Foods decides to decrease the number of its suppliers to just a few. B) Ajax, Inc. is proud to announce that incoming goods are delivered directly to the point of use. C) Ardoyne Builders has a scheduled preventive maintenance program. D) Cheramie Trucking trains workers to specialize and become very efficient in one job. E) Cajun Contractors has reduced the amount of space for inventory.
D
Which one of the following is not a requirement of JIT systems? A) quality deliveries on time B) low setup time C) training support D) strong job specialization E) employee empowerment
D
Which one of the following scenarios represents the use of a kanban to reduce inventories? A) A supervisor tells the operators to stay busy and start producing parts for next month. B) A "supplier" work center signals the downstream workstation that a batch has been completed. C) A supervisor signals to several work centers that the production rate should be changed. D) A "customer" work center signals to the "supplier" workstation that more parts are needed. E) An operator asks the next station's operator to help him fix his machine.
D
) Effective use of MRP and other dependent demand models does not require which of the following? A) master production schedule B) bill of materials C) inventory availability D) lead times E) cost of individual components
E
) In the quest for competitive advantage, which of the following is a JIT requirement? A) small number of job classifications B) reduced number of vendors C) reduced space for inventory D) quality by suppliers E) All of the above are JIT requirements.
E
) Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans? A) not enough information B) 1 C) 5 D) 10 E) 25
E
) Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold? A) not enough information B) 1 C) 5 D) 10 E) 13
E
) Lean operations are known for their A) employee development B) supplier education C) supplier partnerships D) challenging jobs E) All of the above are attributes of lean operations.
E
) The technique known as level schedules A) requires that schedules be met without variation B) processes many small batches rather than one large one C) is known as "jelly bean" scheduling D) is based on meeting one day's demand with that day's production E) All of the above are true regarding level scheduling.
E
The minimum record accuracy required for successful MRP is approximately A) lower than 90% B) 90% C) 95% D) 97% E) 99%
E
Wheeled Coach insists all of the following tasks are key to successful MRP use except A) materials plan must meet both schedule requirements and facility capabilities B) plan must be executed as designed C) inventory investment must be minimized D) excellent record integrity must be maintained E) stringent quality control
E
Which of the following is false regarding the links between JIT and quality? A) Inventory hides bad quality; JIT immediately exposes it. B) JIT reduces the number of potential sources of error by shrinking queues and lead times. C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better. D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory. E) All of the above are true.
E
Which of the following regarding enterprise resource planning (ERP) is true? A) It involves an ongoing process for implementation. B) It can incorporate improved, reengineered "best processes." C) It has a software database that is off-the-shelf coding. D) ERP systems usually include MRP, financial and human resource information. E) All of the above are true.
E
Which one of the following statements is true about the kanban system? A) The quantities in the containers are usually large to reduce setup costs. B) It is associated with a push system. C) It is useful to smooth operations when numerous quality problems occur. D) The supplier workstation signals the customer workstation as soon as a batch is completed. E) The customer workstation signals to the supplier workstation when production is needed.
E
) Level scheduling means producing at a constant rate, regardless of customer demands.
F
) MRP is an excellent tool for scheduling products with variable lead times.
F
A dependent demand item is so called because its demand is dependent on customer preferences.
F
A push system means providing the next station with exactly what is needed when it is needed.
F
Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
F
By convention, the top level in a bill of material is designated level 1.
F
Customer demand will always remain an unknown, so it is not considered a source of variation.
F
Employee empowerment is unnecessary in the Toyota Production System, because automation and powerful information systems reduce the need for employee creativity and decision making.
F
In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.
F
In a JIT system, product inspection adds value by identifying defective items.
F
Increasing inventory exposes variability in production processes.
F
JIT brings about competitive advantage by faster response to the customer regardless of cost.
F
JIT systems carry inventory just in case something goes wrong.
F
MRP can be effective only if very accurate lot sizes are calculated in advance.
F
TPS stands for Total Production Streamlining.
F
The master production schedule is a forecast of demand for families of products.
F
The number of kanbans decreases as safety stock is increased.
F
The quality management tool called poka-yoke is not relevant to JIT systems.
F
With level schedules, a few large batches, rather than frequent small batches, are processed.
F
) A bill of material lists all components, ingredients, and materials needed to produce one unit of an end item.
T
) A kanban system requires little variability in lead time because shortages have their impact on the entire productive system.
T
) A scheduler may find that freezing the portion of the schedule closest to the due dates allows the production system to function and the schedule to be met.
T
) If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved.
T
) Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts.
T
) Reducing distance is a common JIT goal.
T
) The Toyota Production System requires that activities have built-in, automatic tests so that gaps between expectations and actuality are immediately evident.
T
Cross-training is a common JIT tactic to improve flexibility.
T
Hidden problems are generally uncovered during the process of reducing inventory.
T
If parts and subassemblies common to a variety of products are managed through the supermarket concept, formal order releases for such parts are not necessary.
T
In general, the lot-for-lot approach should be used whenever economical. Answer: TRUE
T
Inventory has only one positive aspect, which is availability; inventory has several negatives, including increased material handling, obsolescence, and damage.
T
JIT suppliers have concerns that the JIT firm's demands for small lot sizes are simply a way of transferring holding cost from manufacturer firm to the supplier firm.
T
Lead times, inventory availability, and purchase orders outstanding are among the five things operations managers must know for effective use of MRP.
T
Lower average inventory is feasible only if setup times are short.
T
Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.
T
One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed.
T
Product storage is an example of waste, in the sense that no value is added.
T
TPS stands for Toyota Production System.
T
The 5Ss-sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self discipline-are important to lean production because they act as a means to reduce waste.
T
The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.
T
Variability in manufacturing can occur because engineering drawings or specifications are incomplete or inaccurate.
T
Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective.
T
When implemented as a comprehensive manufacturing strategy, JIT, TPS, and lean systems sustain competitive advantage and result in increased overall returns.
T
) Which of the following is a step towards integrating JIT and MRP according to the text? A) smaller buckets B) increase quality C) scrap MRP, it does not work with JIT D) migrate from MRP to ERP E) All of the above are acceptable steps Answer: A
A
In MRP, system nervousness is caused by A) management's attempt to continually respond to minor changes in production requirements B) the use of the lot-for-lot approach C) management's marking part of the master production schedule as "not to be rescheduled" D) the use of phantom bills of material E) management's attempt to evaluate alternative plans before making a decision
A
The __________ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product. A) bill of material B) master production schedule C) inventory records D) assembly time chart E) net requirements chart
A
Which of the following best describes a gross material requirements plan? A) a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started B) an intermediate range plan for the scheduling of families of products C) a chart illustrating whether capacity has been exceeded D) a table that corrects scheduled quantities for inventory on hand E) a schedule showing which products are to be manufactured and in what quantities
A
Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)? A) FCS recognizes the finite nature of capacity while MRP does not. B) FCS works in services while MRP does not. C) MRP requires time buckets while FCS does not. D) FCS is an input into traditional MRP systems. E) FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ.
A
Distribution resource planning (DRP) is A) a transportation plan to ship materials to warehouses B) a time-phased stock replenishment plan for all levels of a distribution network C) a shipping plan from a central warehouse to retail warehouses D) material requirements planning with feedback loop from distribution centers E) a material requirements planning package used exclusively by warehouses
B
Firms making many different final products use __________ to facilitate production scheduling. A) planning bills B) modular bills C) phantom bills D) overdue bills E) none of the above
B
For the lot-sizing technique known as lot-for-lot to be appropriate A) future demand should be known for several weeks B) setup cost should be relatively small C) annual volume should be rather low D) item unit cost should be relatively small E) the independent demand rate should be very stable
B
Material requirements plans specify A) the quantities of the product families that need to be produced B) the quantity and timing of planned order releases C) the capacity needed to provide the projected output rate D) the costs associated with alternative plans E) whether one should use phantom bills of material or not
B
The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is A) MRP II B) enterprise resource planning C) the master production schedule D) closed-loop MRP E) not yet technically possible
B
The phrase "demand related to the demand for other products" describes A) a dependent variable B) dependent demand C) recursive demand D) regression analysis E) independent demand
B
Which of the following statements regarding lot-sizing is true? A) EOQ principles should be followed whenever economical. B) Too much concern with lot-sizing results in false accuracy. C) Lot-for-lot cannot be modified for scrap allowance or process constraints. D) The Wagner-Whitin algorithm simplifies lot size calculations. E) All of the above are true.
B
Which of the following statements regarding Wheeled Coach is false? A) Wheeled Coach has found competitive advantage through MRP. B) Wheeled Coach builds ambulances in a repetitive process. C) Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise. D) Wheeled Coach's MRP system maintains excellent record integrity. E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.
C
) Which of the following statements regarding MRP in services is true? A) MRP is for manufacturing only, and is not applicable to services. B) MRP can be used in services, but only those that offer very limited customization. C) MRP does not work in services because there is no dependent demand. D) Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling. E) None of the above is true.
D
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(n) A) net requirements document B) resource requirements profile C) aggregate plan D) master production schedule E) Wagner-Whitin finite capacity document
D
Demand for a given item is said to be dependent if A) it originates from the external customer B) there is a deep bill of material C) the finished products are mostly services (rather than goods) D) there is a clearly identifiable parent E) the item has several children
D
Dependent demand and independent demand items differ in that A) for any product, all components are dependent-demand items B) the need for independent-demand items is forecast C) the need for dependent-demand items is calculated D) All of the above are true. E) None of the above is true.
D
In job shop (make-to-order) operations, the master production schedule is usually expressed in A) end items B) modules C) kits D) customer orders E) warehouse orders
D
The Aggregate Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times.
F
The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique. Answer: FALSE
F
The economic part period is a fraction of a time bucket.
F
Time fences divide that segment of the MPS that can be revised from that section that is "frozen."
T
While ERP may provide a strategic advantage over competitors, it is so complex that many companies cannot adjust to it.
T
In continuous (stock-to-forecast) operations, the master production schedule is usually expressed in terms of A) end items B) modules C) kits D) customer orders E) warehouse orders
A
The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. The net requirements for C are A) 115 B) 175 C) 240 D) 690 E) 700
A
The __________ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities. A) master production schedule B) load report C) inventory records D) assembly time chart E) bill of material
A
Which of the following statements is true about the MRP plan when using lot-for-lot ordering? A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. E) All of the above are true.
B
A bill of material lists the A) times needed to perform all phases of production B) production schedules for all products C) components, ingredients, and materials required to produce an item D) operations required to produce an item E) components, ingredients, materials, and assembly operations required to produce an item
C
A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique. A) Wagner-Whitin B) economic part period C) supermarket D) gross material requirements E) resource requirements profile
C
A master production schedule specifies A) the raw materials required to complete the product B) what component is to be made, and when C) what product is to be made, and when D) the labor hours required for production E) the financial resources required for production
C
A material requirements plan contains information with regard to all of the following except A) quantities and required delivery dates of all subassemblies B) quantities and required delivery dates of final products C) the capacity needed to provide the projected output rate D) inventory on hand for each final product E) inventory on hand for each subassembly
C
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 A) Phantom B) Planning C) Modular D) Low-Level E) A and B
C
Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is __________ days. A) 6 B) 9 C) 13 D) 17 E) cannot be determined
C
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 manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks. A) 6 B) 7 C) 8 D) 10 E) cannot be determined
C
Given the following bill of material If the demand for product A is 30 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed? A) 3 B) 40 C) 70 D) 90 E) 110
C
Linking a part requirement with the parent component that caused the requirement is referred to as A) net requirements planning B) a time fence C) pegging D) kanban E) leveling
C
Low level coding means that A) a final item has only a few levels in the BOM structure B) it is the code for the lowest level in the BOM structure C) a component item is coded at the lowest level at which it appears in the BOM structure D) the top level of the BOM is below level zero and that BOMs are not organized around the finished product E) none of the above
C
One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are) A) modular bills B) time phasing C) time fences D) lot sizing E) closed loop system
C
In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket A) signals the need to purchase that end item in that period B) implies that value was scheduled by the MPS C) signals the need for a negative planned order receipt in that period D) is impossible E) All of the above are true.
D
In MRP, the number of units projected to be available at the beginning of each time period refers to A) net requirements B) scheduled receipts C) the projected usage of the item D) the amount projected to be on hand E) the amount necessary to cover a shortage
D
It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As? A) Week 1, 300 A s B) Week 1, 40 A s C) Week 5, 40 A s D) Week 4, 40 A s E) Week 4, 300 A s
D
Which portion of the master production schedule is normally fixed, frozen, or firm? A) the entire schedule B) only the aggregate schedule C) only the middle of the schedule D) only the near-term portion E) only the far-term portion
D
) If safety stock is desired it should be built into which portion of MRP? A) any B) none C) raw materials D) finished assemblies E) either C or D
E
A grill assembly takes 20 washers. Instead of listing these washers separately they are grouped into a single kit for production. The bill of material for the washers is classified as A) "Pseudo" B) Planning C) Modular D) Low-level E) A and B
E
An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is A) .005 B) 60 C) 72 D) 100 E) 200
E
Capacity planning in closed-loop MRP A) utilizes feedback about workload from each work center B) may make use of resource requirements profiles (load reports) C) may smooth work center loads with such tactics as overlapping and lot splitting D) does not add capacity, but rather seeks effective use of existing capacity E) All of the above are true.
E
Distortion in MRP systems can be minimized when safety stock is held at the A) purchased component or raw material level B) work-in-process level C) finished goods level D) A and B E) A and C
E
Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E? A) 4 B) 100 C) 200 D) 250 E) 300
E
The aggregate plan gets input or feedback from which of the following areas? A) engineering B) finance, marketing, and human resources C) the master production schedule D) procurement, production, and general management E) all of the above
E
The bill of material contains information necessary to A) place an order to replenish the item B) calculate quantities on hand and on order C) convert net requirements into higher level gross requirements D) convert gross requirements into net requirements E) convert (explode) net requirements at one level into gross requirements at the next level
E
Which of the following statements best compares modular bills and phantom bills? A) Both pertain to assemblies that are not inventoried. B) There is no difference between the two. C) Both pertain to assemblies that are inventoried. D) Modular bills are used for assemblies that are not inventoried, unlike phantom bills. E) Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried.
E
Which of the following statements regarding the gross material requirements plan is true? A) It shows total demand for an item. B) It shows when an item must be ordered from a supplier or when production must be started. C) It combines a master production schedule with the time-phased schedule. D) It requires several inputs, including an accurate bill of material. E) All of the above are true.
E
Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.
F
Phantom bills" are bills of material for subassemblies that do not exist in reality.
F
Since MRP is quite detailed in nature, it has no influence on the longer-range, less detailed aggregate planning.
F
) Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.
T
DRP is a time-phased stock-replenishment plan for all levels of a distribution network.
T
Finite capacity scheduling, unlike MRP, recognizes the capacity limitations of departments and machines when building schedules.
T
Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.
T
Gross material requirements do not take into account the amount of inventory on hand.
T
If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.
T
If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent" component of G.
T
MRP is generally practiced on items with dependent demand.
T
Reduced inventory levels and faster response to market changes are both benefits of MRP.
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Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.
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The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.
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The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.
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The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.
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The time-phased product structure, unlike the bill of material, adds the concept of lead times.
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Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy.
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When safety stock is deemed absolutely necessary, the usual policy is to build it into the projected on-hand inventory of the MRP logic.
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