Chapter 15

40. A _______________ of material is used to plan the production of products with many optional features. a. K-bill b. modular bill c. phantom bill d. time-phased bill

B

44. ______________ is a lot sizing technique that orders for multiple demand periods is referred to as a. Lot-for-lot (L4L) b. Periodic order quantity (POQ) c. Economic order quantity(EOQ) d. Multiple order quantity (MOQ)

B

38. The product structure file lists all of the following except a. the product's demand. b. the items that go into the product. c. a brief description of each item. d. when and in what quantity each item is needed in the assembly process.

A

48. Which of the following would not be used for an overloaded condition? a. pulling work ahead b. rerouting jobs to alternative work centers c. pushing work back d. splitting lots between two or more machines

A

36. Material requirements planning (MRP) is a useful for all of the following except a. dependent demand items. b. discrete demand items. c. independent demand items. d. erratic orders.

C

39. A phantom bill of material is used a. to group small, loose parts together. b. when the product is manufactured in major subassemblies. c. for subassemblies that are immediately consumed in the next stage of production. d. when due dates have not been calculated.

C

41. The item master file contains all the following except a. on-hand quantities. b. lead times. c. planned order releases. d. on-order quantities.

C

45. Which of the following is not a major input into capacity requirements planning (CRP)? a. planned order releases b. routing file c. load profiles for each work center d. open orders file

C

47. All of the following can be used for underloaded conditions except a. acquiring additional work. b. pushing work back. c. pulling work ahead. d. reducing normal capacity.

C

21. Material requirements planning (MRP) is more useful for simple products and less useful for complex products.

FALSE

10. Modular bills of material are used to group small, lose parts together into a kit.

False

11. Information concerning on-hand quantities, lot sizes and, lead time, figures can be found in the master production schedule (MPS).

False

14. The periodic order quantity (POQ) lot sizing technique that places orders every demand period.

False

18. The application modules that comprise the ERP system are designed to support only customer relationship management processes.

False

19. ERP systems are only concerned with production and marketing processes.

False

22. The total length of time to purchase an item from a supplier is called its cumulative lead time.

False

25. A phantom bill of material is appropriate when a product consists of assemblies that are later combined to form a variety of final products.

False

27. Firms that successfully implement an MRP system no longer require cycle counting of inventory.

False

28. A matrix is used to organize and display the information generated by the MRP process.

False

3. One objective of material requirements planning (MRP) is to utilize all available capacity.

False

31. Enterprise resource planning integrates business processes at the expense of customer interaction.

False

34. The last stage in ERP implementation involves analyzing business processes.

False

6. A forecast of dependent demand requirements is one of the major inputs into the MRP process.

False

8. The master production schedule (MPS) is a major output of the MRP process.

False

9. The optimal time required to manufacture a product is called its cumulative lead time.

False

1. Lot sizing rules are used in MRP to determine work or purchase order quantities.

True

1. Material requirements planning (MRP) translates the master production schedule into requirements for components, subassemblies, and raw materials.

True

13. Planned order releases at one level of a product structure generate gross requirements at the next level.

True

15. Capacity requirements planning (CRP) projects the load from a given material plan onto the capacity of a system.

True

16. A load profile displays underloads and overloads.

True

17. An enterprise resource planning (ERP) system shares information across functional areas.

True

2. Capacity requirement planning (CRP) converts the material plan into labor and machine workloads.

True

20. Customer relationship management (CRM) software plans and executes business processes that involve customer interactions.

True

23. The quantities reported on a master production schedule may reflect a combination of actual and forecasted demand.

True

24. The quantities displayed on a master production schedule represent production and not actual demand.

True

26. Because the item master file is an input into the MRP process it should be updated to reflect any revisions or changes.

True

29. Effective capacity is determined by multiplying the rated capacity by utilization and efficiency.

True

30. Load leveling is used to resolve underloaded and overloaded capacity conditions.

True

32. ERP application modules can be used alone or in combination.

True

33. Single-source ERP systems are often easier to integrate than systems built using the best-in-breed approach.

True

35. Customer relationship management systems change the focus from managing products to managing customers.

True

4. A material requirements planning (MRP) system serves as both an inventory control system and as a production scheduling system.

True

5. Material requirements planning (MRP) is useful for managing and scheduling discrete demand items.

True

7. Very simple products typically do not require material requirements planning (MRP) to plan production or monitor inventory levels.

True

37. All of the following are inputs into the MRP process except a. the master production schedule. b. the product structure file. c. the item master file. d. the planned order report.

D

42. The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as a. cycle counting. b. lot sizing. c. exploding. d. netting.

D

43. The MRP process of determining requirements for lower level items based on the master production schedule is referred to as a. lot sizing. b. netting. c. backward scheduling. d. exploding.

D

46. A load profile compares a. requirements for all lower-level items to higher-level items. b. cumulative lead times to projected lead times. c. the quantities in which items should be produced to actual demand. d. released and planned orders with work center capacity.

D