ISDS 14

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

FCS recognizes the finite nature of capacity while MRP does not

MRP II is accurately described as

MRP augmented by other resource variables

When safety stock is deemed absolutely necessary, the usual policy is to build in into which category of the MRP logic?

Projected on hand

Which of the following statements regarding Wheeled Coach is False?

Wheeled coach's MRP system maintains excellent record integrity

Distortion in MRP systems can be minimized when safety stock is held at the

a and c. Purchased component or raw material level and work in process level

low level coding means that

a component item is coded at the lowest level at which it appears in the BOM structure

Which of the following best describes a gross material requirements plan?

a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started

Distribution resource planning (DRP) is

a time-phased stock replenishment plan for all levels of a distribution netowrk

the aggregate plan gets input or feedback from which of the following areas?

all of the above

Capacity planning in closed loop MRP

all of the above are true

Dependent demand and independent demand items differ in that

all of the above are true

Which of the following regarding enterprise resource planning (ERP) is true?

all of the above are true

Which of the following statements regarding the gross material requirements plan is true?

all of the above are true

Enterprise resource planning (ERP)

all of the above are true of ERP

enterprise resource planning (ERP)

automates and integrates the majority of business processes

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.

bill of material

a bill of material lists the

components, ingredients, and materials required to produce an item

the bill of material contains information necessary to

convert (explode) net requirements at one level into gross requirements at the next level

in job shop (make to order) operations, the master production schedule is usually expressed in

customer orders

the phrase "demand related to the demand for other products" describes

dependent demand

in continuous (make to stock) operations, the master production schedule is usually expressed in terms of

end items

a bill of material must be updated with the corrected dimensions of a part. The document that details this change is a(n)

engineering change notice

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

enterprise resource planning

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

is impossible

Which of the following is false concerning enterprise resource planning (ERP)?

it is inexpensive to implement

by convention, the top level in a bill of material is

level 0

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

lot-for-lot

Which of the following lot-sizing techniques results in the lowest holding costs?

lot-for-lot

In MRP system, system nervousness is caused by

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(n)

master production schedule

the ____ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities

master production schedule

firms making many different final products use ______ to facilitate production scheduling

modular bills

Which of the following statements best compares modular bills and phantom bills?

modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried

linking a part requirement with the paint component that caused the requirement is referred to as

pegging

a master production schedule contains information about

quantities and required delivery dates of final products

All of the following are advantages of enterprise resource planning (ERP) except it

requires major changes in the company and its processes to implement

Which of the following statements regarding MRP in services is true?

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

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

supermarket

The number of unites projected to be available at the end of each time period refers to

the amount projected to be on hand

a material requirements plan contains with regard to all of the following except

the capacity needed to provide the projected output rate

Material requirements plans specify

the quantity and timing of planned order releases

Which of the following statements is true about the MRP plan when using lot-for-lot ordering?

the quantity of gross requirements for a child item is equal to the quantity of planned order release multiplied by the number of child items used in the parent assembly

if a load report (resource requirements profile) shows a work center scheduled beyond capacity

the work centers load may be smoothed by such tactics as operations splitting or lot splitting

Demand for a given items is said to be dependent if

there is a clearly identifiable parent

One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)

time fences

Which of the following statements regarding lot-sizing is true?

too much concern with lot-sizing results in false accuracy

a master production schedule specifies

what product is to be made, and when