ISDS 3115 CH 14
By convention, what is the top level in a product structure? A. level 0 B. level 1 C. level T D. level 10 E. level 100
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 attempt to evaluate alternative plans before making a decision. D. the use of phantom bills of material. E. management's marking part of the master production schedule as "not to be rescheduled".
A
The minimum record accuracy required for successful MRP is approximately which of the following? A. 99% B. 90% C. 97% D. lower than 90% E. 95%
A
The operations manager has two important tools available to deal with MRP system nervousness. Those tools are A. time fences and pegging. B. pseudo bills and kits. C. net and gross requirements. D. buckets with back flush.
A
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. ERP B. BOM C. CIM D. MRP
A
What is a lot-sizing technique that orders the quantity needed during a predetermined time between orders? A. POQ B. Wagner-Whitin C. EOQ D. part period balancing
A
What provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times? A. closed-loop MRP system B. lot sizing C. system nervousness D. MRP II
A
Which of the following is NOT true about MRP limitations? A. MRP does not tell you that a job needs to be completed on a certain week or day. B. MRP is considered an infinite scheduling technique. C. MRP is an excellent tool for product-focused and repetitive facilities, but it has limitations in process (make-to-order) environments. D. MRP does not do detailed scheduling.
A
Which of the following pieces of information is NOT contained in a bill of material? A. lead times B. physical dimensions C. quantities of components D. raw materials to be used
A
Which of the following statements is NOT true? A. For any product, some components of that product are independent demand items. B. Demand for items is dependent when the relationship between the items can be determined. C. Less inventory frees up capital and floor space for other uses. D. For any product for which a schedule can be established, dependent techniques should be used.
A
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. modular bill B. planning bill C. phantom bill D. low-level bill E. component bill
B
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. EIS B. ERP C. MRP D. SCM
B
Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?" A. pegging B. time fence C. freeze point D. system nervousness
B
Which of the following is NOT one of the benefits in MRP? A. improved utilization of facilities and labor B. increased inventory levels C. better response to customer orders as the result of improved adherence to schedules D. faster response to market changes
B
Which of the following statements is NOT true about the EOQ? A. The EOQ can be a reasonable lot-sizing technique when demand is relatively constant and independent. B. The EOQ is preferable when dependent demand exists. C. The EOQ can be used as a lot-sizing technique for MRP systems. D. The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production schedule.
B
Which of the following lot-sizing techniques results in the lowest holding costs? A. Wagner-Whitin algorithm B. lot-for-lot C. the quantity discount model D. POQ E. EOQ
B
Enterprise resource planning (ERP): A. seldom requires software upgrade or enhancement. B. is inexpensive to implement. C. automates and integrates the majority of business processes. D. does not integrate well with functional areas other than operations. E. all of the above
C
What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular date? A. lead time B. net requirements plan C. gross material requirements plan D. master production schedule
C
What is a time-phased stock-replenishment plan for all levels of the supply chain? A. BOM B. MRP II C. DRP D. MRP
C
What is the lot-sizing technique that generates exactly what was required to meet the plan? A. Wagner-Whitin B. economic order quantity C. lot-for-lot D. periodic order quantity
C
Which of the following statements about DRP is NOT true? A. DRP procedures and logic are analogous to MRP. B. DRP stands for "distribution resource planning." C. DRP pushes inventory through the system. D. Lead times are considered in DRP.
C
Which of the following statements is NOT true about DRP? A. Effective use of DRP requires an integrated information system to rapidly convey planned order releases from one level to the next. B. The goal of a DRP system is small and frequent replenishment within the bounds of economical ordering and shipping. C. The DRP procedure starts with the forecast at the supplier level. D. When dependent techniques are used in the supply chain, they are called distribution resource planning (DRP).
C
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 gross requirements for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. C. 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. 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.
C
Which of the following tools means tracing upward in the BOM from the component to the parent item? A. bucketing B. system nervousness C. pegging D. time fencing
C
A bill of materials for a menu item in a restaurant is also called a A. food bill. B. recipe. C. bill of ingredients. D. product specification.
D
Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production are called A. grocery resource planning. B. enterprise resource planning. C. distribution resource planning. D. efficient consumer response.
D
The gross material requirements plan combines A. the net requirements plan and the aggregate plan. B. the net requirements plan and the time-phased schedule. C. a master production schedule and the net requirements plan. D. a master production schedule and the time-phased schedule.
D
What is a list of quantities of components, ingredients, and materials required to make a product? A. master production schedule B. engineering change notice C. purchase order D. bill-of-material
D
What is a report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders? A. MRP II report B. pegging report C. closed-loop report D. load report
D
What is one of the tools that is particularly useful in reducing system nervousness in an MRP system? A. modular bills B. time phasing C. closed loop system D. time fences E. lot sizing
D
What is the act of breaking up an order and running part of it ahead of schedule? A. pegging B. operations splitting C. overlapping D. lot splitting
D
What sends a lot to two different machines for the same operation? A. overlapping B. pegging C. lot splitting D. operations splitting
D
Which of the following statements is NOT true about MRP? A. MRP provides a clean structure for dependent demand. B. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements. C. MRP has evolved as the basis for Enterprise Resource Planning. D. MRP is an independent demand technique used in a production environment.
D
Which of the following statements is NOT true regarding ERP? A. ERP usually provides financial and human resource management information. B. ERP allows companies share a common database and business practices throughout the enterprise. C. The objective of an ERP system is to coordinate a firm's whole business. D. ERP promises slow, but accurate, information.
D
Which of the following lot-sizing techniques is likely to prove the most complex to use? A. lot-for-lot B. periodic order quantity (POQ) C. economic order quantity (EOQ) D. Wagner-Whitin
D
Low-level coding means that: A. the lowest-paid staff member in the production department performs the coding. B. the code being used is the code for the lowest level in the BOM structure. C. a final item has only a few levels in the BOM structure. D. a component item is coded at the lowest level at which it appears in the BOM structure. E. the top level of the BOM is below level zero and that BOMs are not organized around the finished product.
D
The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.
TRUE
Which of the following is an advantage of ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It creates commonality of databases. D. It is simple enough that companies have an easy time adjusting to it.
c
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 gross requirements for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. C. 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. 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.
c