OMIS 430 Quiz 13

Which of the following statements about MRP II is/are true?

- Different functional areas contribute to the planning process. - It is an iterative process.

Which of the following are advantages of MRP?

-A means to allocate production time -Low levels of in-process inventory -Ability to evaluate capacity requirements

Which of the following are requirements of MRP?

-Accurate inventory records -Accurate master schedule -Integrity of file data

Which of the following are potential risks associated with MRP?

-Assumption of constant lead time -Products being produced differently from the bill of materials -Inaccurate forecasts

Which of the following statements about capacity requirements planning is/are true?

-Inputs include routing information. -Key outputs include load reports for each work center. -Inputs include the current shop load.

Which of the following statements about the master schedule are true?

-It does not have a predetermined or fixed time horizon. -It must be at least as long as the cumulative lead time.

Which of the following are advantages of ERP?

-It increases efficiency of operations. -It standardizes manufacturing processes. -It standardizes financial information across the company.

Which of the following statements about MRP II is/are true?

-It involves input from marketing and finance. -It expands MRP to include capacity requirements planning.

Which of the following statements about lot sizing are true?

-Lot-for-lot ordering does not tend to take advantage of economies of fixed order size. -Lot-for-lot ordering requires a new setup for each order. -Fixed-period ordering provides coverage for several periods at one time.

Which of the following statements about dependent demand are true?

-Once forecasts or production schedules are complete, dependent demand is known exactly. -The materials that go into the production of a car are considered dependent demand because they are a part of the car. -Dependent demand tends to be more intermittent than independent demand.

Which of the following are advantages of the net-change method of updating MRP records?

-Only the changes are exploded into the system. Everything else stays unchanged. -The system is always up-to-date.

Which of the following are primary reports generated by the MRP system?

-Order releases -Planned orders -Changes to planned orders

Which of the following are secondary reports generated by the MRP system?

-Performance-control reports -Exception reports -Planning reports

Which of the following statements about MRP processing are true?

-Projected on-hand inventory = scheduled receipts + available inventory from end of previous period. -Pegging is the process of determining the parent items that generated a set of material requirements. -Planned-order releases may be multiples of a specific quantity.

Which of the following are options for dealing with insufficient capacity?

-Shifting orders to adjacent periods. -Prioritize orders, delaying some. -Schedule overtime.

Which of the following are advantages of ERP?

-Standardizing HR information. -The integration of financial data.

Which of the following are advantages of the regenerative method of updating MRP records?

-The MRP system is relatively stable because it is not constantly being changed. -If changes cancel each other out, the system is not changed repeatedly "for nothing."

Which of the following statements about time fences for capacity requirements planning is/are true?

-The closest time fence is the most restricted. -They are used to prevent system nervousness.

Which of the following are disadvantages of ERP?

-There are a number of associated hidden costs. -It can be very expensive to implement. -It may require extended use of consultants.

What advantage of MRP eliminates the need to collect detailed usage information on the production floor?

Backflushing

In capacity requirements planning, ____________ _____________are reports that compare known and expected future capacity requirements with projected capacity availability.

Blank 1: load Blank 2: reports

A _____ _________ ___________ , known as the MPS, is the anticipated build schedule stating which end items are to be produced, when, and in what quantities for the next 12 weeks or so.

Blank 1: master Blank 2: production Blank 3: schedule

In MRP, ________ _________are the actual amount needed in a time period.

Blank 1: net Blank 2: requirements

Capacity requirements planning is the process of determining _______- range _________ requirements

Blank 1: short Blank 2: capacity

A series of time intervals during which order changes to the master production schedule are allowed are known as _________ __________.

Blank 1: time Blank 2: fences

Closed-loop MRP systems evaluate a proposed material plan relative to available capacity. If a proposed plan is not feasible, it must be revised. The evaluation is referred to as what?

Capacity requirements planning

_____________-_____________ MRP is another name for MRP II, into which _____________ loops have been incorporated.

Closed-loop Feedback

What is the term for the sum of the lead times that are required from start to finish of a product's production process?

Cumulative lead time

_____________ _____________ _____________ extends MRP to the entire supply chain.

Distribution Resource Planning

What is a method used for planning orders in a supply chain?

Distribution resource planning

ERP has expanded beyond manufacturing into what role?

Enterprise applications integration

True or false: Safety stock mitigates possible delivery problems for dependent demand items.

False

Which of the following is the correct formula for net requirements?

Gross requirements - projected on-hand inventory

Which of the following are the key questions MRP is designed to answer?

How much is needed? When is it needed? What is needed?

Demand for finished goods is considered _____________ demand. The demand for components and raw materials derived from this is known as _____________ demand.

Independent Dependent

For dependent-demand items with variable demand, which statement is true about lot sizing?

Lot-for-lot ordering is most appropriate.

What is the term for combining all occurrences of a component to the lowest level at which it appears on a bill of materials?

Low-level coding

Match the ERP software modules with their descriptions.

Marketing matches Choice, Supports lead generation, target marketing, direct mail, and sales. Supports lead generation, target marketing, direct mail, and sales. Purchasing matches Choice, Facilitates vendor selection, price negotiation, making purchasing decisions, and bill payment. Facilitates vendor selection, price negotiation, making purchasing decisions, and bill payment. Inventory Management matches Choice, Identifies inventory requirements, inventory availability, replenishment rules, and inventory tracking. Identifies inventory requirements, inventory availability, replenishment rules, and inventory tracking. Distribution matches Choice, Contains information on third-party shippers, shipping and delivery schedules, delivery tracking. Contains information on third-party shippers, shipping and delivery schedules, delivery tracking. Sales matches Choice, Information on orders, invoices, order tracking, and shipping. Information on orders, invoices, order tracking, and shipping. Supply Chain Management matches Choice, Facilitates supplier and customer management, supply chain visibility, and event management. Facilitates supplier and customer management, supply chain visibility, and event management. Customer Relationship Management matches Choice, Contact information, buying behavior, shipping preferences, contracts, payment terms, and credit history. Contact information, buying behavior, shipping preferences, contracts, payment terms, and credit history.

MRP in services usually involves what?

Material in service package

Which of the following is the goal in inventory management for both dependent and independent demand?

Minimize the sum of ordering/setup and holding cost.

The regenerative system updates MRP records _____________. Net-change systems update MRP records _____________.

Periodically Continuously

A _____________ _____________ _____________ is a visual depiction of the requirements on a bill of materials.

Product structure tree

What term describes how systems might react to changes?

System nervousness

Which of the following statements about inventory records is not true?

They are automatically updated by the MRP system during planning.

MRP is applicable to services as well as to manufacturing.

True

When will the economic order quantity result in an appropriate lot size for dependent-demand items?

When demand is uniform, use EOQ.

Low-level coding restructures_____________of materials so that all occurrences of a component occur at the lowest level that component occurs.

bill

A computerized system designed to connect all parts of a business organization as well as a part of its supply chain to a single database for the purpose of information sharing is known as _____.

enterprise resource planning (ERP)

MRP is a methodology that translates ________ requirements for end items into time-phased requirements for subassemblies, parts, and raw materials

master schedule

MRP is a methodology that translates ________ requirements for end items into time-phased requirements for subassemblies, parts, and raw materials.

master schedule

The bill of materials, an input for MRP, lists all assemblies, subassemblies, parts, and raw materials needed to produce __________.

one unit of a finished product

In MRP, ______ are the quantities expected to be received by the beginning of the period in which it is showed.

planned-order receipts

In MRP, _________ are the planned amounts to order in each time period.

planned-order releases

In MRP, _________ is the expected amount of on-hand inventory at the beginning of a period.

projected on hand

In managing inventory of lower-level components, what is used to offset the risk caused by variable lead times?

safety time

In MRP, __________ ____________are open orders scheduled to arrive at a specific point in the future.

scheduled receipts

Inventory records are one of the three primary inputs in MRP. It includes information on the status of each item by time period, called

time buckets

MRP processing takes end item requirements specified by the master schedule and explodes them into __________ for assemblies, parts, and raw materials using the bill of materials offset by lead times.

time-phased requirements