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Which of the following is described as an information system connecting all the fundamental areas and operations of an organization via common software infrastructure and database? a) Distribution Requirements Planning System b) Enterprise Requirement Planning System c) Resource Requirements Planning System d) Advanced Planning and Scheduling System

b) Enterprise Requirement Planning System

What is the term used to relate the requirements for a component part back to its parent item? It can be thought of as determining where a component item is used. a) Time bucket b) Pegging c) Planning factor d) Net Requirement e) Lot size

b) Pegging

Supply Chain Planning is the element of Supply Chain Management responsible for determining how best to satisfy the requirements created by the Demand Plan. True or false

True

Which of the following is a Long-Range supply chain plan? a) Aggregate Production Plan b) Materials Requirements Plan c) Capacity Requirements Plan d) Master Capacity Plan

a) Aggregate Production Plan

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed (or hybrid) production strategy. a) True b) False

a) True

Companies establish Time Fences in order to? a) Limit the amount of time production planners have to create orders b) Minimize the impact of changes and costly disruptions c) Measure how long it takes to produce products

b) Minimize the impact of changes and costly disruptions

Which supply chain planning process is defined as hierarchical planning process that translates annual business plans, marketing plans, and demand forecasts into a production? a) Master Production Scheduling (MPS) b) Sales and Operations Planning (S&OP) c) Aggregate Production Planning (APP) d) Material Requirements Planning (MRP)

c) Aggregate Production Planning (APP)

Sales & Operations Planning (S&OP) is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage. a) True b) False

a) True

The Mixed (or Hybrid) Production Strategy sets a baseline production rate based on a stable core workforce, and then uses other short-term means, such as overtime, subcontracting and part-time labor to manage short-term fluctuations in demand. a) True b) False

a) True

The key disadvantages of the Material Requirements Planning (MRP) system include: loss of visibility and the fact that MRP ignores capacity and shop floor conditions. a) True b) False

a) True

Which production strategy would you use if the required production skill level is low, the training requirements are low, and the cost of hiring people and terminating them is low? a) Level Production Strategy b) Chase Production Strategy c) Hybrid Production Strategy

b) Chase Production Strategy

Which of the following terms used in MRP represents the parts demanded by a parent? a) Scheduled receipt b) Component c) Gross requirement d) Net requirement

b) Component

To handle a fluctuating demand pattern the Level Production Strategy adjusts the production rate and capacity to exactly match demand. a) True b) False

b) False

Which of the following is NOT one of the advantages of Material Requirements Planning? a) Facilitates lower inventory levels b) Helps to optimize the use of production resources and lowers costs c) Ignores capacity. Focuses on what is needed and when, regardless of capacity d) On time availability of the right materials required for production

c) Ignores capacity. Focuses on what is needed and when, regardless of capacity

Companies establish Time Fences in order to? a) Limit the amount of time production planners have to create orders b) Measure how long it takes to produce products c) Minimize the impact of changes and costly disruptions

c) Minimize the impact of changes and costly disruptions

Material Requirements Planning (MRP) requires all of the following EXCEPT? a) The independent demand information, i.e., finished product forecast b) The inventory status of final product and each of the components and materials c) The Rough-cut Capacity Planning information

c) The Rough-cut Capacity Planning information

The hierarchical planning process that translates the annual business plan, marketing plans, and demand forecasts into a production plan for a product family in a plant or facility is known as? a) Master Production Schedule (MPS) b) Materials Requirements Planning (MRP) c) Rough-cut Capacity Plan (RCCP) d) Aggregate Production Plan (APP) e) Distribution Requirements Plan (DRP)

d) Aggregate Production Plan (APP)

The process of converting a parent item's planned order releases into component gross requirements, is called? a) Pegging b) Bill of Materials c) Lot Sizing d) MRP Explosion

d) MRP Explosion

A company that is adjusting the production rate and capacity to exactly match demand by increasing and decreasing labor, materials, or necessary resources as needed, is using which basic production strategy? a) Chase Production b) Minimal Production c) Full Capacity Production d) Level Production e) Hybrid Production

a) Chase Production

Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a? a) Single Integrator Solution b) Premier Application Solution c) Best-of-Breed Solution d) Elite Integrator Solution

a) Single Integrator Solution

Enterprise Resource Planning (ERP) Systems allow supply chain members to share information so that scarce resources can be fully utilized to meet demand, while also minimizing supply chain inventories. a) True b) False

a) True

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? a) Projected On-hand Inventory b) Scheduled Receipt c) Time Bucket d) Net Requirements

b) Scheduled Receipt

The Master Production Schedule represents? a) The maximum amount the company can produce in any time period b) What the company plans to produce c) What the customer wants d) The component parts and materials required to manufacture a product

b) What the company plans to produce

Material Requirements Planning (MRP) is used to? a) Look long term and determine if you need a bigger factory b) Identify if you need to purchase new equipment to make your product c) Determine what materials you need to make the finished product and when to order them d) Determine the exact end items (i.e., finished products) to be produced in a specific time frame

c) Determine what materials you need to make the finished product and when to order them

Which term used in Material Requirements Planning is defined as the number/quantity of each component or material needed to produce a single unit of the parent item? a) Lot size b) Safety Stock c) Net Requirements d) Planning Factor

d) Planning Factor