OM CH. 14 RESOURCE PLANNING

Given the following data, how many kitchen sinks would be ordered to satisfy gross requirements? Item: Kitchen SinkLead Time = 2 week Lot size rule: FOQ = 25Beginning Inventory = 2Period1234Gross Requirements0056 5 6 4 8 9

9, you need a total of 11 sinks and beginning inventory is 2

_______________ MRP is an MRP system that includes production planning, master production scheduling, and capacity requirements planning. Fully-integrated Closed-loop Open-loop Wide-range Enterprise

Closed-loop

Which of the following is not a major supplier of ERP systems? SAP AG PeopleSoft Oracle Infor.com IBM

IBM

Which of the following is not an intangible benefit of ERP? improved customer response better integration between systems global sharing of information increased flexibility improved on-time delivery performance

improved on-time delivery performance

MRP develops a ____________ that shows future demand, supply and inventories by time period. DSI report snapshot forecast requirements plan material movements schedule time-phased schedule

time-phased schedule

The authorized MPS is a statement of ______________________________. manufacturing orders that have been authorized for release to the shop floor which workers are authorized to work on which machines what the company expects to build and when it expects to build it authorized payments to vendors where different end products are authorized to be manufactured

what the company expects to build and when it expects to build it

Using the following data, what is the total ordering cost to meet the gross requirements? Item: Kitchen Sink, Lead Time = 1 week, Lot size rule: FOQ = 5, Beginning Inventory = 2, Gross Requirements 0/2/3/1 Order costs = $25/order $0 $25 $50 $75 $100

$25, Order is placed in period 2; one order costs $25

The three types of lot size rules are F&Q, L$L, P@Q SAP, L4L, POQ FOQ, L4L, POQ ASP, L4L, MRP FOQ, ADP, POQ

FOQ, L4L, POQ

Which of the following is an objective of MRP? Keep priorities updated and valid. Keep track of material movements on the shop floor. Provide information for expediting orders. Allocate scarce parts to products. Provide information for activity based costing.

Keep priorities updated and valid.

Which of the following is not true for planned orders? They are necessary only for finished products. They result when there is not enough inventory to cover the gross requirements. The quantity is calculated using the lot-sizing rule. The lead time is required to determine when the order should be placed. The inventory records file is updated for the order.

They are necessary only for finished products.

Which of the following is not true concerning replenishment orders? They are generated when there is not enough inventory. MRP specifies when to place the order. The order may be for material from a supplier. They are orders for the final product. The order may be for material from the manufacturing floor.

They are orders for the final product.

Companies use ____________ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible. capacity management closed-loop requirements planning cut requirements planning capacity resources planning capacity requirements planning

capacity requirements planning

Which of the following is not a direct input to capacity requirements planning? planned shop orders open shop orders setup time and run time per unit for shop orders current inventory levels quantity for shop orders

current inventory levels

What does ERP stand for? educational resources planning enterprise resource planning enterprise reliability production end routing procedure easy resource planning

enterprise resource planning

Independent demand is the demand for ________________________________. finished products subassemblies parts raw materials components

finished products

Which of the following is not a tangible benefit of ERP? reduction in inventory global sharing of information improved order management increased revenue and profits improved on-time delivery performance

global sharing of information

In MRP, the starting points for each part and material needed to accomplish the master production schedule are the ___________________. net requirements gross requirements planned releases scheduled receipts planned receipts

gross requirements

Total cost of ownership (TOC) is defined by all except? software cost internal human resource costs services cost 3 years of maintenance cost

internal human resource costs

The ____________ is (are) checked for the materials on hand and those that need to be procured. master production schedule bill of material inventory records material inventories promised deliveries

inventory records

The most critical factors for successful EPR implementation are ______ and _________ ______. leadership, top management commitment leadership, technological transfer management management, technological transfer management funding, top management commitment leadership, detailed technical specifications

leadership, top management commitment

If setup costs are essentially zero (negligible when compared to carrying costs), which approach should be used for lot sizing? lot for lot fixed order quantity period order quantity with POQ = 6 periods period order quantity with POQ = 2 periods period order quantity with POQ = 4 periods

lot for lot

The quantity of the replenishment order is based on the __________________________. capacity available size of the item number of workers available inventory space available lot sizing rule used

lot sizing rule used

The ____________ details the company's planned products, quantity, and the schedule used by marketing when promising deliveries. master production schedule bill of material inventory records material product sales promised deliveries

master production schedule

What information system enables companies to have the right material in the right amounts available at the right time? manufacturing resources planning multifunctional requirements planning material requirements planning material relationships planning manufacturing requirements planning

material requirements planning

For capacity requirements planning, loads for critical work centers are calculated based on ___________. open external supplier orders and planned external supplier orders gross requirements for the end product open shop orders and planned shop orders safety stock the sum of ordering and carrying costs

open shop orders and planned shop orders

For every scheduled receipt in an MRP table, there is also in the organization a(n) __________________. shop floor order order that has been placed but not yet been received planned order period order dispatch list

order that has been placed but not yet been received

A visual depiction of the subassemblies and components that are needed to produce a finished product is called a(n) ____________________________________. assembly time chart product structure tree peg product chart blueprint

product structure tree

The availability of ERP supported data can increase ___________ as well as ___________. productivity, customer costs productivity, invoicing costs material costs, customer satisfaction material costs, human resource satisfaction productivity, customer satisfaction

productivity, customer satisfaction

ERP systems provide _____ and _____ benefits. tangible, HR intangible, marketing marketing, operation tangible, intangible CEO, CFO

tangible, intangible

The cumulative lead time is __________________________________________________________. the sum of the lead times for all the components the sum of the lead time and the safety time the number of time buckets used in the MRP the longest route in terms of time from the low level items to the end item in the product structure tree lead time less the safety time

the longest route in terms of time from the low level items to the end item in the product structure tree