SCM Unit 2
Which of the following are requirements of MRP?
Accurate inventory records Integrity of file data Accurate master schedule
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
Which of the following are primary reports generated by the MRP system?
Changes to planned orders Order releases Planned orders
Customer Relationship Management ERP software modules
Contact information, buying behavior, shipping preferences, contracts, payment terms, and credit history.
Distribution ERP software modules
Contains information on third-party shippers, shipping and delivery schedules, delivery tracking.
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
Which of the following statements about dependent demand are true?
Dependent demand tends to be more intermittent than independent demand. 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.
What is a method used for planning orders in a supply chain?
Distribution resource planning
SCM ERP software modules
Facilitates supplier and customer management, supply chain visibility, and event management.
Purchasing ERP software modules
Facilitates vendor selection, price negotiation, making purchasing decisions, and bill payment.
Which of the following statements about lot sizing are true?
Fixed-period ordering provides coverage for several periods at one time. Lot-for-lot ordering requires a new setup for each order. Lot-for-lot ordering does not tend to take advantage of economies of fixed order size.
Which of the following is the correct formula for net requirements?
Gross requirements - projected on-hand inventory
Inventory MGT ERP software modules
Identifies inventory requirements, inventory availability, replenishment rules, and inventory tracking.
Which of the following are advantages of the regenerative method of updating MRP records?
If changes cancel each other out, the system is not changed repeatedly "for nothing." The MRP system is relatively stable because it is not constantly being changed.
Sales ERP software modules
Information on orders, invoices, order tracking, and shipping. Information on orders, invoices, order tracking, and shipping.
Which of the following are requirements of MRP?
Integrity of file data Accurate master schedule Accurate inventory records
Which of the following are disadvantages of ERP?
It can be very expensive to implement. It may require extended use of consultants. There are a number of associated hidden costs. It may take time after the conversion to return to previous levels of productivity. It can be expensive to convert data from legacy systems.
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. It is an Iterative process
Which of the following statements about the master schedule are true?
It must be at least as long as the cumulative lead time. It does not have a predetermined or fixed time horizon.
Which of the following statements about ERP are true?
It tries to facilitate information sharing across different areas of the organization. It is an evolution of MRP.
Which of the following statements about capacity requirements planning is/are true?
Key outputs include load reports for each work center. Inputs include routing information. Inputs include the current shop load.
For dependent-demand items with variable demand, which statement is true about lot sizing?
Lot-for-lot ordering is most appropriate.
Which of the following statements about lot sizing are true?
Lot-for-lot ordering requires a new setup for each order. Fixed-period ordering provides coverage for several periods at one time. Lot-for-lot ordering does not tend to take advantage of economies of fixed order size.
In response to the need to incorporate marketing, finance and other functional areas' feedback into the material planning process, what system was developed?
MRP II
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.
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 statements about MRP processing are true?
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. Projected on-hand inventory = scheduled receipts + available inventory from end of previous period.
Which of the following are secondary reports generated by the MRP system?
Performance-control reports Planning reports Exception reports
Which of the following are options for dealing with insufficient capacity?
Prioritize orders, delaying some. Shifting orders to adjacent periods. Schedule overtime.
Which of the following are potential risks associated with MRP?
Products being produced differently from the bill of materials Inaccurate forecasts Assumption of constant lead time
Marketing ERP software modules
Supports lead generation, target marketing, direct mail, and sales.
Which of the following are advantages of ERP?
The integration of financial data. Standardizing HR information. It increases efficiency of operations. It standardizes financial information across the company. It standardizes manufacturing processes.
Which of the following statements about inventory records is NOT TRUE ?
They are automatically updated by the MRP system during planning.
Which of the following statements about time fences for capacity requirements planning is/are true?
They are used to prevent system nervousness. The closest time fence is the most restricted.
Which of the following statements is TRUE of inventory records?
They include info about lot sizing and suppliers They include info on scheduled receipts Info is stored for each time bucket
When will the economic order quantity result in an appropriate lot size for dependent-demand items?
When demand is uniform, use EOQ.
Which of the following are the key questions MRP is designed to answer?
When is it needed? What is needed? How much is needed?
What advantage of MRP eliminates the need to collect detailed usage information on the production floor?
backflushing
Low-level coding restructures the __________ of materials so that all occurrences of a component occur at the lowest level that component occurs.
bill
_________-_________ MRP is another name for MRP II, into which __________ loops have been incorporated
close loop; feedback
Net-change systems update MRP records ________________
continuously
Demand for components and raw materials derived from this is known as
dependent demand
_______ _______ ________ extends MRP to the entire supply chain
distribution resource planning
ERP has expanded beyond manufacturing into what role?
enterprise applications integration
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 processing takes end item requirements specified by the master schedule and ____________ them into time-phased requirements for assemblies, parts, and raw materials using the bill of materials offset by lead times.
explodes
True or false: ERP is a tool for manufacturing companies, not for services.
false
True or false: Safety stock mitigates possible delivery problems for dependent demand items.
false
In MRP, __________ __________ are the total expected demand for an item in a time period.
gross requirements
Demand for finished goods is considered
independent demand
In capacity requirements planning, _______ _______ are reports that compare known and expected future capacity requirements with projected capacity availability.
load reports
In capacity requirements planning, __________ __________ are reports that compare known and expected future capacity requirements with projected capacity availability.
load reports
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
MRP is a methodology that translates ________ ___________ requirements for end items into time-phased requirements for subassemblies, parts, and raw materials.
master schedule
In MRP, _________ __________ are the actual amount needed in a time period
net requirements
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
The regenerative system updates MRP records ______________
periodically
In MRP, ______ are the quantities expected to be received by the beginning of the period in which it is showed. Multiple choice question.
planned-order receipts
In MRP, _________ are the planned amounts to order in each time period.
planned-order releases
A _____ _______ _______ is a visual depiction of the requirements of a bill of materials
product structure tree
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
Capacity requirements planning is the process of determining _________ -range ____________ requirements
short; capacity
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
A series of time intervals during which order changes to the master production schedule are allowed are known as _______ _______
time fences
True or false: MRP is applicable to services as well as to manufacturing.
true
Which of the following are advantages of MRP?
Ability to evaluate capacity requirements Low levels of in-process inventory A means to allocate production time
