Strategic Supply Chain MNGT CH. 6 T/F
Distribution requirements plan (DRP) operates in a dependent demand situation.
false
ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.
false
In general, single integrator ERP solutions are better suited to more intricate workplaces.
false
The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy.
false
A level production strategy works well for make-to-stock manufacturing firms, which typically emphasize immediate delivery of off-the-shelf, standard goods at relatively low prices.
true
An ERP system is generally a multi-module application software for managing an enterprise's internal functional activities, as well as its suppliers and customers.
true
ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.
true
Implementing a best-of-breed solution may cause firms to link databases from multiple software applications of different vendors.
true
A Master Production Schedule is an engineering document that shows an inclusive listing of all component parts and subassemblies making up the end item.
false
An MRP system has a subassembly with a lot size of 500 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 500 units.
false
Lead Capacity Strategy is a reactive approach that adjusts its capacity in response to demand.
false
MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.
false
The best-of-breed solution picks all the desired applications from a single vendor for the ERP system.
false
The chase production strategy works well when highly skilled workers are needed, especially in a tight labor market.
false
The legacy MRP system was programmed to coordinate with other functional areas in the firm.
false
When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.
false
ERP systems were designed to coordinate the information requirements for purchasing, planning, scheduling and distribution of an organization operating in a complex multi-unit global environment.
true
Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.
true
Legacy MRP systems typically utilized multiple software packages and databases which caused the same information to be stored in multiple locations.
true
Legacy systems were designed to perform a very specific operational function.
true
System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.
true
The mixed strategy uses overtime and subcontracting to cope with the high demand periods.
true
Two reasons ERP implementations have been known to fail include: lack of top management commitment and lack of communication between the firm and its ERP software provider.
true
