ISDS 3115 Chapter 14 Concept Questions

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Which of the following is NOT one of the benefits in MRP?

A) improved utilization of facilities and labor
B) better response to customer orders as the result of improved adherence to schedules
C) increased inventory levels
D) faster response to market changes

C) increased inventory levels

Which of the following statements is NOT true about MRP?

A) MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements
B) MRP is an independent demand technique used in a production environment
C) MRP has evolved as the basis for Enterprise Resource Planning
D) MRP provides a clean structure for dependent demand

B) MRP is an independent demand-based technique used in a production environment

What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders?

A) MRP
B) SCM
C) EIS
D) ERP

D) ERP

Which of the following statements is NOT true?

A) for any product for which a schedule can be established, different techniques could be used
B) less inventory frees up capital and floor space for other uses
C) demand for items is dependent when the relationship between the items can be determined
D) for any product, some components of that product are independent demand items

D) for any product, some components of that product are independent demand items

What is a list of quantities of components, ingredients, and materials required to make a product?

A) master production schedule
B) engineering change notice
C) bill-of-material
D) purchase order

C) bill-of-material

Which of the following pieces of information is NOT contained in a bill-of-material?

A) physical dimensions
B) raw material to be used
C) lead times
D) quantities of components

C) lead times

Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?"

A) pegging
B) time fence
C) freeze point
D) system nervousness

B) time fence

The operations manager has two important tools available to deal with MRP system nervousness. Those tools are:

A) time fences and pegging
B) pseudo bills and kits
C) buckets with black flush
D) net and gross requirements

A) time fences and pegging

Which of the following tools means tracing upward in the BOM from the component to the parent item?

A) pegging
B) time fencing
C) system nervousness
D) bucketing

A) pegging

Which of the following is NOT true about MRP limitations?

A) MRP does not tell you that a job needs to be completed on a certain week or day
B) MRP is an excellent tool for product-focused and repetitive facilities, but it has limitations in process (make-to-order) environments
C) MRP does not do detailed scheduling
D) MRP is considered an infinite scheduling technique

A) MRP does not tell you that a job needs to be completed on a certain week or day

What is the lot-sizing technique that generates exactly what was required to meet the plan?

A) Wagner-Whitin
B) periodic order quantity
C) lot-for-lot
D) economic order quantity (EOQ)

C) lot-for-lot

Which of the following lot-sizing techniques is likely to prove the most complex to use?

A) economic order quantity (EOQ)
B) periodic order quantity (POQ)
C) lot-for-lot
D) Wagner-Whitin

D) Wagner-Whitin

What is a lot-sizing technique that orders the quantity needed during a predetermined time between orders?

A) POQ
B) part time balancing
C) EOQ
D) Wagner-Whitin

A) POQ

Which of the following statements is NOT true about the EOQ?

A) The EOQ can be a reasonable lot-sizing technique when demand is relatively constant and independent
B) The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production schedule
C) The EOQ can be used as a lot-sizing technique for MRP systems
D) The EOQ is preferable when dependent demand exists

D) The EOQ is preferable when dependent demand exists

What provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times?

A) closed-loop MRP system
B) system nervousness
C) MRP II
D) lot sizing

A) closed-loop MRP system

What sends a lot to two different machines for the same operation?

A) operations splitting
B) lot splitting
C) pegging
D) overlapping

A) operations splitting

What is a report showing the resource requirements in a work center for all work currently assigned there, as well as all planned and expected orders?

A) load report
B) closed-loop report
C) MRP II report
D) pegging report

A) load report

What is the act of breaking up an order and running part of it ahead of schedule?

A) operations splitting
B) overlapping
C) pegging
D) lot splitting

D) lot splitting

What is a time-phased stock-replenishment plan for all levels of the supply chain?

A) BOM
B) MRP
C) DRP
D) MRP II

C) DRP

Which of the following statements is NOT true about DRP?

A) the goal of a DRP system is small and frequent replenishment within the bounds of economical ordering and shipping
B) Effective use of DRP requires an integrated information system to rapidly convey planned order releases from one level to the next.
C) The DRP procedure starts with the forecast at the supplier level
D) When dependent techniques are used in the supply​ chain, they are called distribution resource planning​ (DRP)

C) The DRP procedure starts with the forecast at the supplier level

A bill of materials for a menu item in a restaurant is also called a:

A) product specification
B) recipe
C) food bill
D) bill of ingredients

A) product specification

Which of the following statements about DRP is NOT true?

A) DRP procedures and logic are analogous to MRP
B) DRP stands for "distribution resource planning"
C) lead times are considered in DRP
D) DRP pushes inventory through the system

D) DRP pushes inventory through the system *it actually pulls

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders?

A) BOM
B) MRP
C) ERP
D) CIM

C) ERP

Which of the following is an advantage of ERP?

A) it is simple enough that companies have an easy time adjusting to it
B) data fields do not have to be defined identically across the entire enterprise
C) it is very inexpensive to purchase
D) it creates commonality of databases

D) it creates commonality of databases

Which of the following statements is NOT true regarding ERP?

A) ERP allows companies share a common database and business practices throughout the enterprise
B) ERP usually provides financial and human resource management information
C) the objective of an ERP system is to coordinate a firm’s whole business
D) ERP promises slow, but accurate, information

D) ERP promises slow, but accurate, information

Supply chain management systems in the grocery industry that tie sales to​ buying, to​ inventory, to​ logistics, and to production are called

A) grocery resource planning
B) efficient consumer response
C) distribution resources planning
D) enterprise resource planning

B) efficient consumer response

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