Question 1

Which of the following is FALSE concerning enterprise resource planning (ERP)?

Accepted Answer

A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement. 
D)  It provides and accesses information in a real-time environment. 
E)  ERP software promises reduced transaction costs. 
A)  It attempts to automate and integrate the majority of business processes. 
B)  It shares common data and practices across the enterprise. 
C)  It is inexpensive to implement. 
D)  It provides and accesses information in a real-time environment. 
E)  ERP software promises reduced transaction costs.

Question 2

In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is TRUE about pegging?

Accepted Answer

A)  It traces downward in the BOM from the parent item to the component. 
B)  It causes system nervousness. 
C)  It allows a segment of the master schedule to be designated as "not to be scheduled." 
D)  It allows the production planner to determine the cause for the requirement and make a judgment about the necessity for a change in the schedule. 
E)  It is an excellent tool for make-to-order environments. 
A)  It traces downward in the BOM from the parent item to the component. 
B)  It causes system nervousness. 
C)  It allows a segment of the master schedule to be designated as "not to be scheduled." 
D)  It allows the production planner to determine the cause for the requirement and make a judgment about the necessity for a change in the schedule. 
E)  It is an excellent tool for make-to-order environments.

Question 4

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?

Accepted Answer

A)  The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. 
B)  The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. 
C)  The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. 
D)  The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. 
E)  All of these are true. 
A)  The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. 
B)  The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. 
C)  The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. 
D)  The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. 
E)  All of these are true.

Question 5

Consider the following requirements for an office chair product.   The company has a setup cost of $100, a holding cost per week of $5, beginning inventory of 100, and lead time of 1 week. If a lot-for-lot policy is used, what will be the total setup cost for this six-week inventory period?

Accepted Answer

A)  $100 
B)  $200 
C)  $300 
D)  $400 
E)  $500 
A)  $100 
B)  $200 
C)  $300 
D)  $400 
E)  $500

Question 6

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

Accepted Answer

A)  The material plan must meet both schedule requirements and facility capabilities. 
B)  The plan must be executed as designed. 
C)  Inventory investment must be minimized. 
D)  Excellent record integrity must be maintained. 
E)  The process must adhere to stringent quality control standards. 
A)  The material plan must meet both schedule requirements and facility capabilities. 
B)  The plan must be executed as designed. 
C)  Inventory investment must be minimized. 
D)  Excellent record integrity must be maintained. 
E)  The process must adhere to stringent quality control standards.

Question 7

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

Accepted Answer

Enterprise

Question 8

Lead times, inventory availability, and bills of material are among the five things operations managers must know for effective use of dependent inventory models.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT one of the five components of DDMRP?

Accepted Answer

A)  Strategically Position Safety Stock 
B)  Establish Safety Stock Levels 
C)  Monitor Safety Stock Levels 
D)  Track and Adjust to Supply Changes 
E)  Execute Collaboratively Internally and Externally 
A)  Strategically Position Safety Stock 
B)  Establish Safety Stock Levels 
C)  Monitor Safety Stock Levels 
D)  Track and Adjust to Supply Changes 
E)  Execute Collaboratively Internally and Externally

Question 10

The large parts of a playground A-frame (from which to hang a swing or glider) consist of a ridge pole, four legs, and two side braces. Each leg fastens to the ridge with one fastener set. Each side brace requires two fastener sets for attachment to the legs.
There is one order outstanding, to make 180 frame kits. There are 500 legs and 20 ridge poles in inventory. There are no other large items in inventory, and no scheduled receipts.
(a) Draw the product structure tree.
(b) Calculate the net requirements to fulfill the outstanding order.

Accepted Answer

The answer of The large parts of a playground A-frame...

Question 11

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Accepted Answer

The answer of ________ are a way of allowing a...

Question 12

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

Accepted Answer

A) True 
 B)False

Question 13

What is one of the tools that is particularly useful in reducing system nervousness in an MRP system?

Accepted Answer

A)  modular bills 
B)  time phasing 
C)  time fences 
D)  lot sizing 
E)  closed loop system 
A)  modular bills 
B)  time phasing 
C)  time fences 
D)  lot sizing 
E)  closed loop system

Question 14

Distribution resource planning (DRP) is:

Accepted Answer

A)  a transportation plan to ship materials to warehouses. 
B)  a time-phased stock replenishment plan for all levels of a distribution network. 
C)  a shipping plan from a central warehouse to retail warehouses. 
D)  material requirements planning with a feedback loop from distribution centers. 
E)  a material requirements planning package used exclusively by warehouses. 
A)  a transportation plan to ship materials to warehouses. 
B)  a time-phased stock replenishment plan for all levels of a distribution network. 
C)  a shipping plan from a central warehouse to retail warehouses. 
D)  material requirements planning with a feedback loop from distribution centers. 
E)  a material requirements planning package used exclusively by warehouses.

Question 15

MRP is generally applicable to items with independent demand.

Accepted Answer

A) True 
 B)False

Question 16

Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.

Accepted Answer

A) True 
 B)False

Question 17

Bills of material organized by major subassemblies or by product options are called ________.

Accepted Answer

The answer of Bills of material organized by major subassemblies...

Question 18

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Accepted Answer

The answer of ________ is a lot-sizing technique that generates...

Question 19

An order for 110 units of Product A has been made. There are currently 60 units of Product A on hand. Each A requires 2 units of Part B. There are 30 units of B available.
(a) Calculate the net requirements for A.
(b) Calculate the gross requirements for B.
(c) Calculate the net requirements for B.

Accepted Answer

(a) 110 - 60 = 50; (

Question 20

Which of the following statements regarding lot-sizing is TRUE?

Accepted Answer

A)  EOQ principles should be followed whenever economical. 
B)  Too much concern with lot-sizing results in false accuracy. 
C)  Lot-for-lot cannot be modified for scrap allowance or process constraints. 
D)  The Wagner-Whitin algorithm simplifies lot size calculations. 
E)  All of these are true. 
A)  EOQ principles should be followed whenever economical. 
B)  Too much concern with lot-sizing results in false accuracy. 
C)  Lot-for-lot cannot be modified for scrap allowance or process constraints. 
D)  The Wagner-Whitin algorithm simplifies lot size calculations. 
E)  All of these are true.

Exam 13: Material Requirements Planning Mrp and Erp

Which of the following is FALSE concerning enterprise resource planning (ERP)?

In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

Which of the following statements is TRUE about pegging?

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?

Consider the following requirements for an office chair product. The company has a setup cost of $100, a holding cost per week of $5, beginning inventory of 100, and lead time of 1 week. If a lot-for-lot policy is used, what will be the total setup cost for this six-week inventory period?

Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation?

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

Lead times, inventory availability, and bills of material are among the five things operations managers must know for effective use of dependent inventory models.

Which of the following is NOT one of the five components of DDMRP?

________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

What is one of the tools that is particularly useful in reducing system nervousness in an MRP system?

Distribution resource planning (DRP) is:

MRP is generally applicable to items with independent demand.

Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation.

Bills of material organized by major subassemblies or by product options are called ________.

________ is a lot-sizing technique that generates exactly what is required to meet the plan.

An order for 110 units of Product A has been made. There are currently 60 units of Product A on hand. Each A requires 2 units of Part B. There are 30 units of B available. (a) Calculate the net requirements for A. (b) Calculate the gross requirements for B. (c) Calculate the net requirements for B.

Which of the following statements regarding lot-sizing is TRUE?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Location Strategies

Human Resources, Job Design, and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Applying Analytics to Big Data in Operations Management

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