Question 1

ERP began in manufacturing organizations but has spread into service organizations.

Accepted Answer

A) True 
 B)False  True

Question 2

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

Accepted Answer

A) True 
 B)False  False

Question 3

MRP II did not replace or improve the basic MRP.

Accepted Answer

A) True 
 B)False  True

Question 4

Given the following information, develop a material requirements plan that will lead to 400 units of product P being available at the beginning of week 7.

Accepted Answer

\[\begin{array}{l}
\text { Planned Order

Question 5

Which of the following is absolutely necessary for successful implementation and operation of MRP?
(I) accurate inventory records
(II) accurate demand forecasts
(III) accurate holding and backordering costs
(IV) accurate bills of materials

Accepted Answer

A)  I, II, and IV only 
B)  I, III, and IV only 
C)  I, II, and III only 
D)  I and II only 
E)  I, II, III, and IV 
A)  I, II, and IV only 
B)  I, III, and IV only 
C)  I, II, and III only 
D)  I and II only 
E)  I, II, III, and IV

Question 6

Safety time is sometimes used in MRP rather than safety stock quantities.

Accepted Answer

A) True 
 B)False

Question 7

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

Accepted Answer

A) True 
 B)False

Question 8

ERP's primary value comes from applications:

Accepted Answer

A)  deployment. 
B)  development. 
C)  interfaces. 
D)  integration. 
E)  networking. 
A)  deployment. 
B)  development. 
C)  interfaces. 
D)  integration. 
E)  networking.

Question 9

An MRP system whose records are updated continuously is referred to as a(n):

Accepted Answer

A)  regenerative system. 
B)  batch-type system. 
C)  Plossl-Wright system. 
D)  net-change system. 
E)  gross-change system. 
A)  regenerative system. 
B)  batch-type system. 
C)  Plossl-Wright system. 
D)  net-change system. 
E)  gross-change system.

Question 10

Project management approaches can help in a conversion to an ERP system.

Accepted Answer

A) True 
 B)False

Question 11

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

Accepted Answer

A)  pegging 
B)  planned order release 
C)  net-change 
D)  regenerative 
E)  exception report 
A)  pegging 
B)  planned order release 
C)  net-change 
D)  regenerative 
E)  exception report

Question 12

Which of these products would be most likely to have dependent demand?

Accepted Answer

A)  refrigerators 
B)  automobile engines 
C)  televisions 
D)  brownies 
E)  automobiles 
A)  refrigerators 
B)  automobile engines 
C)  televisions 
D)  brownies 
E)  automobiles

Question 13

Which of the following is a direct input into capacity requirements planning?
(I) the master production schedule
(II) routing information
(III) current shop loads
(IV) planned-order releases

Accepted Answer

A)  II, III, and IV only 
B)  I, II, and IV only 
C)  I, III, and IV only 
D)  I and II only 
E)  I, II, III, and IV 
A)  II, III, and IV only 
B)  I, II, and IV only 
C)  I, III, and IV only 
D)  I and II only 
E)  I, II, III, and IV

Question 14

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods.

Accepted Answer

A) True 
 B)False

Question 15

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

Accepted Answer

A) True 
 B)False

Question 16

An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:

Accepted Answer

A)  material requirements planning. 
B)  capacity requirements planning. 
C)  manufacturing resources planning. 
D)  just-in-time planning. 
E)  multifunctional relationships planning. 
A)  material requirements planning. 
B)  capacity requirements planning. 
C)  manufacturing resources planning. 
D)  just-in-time planning. 
E)  multifunctional relationships planning.

Question 17

Which statement concerning MRP II is false?

Accepted Answer

A)  It is basically a computerized system. 
B)  It can handle complex planning and scheduling quickly. 
C)  It involves other functional areas in the production planning process. 
D)  It involves capacity planning. 
E)  It produces a production plan which includes all resources required. 
A)  It is basically a computerized system. 
B)  It can handle complex planning and scheduling quickly. 
C)  It involves other functional areas in the production planning process. 
D)  It involves capacity planning. 
E)  It produces a production plan which includes all resources required.

Question 18

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material.

Accepted Answer

A) True 
 B)False

Question 19

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency.

Accepted Answer

A)  MRP 
B)  ERP 
C)  CRP 
D)  MRPII 
E)  DRP 
A)  MRP 
B)  ERP 
C)  CRP 
D)  MRPII 
E)  DRP

Question 20

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: $$\begin{array} { c l l } 
\text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \
\hline \text { Deluxe Easter Basket } & 1 \text { week } & 10 \
\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \
\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50
\end{array}$$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge. How many dark chocolate eggs should be ordered?

Accepted Answer

A)  310 
B)  450 
C)  500 
D)  550 
E)  600 
A)  310 
B)  450 
C)  500 
D)  550 
E)  600

Exam 12: MRP and ERP

ERP began in manufacturing organizations but has spread into service organizations.

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

MRP II did not replace or improve the basic MRP.

Given the following information, develop a material requirements plan that will lead to 400 units of product P being available at the beginning of week 7.

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) accurate demand forecasts (III) accurate holding and backordering costs (IV) accurate bills of materials

Safety time is sometimes used in MRP rather than safety stock quantities.

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

ERP's primary value comes from applications:

An MRP system whose records are updated continuously is referred to as a(n):

Project management approaches can help in a conversion to an ERP system.

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

Which of these products would be most likely to have dependent demand?

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods.

The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:

Which statement concerning MRP II is false?

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material.

In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Location Planning and Analysis

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

Aggregate Planning and Master Scheduling

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters