All of the following are advantages of enterprise resource planning (ERP) except it

All of the following are advantages of enterprise resource planning (ERP) except it

a. creates commonality of databases
b. increases communications and collaboration worldwide
c. helps integrate multiple sites and business units
d. requires major changes in the company and its processes to implement
e. can provide a strategic advantage over competitors



Answer: D

Which of the following regarding enterprise resource planning (ERP) is true?

Which of the following regarding enterprise resource planning (ERP) is true?

a. It involves an ongoing process for implementation.
b. It can incorporate improved, reengineered "best processes."
c. It has a software database that is off-the-shelf coding.
d. ERP systems usually include MRP, financial and human resource information.
e. All of the above are true.




Answer: E

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

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

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. All of the above are true.



Answer: C

Enterprise resource planning (ERP)

Enterprise resource planning (ERP)



a. has been made possible because of advances in hardware and software
b. uses client/server networks
c. creates commonality of databases
d. uses business application-programming interfaces (BAPI) to access their database
e. All of the above are true of ERP.




Answer: E

Enterprise resource planning (ERP)

Enterprise resource planning (ERP)

a. seldom requires software upgrade or enhancement
b. does not integrate well with functional areas other than operations
c. is inexpensive to implement
d. automates and integrates the majority of business processes
e. all of the above



Answer: D

By convention, the top level in a bill of material is

By convention, the top level in a bill of material is

a. level 0
b. level 1
c. level T
d. level 10
e. level 100



Answer: A

Distribution resource planning (DRP) is

Distribution resource planning (DRP) is

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 feedback loop from distribution centers
e. a material requirements planning package used exclusively by warehouses



Answer: B

Which of the following statements regarding MRP in services is true?

Which of the following statements regarding MRP in services is true?

a. MRP is for manufacturing only, and is not applicable to services.
b. MRP can be used in services, but only those that offer very limited customization.
c. MRP does not work in services because there is no dependent demand.
d. Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
e. None of the above is true.




Answer: D

The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is

The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is

a. MRP II
b. enterprise resource planning
c. the master production schedule
d. closed-loop MRP
e. not yet technically possible




Answer: B

MRP II is accurately described as

MRP II is accurately described as

a. MRP software designed for services
b. MRP with a new set of computer programs that execute on microcomputers
c. MRP augmented by other resource variables
d. an enhancement of MRP that plans for all levels of the supply chain
e. a new generation of MRP software that extends MRP to planning and scheduling functions




Answer: C

If a load report (resource requirements profile) shows a work center scheduled beyond capacity

If a load report (resource requirements profile) shows a work center scheduled beyond capacity

a. the company must add capacity by enlarging the facility
b. the company must add capacity by such tactics as overtime and subcontracting
c. the work center's load may be smoothed by such tactics as operations splitting or lot splitting
d. the aggregate plan must be revised
e. the Wagner-Whitin algorithm should be used to rebalance the load




Answer: C

Capacity planning in closed-loop MRP

Capacity planning in closed-loop MRP

a. utilizes feedback about workload from each work center
b. may make use of resource requirements profiles (load reports)
c. may smooth work center loads with such tactics as overlapping and lot splitting
d. does not add capacity, but rather seeks effective use of existing capacity
e. All of the above are true.





Answer: E

A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique.

A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the __________ technique.

a. Wagner-Whitin
b. economic part period
c. supermarket
d. gross material requirements
e. resource requirements profile




Answer: C

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

Which of the following statements regarding lot-sizing is 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 the above are true.




Answer: B

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP is

a. .005
b. 60
c. 72
d. 100
e. 200




Answer: E

For the lot-sizing technique known as lot-for-lot to be appropriate

For the lot-sizing technique known as lot-for-lot to be appropriate

a. future demand should be known for several weeks
b. setup cost should be relatively small
c. annual volume should be rather low
d. item unit cost should be relatively small
e. the independent demand rate should be very stable




Answer: B

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

a. lot-for-lot
b. EOQ
c. part-period balancing
d. the Wagner-Whitin algorithm
e. All of the above are appropriate for the situation.




Answer: A

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

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

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 the above are true.



Answer: B

Which of the following lot-sizing techniques results in the lowest holding costs?

Which of the following lot-sizing techniques results in the lowest holding costs?

a. lot-for-lot
b. EOQ
c. part-period balancing
d. Wagner-Whitin algorithm
e. the quantity discount model



Answer: A

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

a. FCS recognizes the finite nature of capacity while MRP does not.
b. FCS works in services while MRP does not.
c. MRP requires time buckets while FCS does not.
d. FCS is an input into traditional MRP systems.
e. FCS uses the Wagner-Whitin algorithm while MRP uses lot-for-lot and EOQ.



Answer: A