Deck 6: Resource Planning Systems

Question 1

A Master Production Schedule is an engineering document that shows an inclusive listing of all component parts and subassemblies making up the end item.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.

Question 5

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.

Question 6

Distribution requirements plan (DRP) operates in a dependent demand situation.

Question 7

Legacy systems were designed to perform a very specific operational function.

Question 8

In general, single integrator ERP solutions are better suited to more intricate workplaces.

Question 9

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.

Question 10

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.

Question 11

The chase production strategy works well when highly skilled workers are needed, especially in a tight labor market.

Question 12

MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.

Question 13

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.

Question 14

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.

Question 15

System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.

Question 16

Legacy MRP systems typically utilized multiple software packages and databases which caused the same information to be stored in multiple locations.

Question 17

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.

Question 18

The legacy MRP system was programmed to coordinate with other functional areas in the firm.

Question 19

The mixed strategy uses overtime and subcontracting to cope with the high demand periods.

Question 20

Lead Capacity Strategy is a reactive approach that adjusts its capacity in response to demand.

Question 21

The best-of-breed solution picks all the desired applications from a single vendor for the ERP system.

Question 22

Which of the following MRP terms represents a committed order awaiting delivery for a specific period?

A) Projected on-hand inventory
B) Time bucket
C) Net requirement
D) Scheduled receipt

Question 23

If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:

A) Master Production Schedule
B) Most recent positive ATP
C) Beginning inventory
D) Bill of materials

Question 24

Which of the following basic production strategies works best with make-to-order manufacturing firms?

A) Capacity Production Strategy
B) Mixed production Strategy
C) Level Production Strategy
D) Chase Production Strategy

Question 25

Calculate the final discrete available-to-promise quantity for Week 1 using the following table.

A) ATP1 = 0
B) ATP1 = 10
C) ATP1 = 15
D) ATP1 = 20

Question 26

In a bill of materials, items at which level are independent demand items?

A) Level 0
B) Level 1
C) Level 2
D) Level 3

Question 27

What is the most important output of the MRP?

A) Bill of materials
B) Distribution requirements plan
C) Planned order releases
D) Aggregate production plan

Question 28

The __________ specifies which end product is to be made, how many are required, and when they need to be completed.

A) Aggregate production plan
B) Master production schedule
C) Bill of material
D) Super bill of materials

Question 29

Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities?

A) Discrete available-to-promise
B) Cumulative available-to-promise without looking ahead
C) Indiscrete available-to-promise
D) Cumulative available-to-promise with looking ahead

Question 30

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?

A) The Level Production Strategy
B) Mixed Production Strategy
C) The Chase Production Strategy
D) The Aggregate Production Strategy

Question 31

The _______________ is used to check the feasibility of the Master Production Schedule.

A) Distribution Requirement Plan
B) Material Requirement Plan
C) Capacity Requirement Plan
D) Rough-Cut Capacity Plan

Question 32

Which of the following keeps the production plan's capacity fixed during the planning horizon?

A) Materials Requirements Plan
B) Master Capacity Plan
C) Aggregate Production Plan
D) Capacity Requirements Plan

Question 33

Implementing a best-of-breed solution may cause firms to link databases from multiple software applications of different vendors.

Question 34

Complete the following MRP record and provide the planned order releases for Week 1.Lead time is 2 weeks.Safety stock is 3.Use LFL lot sizes.

A) 34
B) 26
C) 29
D) 14

Question 35

Which of the following MRP terms represents the parts demanded by a parent?

A) Gross requirement
B) Component
C) Net requirement
D) Scheduled receipt

Question 36

Which of the following results from using the chase production strategy?

A) The workforce fluctuates in response to the demand pattern
B) Finished goods inventories remain constant
C) Both A & B
D) None of these

Question 37

Which strategy uses overtime and subcontracting to cope with the high demand periods ?

A) The Level Production Strategy
B) Mixed Production Strategy
C) The Chase Production Strategy
D) The Aggregate Production Strategy

Question 38

Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?

A) Resource requirements plan
B) Material requirements plan
C) Rough-cut capacity plan
D) Master production schedule

Question 39

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?

A) Material requirements plan
B) Master production schedule
C) Demand time fence
D) Capacity Requirements Plan

Question 40

Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.

Question 41

According to the textbook, which of the following is considered a reason that ERP implementations fail?

A) Top management becomes overcommitted to the point where they constantly encourage the employees during implementation
B) Lack of communication within an organization
C) Organizations tend to spend too much time and money training their employees on the new system
D) All of the above

Question 42

Legacy MRP systems had which of the following limitations?

A) The systems needed continuous modifications
B) The systems were not user-friendly
C) The systems were designed to perform a very specific operational function
D) All of these

Question 43

While ERP is a relatively new technology, it has grown rapidly since the early 1990s.Which of the following is the reason that has contributed to its rapid growth?

A) The increased use of email during the 1990's
B) The trend for companies to eliminate their supply chain partners
C) The year 2000 millennium bug
D) All of the above

Question 44

Which of the following is NOT a common module of ERP systems?

A) Human Resources Management
B) Customer Relationship Management
C) Marketing Resources Management
D) Supply Chain Management

Question 45

This chapter discussed both materials planning and capacity planning.Consider those concepts in answering the following questions:
a.Which is more appropriate for a conventional service organization? Why?
b.Which is more appropriate for a conventional manufacturing organization? Why?
c.What are the three hierarchical components of materials planning? Provide a brief description of each.
d.What are the three hierarchical components of capacity planning? Provide a brief description of each.

Question 46

The acronym ERP is short for:

A) Enterprise Resource Planning
B) Electronic Resource Provider
C) Executive Resource Plan
D) Electronic Requirements Provider

Question 47

Legacy MRP systems typically utilized multiple software packages and databases which caused:

A) The system to crash often
B) The same information to be stored in multiple locations
C) Data integrity
D) Planned order releases

Question 48

Which of the following is considered a disadvantage of utilizing an ERP system?

A) ERP systems reduce the bullwhip effect
B) ERP systems are very complex and have proven difficult to implement
C) ERP systems use a single database and common infrastructure
D) Once ERP information is entered it is made available to all users

Question 49

Calculate the final discrete available-to-promise quantity row using the following table below and explain how the numbers are generated.

Question 50

The ___________ solution picks all the desired applications from a single vendor for the ERP system.

A) Best-of-breed
B) Elite integrator
C) Single integrator
D) Premier application

Question 51

What is ERP? Why was it developed?

Question 52

What does it mean if your organization has chosen to adopt a best-of-breed solution?

Question 53

Why are firms migrating to ERP systems?

A) ERP systems are easy to implement, particularly in large organizations
B) ERP systems tie together a variety of specialized systems
C) ERP systems are successful with two-dimensional processes
D) ERP systems are inexpensive to implement

Question 54

Which of the following is considered an advantage/benefit of utilizing an ERP system?

A) Fairly inexpensive to purchase and implement
B) Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries
C) Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model
D) All of the above

Question 55

An advantage/benefit of utilizing an ERP system includes which of the following?

A) ERP systems are designed to take advantage of Internet technology
B) ERP systems enable the firm to automate some of the steps of a manufacturing process
C) Both A & B
D) None of the above

Question 56

Explain the three basic production strategies used to complete the aggregate plan.

Question 57

Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:

A) Customer relationship management and Human resource management
B) Computer assisted drawing and Photo enhancing
C) Operating systems and Internet browsing
D) All of the above

Question 58

Complete the Projected on Hand Inventory and Planned Order Release rows.

Question 59

Describe the limitations of a legacy MRP system.?

Question 60

Using the ________________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.

A) Best-of-breed solution
B) Elite integrator solution
C) Multi-modular solution
D) Premier application solution

Question 61

Your firm is considering modernizing its organizational information systems.
Your boss asks you, "Do you think our company needs an ERP system?" Obviously, without knowing the details of this company or the industry in which it operates, it would be difficult to provide a detailed answer to this question.
Your new project may take days, weeks, or even months to answer accurately, but before you begin your research you should develop a short but detailed outline for a paper that will inform the boss about the basics of ERP, the advantages of ERP, as well as the disadvantages of ERP.
Answer some of these questions within your outline/answer:
•What is ERP?
•Why should the organization get an ERP system?
•Why might the organization not want to get ERP?
•If we did get an ERP system what would be required for successful implementation?

Question 62

Given the following information, complete the MRP records below and explain how the numbers are generated.Note the bill of materials.Also note the lot sizes and lead times.There are no scheduled receipts and no safety stock is required.