Deck 14: Material Requirements Planning and Enterprise Resource Planning

Question 1

There are three main files kept in MRP systems. Determine which file is being described.This file keeps a record of receipts into stock, issues from stock and a running balance.

A) Location file
B) Transaction file
C) Item master file

Answer 1

Transaction file

Question 2

Optimized production technology (OPT) is a computer-based technique and tool that helps to schedule production systems. Which of the following are not principles of OPT?

A) Balance flow is what is required.
B) Capacity is 'king'.
C) Process batch should be variable.
D) Bottlenecks govern throughput.

Answer 2

Capacity is 'king'.

Question 3

MRP II involves using the closed loop MRP system to generate financial figures.

Answer 3

True

Question 4

Back scheduling takes into account the lead time at each level of assembly to determine the time to
start.

Question 5

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is only able to function on a
Unix platform.

A) Feature of ERP
B) Not a feature of ERP

Question 6

Is the following statement a principles underlying Optimised Production technology (OPT) or not:
An hour lost at a bottleneck is an hour lost forever out of the entire system.

Question 7

There are three main files kept in MRP systems. Determine which file is being described.This file contains the part number and all the stable data on a part.

A) Transaction file
B) Item master file
C) Location file

Question 8

There are three main files kept in MRP systems. Determine which file is being described.This file details where the part is kept.

A) Item master file
B) Location file
C) Transaction file

Question 9

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It allows decisions and
Databases from all parts of the organisation to be integrated.

A) Feature of ERP
B) Not a feature of ERP

Question 10

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is often linked to external
Extranet systems.

A) Feature of ERP
B) Not a feature of ERP

Question 11

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It can only be interfaced with
Specially designed applications programs.

A) Feature of ERP
B) Not a feature of ERP

Question 12

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is based on a client/server
Architecture.

A) Feature of ERP
B) Not a feature of ERP

Question 13

In MRP (Materials Requirements Planning) the Bill of Materials is:

A) A list of required safety stock items.
B) The difference between planned receipts and current stocks.
C) The sum of stock-on-hand and work-in-progress.
D) The required output from a process over time.
E) The product structure showing where common parts are used.

Question 14

MPS stands for:

A) Master Production Schedule
B) Material Production Schedule
C) Material Planning System
D) Master Planning System

Question 15

Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is cheap and easy to install.

A) Feature of ERP
B) Not a feature of ERP

Question 16

MRP II uses technology-based decision making to close the loop.

Question 17

MPS stands for:

A) Material Production Schedule
B) Material Planning System
C) Master Production Schedule
D) Master Planning System

Question 18

Is the following statement a principles underlying Optimised Production technology (OPT) or not:
Utilisation and activation of a resource are the same.

Question 19

MRP stands for:

A) Materials Requirements Planning
B) Management Reaction Planning
C) Manufacturing Resource Planning
D) Master Resources Production

Question 20

Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the following is NOT a common criticism of ERP?

A) Implementation is expensive.
B) It can have a disruptive effect on the organisation's operations.
C) It doesn't allow decisions and databases from all parts of the organisation to be integrated.
D) The effect it has on businesses is disappointing.

Question 21

Complete the MRP spreadsheet below for a component which is ordered in varying quantities over weeks 1 - 7. $$\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Week } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\hline \begin{array} { l } \text { Gross } \\\text { Requirement }\end{array} & & 5 & 20 & 10 & 10 & 20 & 10 & 25 \\\hline \begin{array} { l } \text { Scheduled } \\\text { Receipts }\end{array} & & 0 & 30 & 0 & 30 & 25 & 0 & 30 \\\hline \begin{array} { l } \text { Available } \\\text { Balance }\end{array} & 12 & \mathrm { X } & \mathrm { X } & \mathrm { X } & \mathrm { X } & \mathrm { X } & \mathrm { X } & \mathrm { X } \\\hline\end{array}$$ Which answer should correctly replace the Xs?

A) 7 / 17 / 7 / 27 / 32 / 22 / 27
B) 7 / 37 / 57 / 37 / 12 / 22 / 17
C) 17 / 22 / 32 / 52 / 47 / 37 / 32
D) 17 / 27 / 17 / 37 / 12 / 2 / 7
E) 7 / 17 / 27 / 47 / 22 / 12 / 17

Question 22

Relative to a consumer durables manufacturer, a jobbing printer has:

A) Greater visibility of known orders
B) Less visibility of known orders
C) Greater focus on forecast demand

Question 23

What is the most important planning and control schedule in a business?

A) The Master Production Schedule
B) The Staff Requirements Plan
C) The Production Map
D) The Inventory Plan

Question 24

The management of customer orders and sale forecasts is called:

A) Forecast prediction
B) Demand management
C) Order management
D) Key account management

Question 25

Which of the following is unlikely to be included in demand management?

A) Supply negotiation
B) Order promising
C) Physical distribution
D) Demand forecasting

Question 26

ERP is set firmly within the context of the far broader MRP concept.

Question 27

Physical distribution is not part of demand management.

Question 28

Total demand is made up of:

A) Forecast demand
B) Known orders
C) Forecast demand and known orders
D) Average demand over a time period

Question 29

MRP ii's extra sophistication allowed forward modelling of 'what if' scenarios.

Question 30

Known orders are increasingly critical in predicting total demand in the long term.

Question 31

The sales function can load known sales orders against the Master Production Schedule. This information is called:

A) Guaranteed availability
B) Available to promise
C) Assured orders
D) Assured availability

Question 32

Master Production Schedules can be used when chasing demand, when lagging demand or in
level scheduling.

Question 33

Which of the following is NOT of particular interest to the MRP process of calculating materials requirements?

A) The price of goods and services
B) What has been ordered
C) The number of orders
D) The delivery date

Question 34

Which of the following is NOT an input of materials requirements planning?

A) Inventory records
B) Forecast demand
C) Materials plans
D) Bill of materials

Question 35

Which of the following is NOT integrated within an ERP database?

A) Delivery and logistics applications
B) Operations applications
C) Human resource management applications
D) None of the above

Question 36

Materials requirements planning became popular during which decade?

A) 1960s
B) 1970s
C) 1980s
D) 1990s

Question 37

A jobbing printer would typically:

A) Resource to order
B) Make to order
C) Make for stock
D) Resource for stock

Question 38

Which of the following ERP systems does Rolls Royce use?

A) SAP
B) Oracle
C) PeopleSoft
D) Bann

Question 39

The Enterprise Resource Plan drives the whole operation in terms of what is assembled, what is
manufactured and what is bought.

Question 40

Which of the following is NOT an input into the Master Production Schedule?

A) Spares demand
B) Known orders
C) Customer satisfaction feedback
D) Forecast demand

Question 41

What is the name given to the file that keeps a record of receipts into stock, issues from stock and a running balance?

A) Transaction file
B) Item master file
C) Product file
D) Location file

Question 42

Level 1 refers to:

A) The parts that go into sub-assemblies
B) The finished product
C) The parts and sub-assemblies that go into the finished product
D) None of the above

Question 43

A product file contains a unique standard identification code for each part or component.

Question 44

A simplified diagram showing parts required to make a product is termed:

A) Components structure
B) Product structure
C) Product diagram
D) Components diagram

Question 45

The finished product is said to be at which level?

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

Question 46

Parts that go into sub-assemblies are at which level?

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

Question 47

The components required for a product are called:

A) The product map
B) The components package
C) The Master Production Schedule
D) The bill of materials

Question 48

MRP systems that started to include feedback-loops became known as:

A) Open-loop MRP
B) Closed-loop MRP
C) Value-added MRP
D) Feedback-loop MRP

Question 49

The MRP netting process involves:

A) Moving from Level 0 to Level 2
B) Moving from Level 1 to Level 2
C) Moving from Level 2 to Level 0
D) None of the above

Question 50

Considering product structure shape, the more components and parts used at each level:

A) The rounder the shape
B) The longer the shape
C) The wider the shape
D) The flatter the shape

Question 51

Rough cut capacity plans are static level plans that involve looking forward in the long term to
predict the requirements for large structural parts of the operation.

Question 52

On a day-to-day basis, works orders intended to be issued from the MRP will often have a variable effect on the loading of particular machines or individual workers. Which plans project
This load ahead?

A) Organisational work plans
B) Rough cut capacity plans
C) Capacity requirements plans
D) Resource requirements plans

Question 53

Which of the following is considered a disadvantage of manufacturing resource planning?

A) It does not help integrate different systems.
B) It depends on people-based decision making to close the loop.
C) It increases the cost of information.
D) All of the above.