Deck 4: Production and Supply Chain Management Information Systems

Question 1

The percentage of the order that the supplier provided in the first shipment is known as the initial order lead time.

Answer 1

False

Question 2

Production planners aggregate products into product groups to make forecasts and plans more accurate.

Answer 2

False

Question 3

Demand Management is the process where sales forecasts are adjusted to incorporate the impact of marketing initiatives.

Answer 3

False

Question 4

An ERP system is a good tool for developing and executing production plans because it integrates the functions of production planning,purchasing,materials management/warehousing,quality management,sales,and accounting.

Question 5

Another term for the list of ingredients required to make a product is the bill of materials.

Question 6

The initial fill rate measures the time needed for the supplier to fill the order.

Question 7

Make to order items are produced to fill customer's requests.

Question 8

A make-to-stock production system is where:

A)items are made for inventory in anticipation of sales orders.
B)items are produced to fill specific customer orders.
C)items are assembled for a specific customer order from an inventory of components
D)both a and c

Question 9

After material requirements are entered into the system,the program automatically turns the planned orders into purchase orders without further input from planners.

Question 10

The production plan for all finished goods is known as the MPS,or the master production schedule.

Question 11

In a traditional supply chain,demand information is transmitted rapidly to all members of the supply chain.

Question 12

Because Fitter Snacker uses large quantities of oats,the most cost-effective way to purchase oats is to buy a farm and grown them.

Question 13

Rough-cut planning is a common term in manufacturing for aggregate planning.

Question 14

The cost it normally takes to manufacture a product,which is usually derived from historical data and any changes that have occurred since then,is known as a structured cost.

Question 15

ERP systems are necessary to implement good supply chain management.

Question 16

The Sales and Operations Planning process is used to combine the sales forecast with capacity information to determine a production plan for finished goods.

Question 17

Lead times and lot sizing help a company determine the transfer of goods to the customer.

Question 18

The MRP process determines the schedule of finished goods production.

Question 19

The term supply chain describes all the activities required to move raw material from inventory to manufacturing for the purpose of producing a product.

Question 20

The percentage of the order that the supplier provides in the first shipment is known as the first-rate.

Question 21

What is the maximum number of cases that Fitter Snacker can produce in the month if they schedule workers for overtime on weekdays only?

A)7,666
B)9,199
C)9,582
D)10,249

Question 22

What is the maximum number of cases they can product in the month if they schedule workers for overtime on weekdays and Saturdays?

A)7,666
B)9,199
C)9,582
D)10,249

Question 23

What is the production plan for all finished goods?

A)MPS - master production schedule
B)QQR - quality query run
C)PPR - production planning run
D)RUN - run

Question 24

The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January.If there are 22 days in the month,how many cases of snack bars should be produced in a 4-day week?

A)188
B)752
C)940
D)1034

Question 25

Figure 4-2 The SAP ERP production planning process
In the accompanying figure,which shows the SAP ERP production planning process,what is A?

A)MRP
B)Sales Forecasting
C)Starting Inventory
D)Detailed Scheduling

Question 26

Figure 4-2 The SAP ERP production planning process
In the accompanying figure,which shows the SAP ERP production planning process,what is C?

A)Starting Inventory
B)Sales Forecasting
C)MRP
D)Detailed Scheduling

Question 27

An unexpected increase in product demand can lead to:

A)a depletion of finished goods inventories
B)a depletion of raw materials inventories
C)increased overtime and transportation expenses
D)all of the above
E)both a and b

Question 28

What is the sales forecast for June of this year that Fitter Snacker should use?

A)6,628
B)7,128
C)6,935
D)7,143

Question 29

The costs normally required to manufacture a product,which are calculated from historical costs and any changes from that,are known as ____.

A)standard costs
B)abbreviated costs
C)known costs
D)estimated costs

Question 30

-Immediately after MRP is run in SAP ERP:

A)the stock/requirements list and MRP list are both updated and show the same information.
B)the MRP list is updated but the stock/requirements list is unaffected.
C)the stock/requirements list is updated but the MRP list is unaffected.
D)none of the above.

Question 31

In detailed scheduling,longer production runs of a particular product:

A)increases the available capacity by reducing the frequency of setups.
B)increases finished goods inventory levels.
C)reduces finished goods inventory levels.
D)both a and b
E)both a and c

Question 32

What metric tracks the number of times a supplier meets the agreed upon delivery date?

A)initial fill rate
B)initial order lead time
C)on-time performance
D)cash-to-cash cycle time

Question 33

____ are disaggregated to generate detailed production schedules.

A)Bills of materials
B)Production runs
C)Internet sales orders
D)Rough-cut plans

Question 34

The production plan for Fitter Snacker calls for 7000 cases of the snack bar product group in June.If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars,how many NRG-A bars should be produced in June?

A)500
B)2100
C)4900
D)7000

Question 35

What process answers the question "What do we need to order to produce the product,and when do we need to order these raw materials?"

A)SF - sales forecasting
B)SOP - sales and operations planning
C)MRP - materials requirements planning
D)DS - detailed scheduling

Question 36

Figure 4-2 The SAP ERP production planning process
In the accompanying figure,which shows the SAP ERP production planning process,what is D?

A)Starting Inventory
B)Detailed Scheduling
C)Sales Forecasting
D)MRP

Question 37

The order of the steps in the SAP R/3 production planning process are:

A)Sales Forecasting,Demand Management,Purchasing,Sales and Operations Planning,MRP,Detailed scheduling,Production
B)Sales Forecasting,Demand Planning,Detailed scheduling,Purchasing,Demand Management,MRP,Production
C)Sales and Operations Planning,Sales Forecasting,MRP,Purchasing,Demand Management,Detailed scheduling,Production
D)Sales Forecasting,Sales and Operations Planning,Demand Management,MRP,Purchasing,Detailed scheduling,Production

Question 38

-What Planned Orders will the MRP logic create?

A)An order for 44,000 units in week 2
B)An order for 44,000 units in week 3
C)An order for 44,000 units for weeks 2 and 3
D)An order for 88,000 units for week 3

Question 39

Figure 4-2 The SAP ERP production planning process
In the accompanying figure,which shows the SAP ERP production planning process,what is B?

A)Starting Inventory
B)Detailed Scheduling
C)Sales Forecasting
D)MRP

Question 40

-What will the On Hand inventory be in week 5 after the system calculated planned orders?

A)0
B)440
C)8,038
D)14,038

Question 41

____________________ refers to the process of determining production quantities (for raw materials produced in-house)and order quantities (for purchased items).

Question 42

Figure 4-1 Fitter Snacker's manufacturing process

Describe Fitter Snacker's communication problems with regard to the production process.

Question 43

Figure 4-1 Fitter Snacker's manufacturing process

Describe Fitter Snacker's inventory problems with regard to their production process.

Question 44

COMPLETION

The ____________________,shown in the accompanying figure for Fitter Snacker,is a list of the materials needed to make NRG-A and NRG-B bars.

Question 46

List and explain each step of the production planning process.

Question 47

How can data be entered into the SAP ERP system on the shop floor?

Question 48

What stage of the production planning process splits Fitter Snacker's monthly production planning values into finer time periods?

A)Sales Forecasting
B)BOM
C)MRP
D)Demand Management

Question 49

What is repetitive manufacturing?

Question 50

Figure 4-1 Fitter Snacker's manufacturing process

Describe Fitter Snacker's accounting and purchasing problems with regard to its production process.

Question 51

When might the SAP ERP system block the entry of the receipt of goods in the receiving department?

Question 52

What are the three principles that production planners follow?

Question 53

What are the three general approaches to production?

Question 54

Explain Fitter Snacker's manufacturing process as shown in the accompanying figure:
Figure 4-1 Fitter Snacker's manufacturing process

Question 55

SAP can provide sophisticated tools to support sales and operations planning.Is that all that is necessary for a company to be successful? Support your answer by discussing the departments of marketing and manufacturing.

Question 56

Describe the measurements of success with Supply Chain Management.