Deck 22: Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Question 1

9)Work-in-process inventory builds up at the work station when ______.

A)load to a work center exceeds its existing capacity
B)load to a work center is lesser than its existing capacity
C)load to a work center is equal to its existing capacity
D)load to a work center is zero

Answer 1

A

Question 2

10)In the context of a CRP system,a ______ represents the setup time plus run time required from a specific work center.

A)load
B)flow time
C)capacity
D)work schedule

Answer 2

A

Question 3

19)The process of setting loading limits on the amount of load assigned to each work center per period is ______.

A)finite loading
B)infinite loading
C)capacity loading
D)work center loading

Answer 3

A

Question 4

6)______ is accomplished by finite scheduling through the use of techniques such as input-output control.

A)Capacity requirements
B)Capacity planning
C)Capacity assessment
D)Capacity control

Question 5

4)Capacity planning for the ______.time range is called capacity requirements planning (CRP).

A)short
B)long
C)medium
D)extended

Question 6

2)A process that enables a company to analyze the capabilities of its operation system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is ______.

A)material resource planning (MRP)
B)capacity requirements planning (CRP)
C)distribution requirements planning (DRP)
D)enterprise resource planning (ERP)

Question 7

3)______ refers to the production capability of a facility per unit of time.

A)Capacity
B)Inventory buffer
C)Demand
D)Production volume

Question 8

1)Companies use ______ systems to systematically plan and control their logistics and product distribution activities.

A)material resource planning (MRP)
B)capacity requirements planning (CRP)
C)distribution requirements planning (DRP)
D)enterprise resource planning (ERP)

Question 9

13)Which of the following is NOT a key input to a CRP system?

A)planned order releases from MRP system
B)load information from work center
C)job times
D)delivery schedule

Question 10

15)Two hundred fifty units of Component X are scheduled for production.Each unit of X requires labor standard time of 2 hours per unit and machine standard time of 1 hour per unit.The standard machine hours of load requirements are ______.

A)250
B)500
C)400
D)350

Question 11

8)The amount of planned work scheduled and actual work assigned to a production facility for a specified period of time is a ______.

A)load
B)production volume
C)capacity
D)work schedule

Question 12

12)Capacity requirements planning (CRP)is most conducive for ______ production processes.

A)job-shop
B)intermittent
C)outlier
D)flow-shop

Question 13

7)Capacity planning activities work in tandem with ______ and include resource planning,rough-cut capacity planning,and capacity requirements planning.

A)priority control activities
B)priority planning activities
C)capacity control activities
D)capacity assessment activities

Question 14

5)Capacity decisions in the short term are referred to as ______.

A)capacity requirements
B)capacity planning
C)capacity assessment
D)capacity control

Question 15

11)The goal of ______ is to regulate both the flow of work orders and work center capacities in order to achieve a steady flow of work with minimal load back-up.

A)material resource planning (MRP)
B)distribution requirements planning (DRP)
C)capacity requirements planning (CRP)
D)enterprise resource planning (ERP)

Question 16

14)Two hundred fifty units of Component X are scheduled for production.Each unit of X requires labor standard time of 2 hours per unit and machine standard time of 1 hour per unit.The standard labor hours of load requirements are ______.

A)250
B)500
C)400
D)350

Question 17

16)The process of loading all the work centers without regard to the actual capacity available in the work center is ______

A)finite loading
B)infinite loading
C)capacity loading
D)work center loading

Question 18

20)______ is the division of a single lot into two or more sublots and simultaneously processing each sublot on identical (or very similar)work centers as separate lots.

A)Lot processing
B)Lot splitting
C)Lot allocating
D)Lot wrapping

Question 19

17)The advantage of ______ is that it enables planners to see the impact the planned order releases will have on the capacity required at the work centers.

A)capacity loading
B)infinite loading
C)finite loading
D)work center loading

Question 20

18)Finite loading is best suited for ______ capacity control decisions.

A)short-range
B)medium-range
C)long-range
D)extended-range

Question 21

25)The ______ system has a provision for feedback that enables plans generated by the system to be checked and adjusted.

A)open loop MRP
B)semi-open loop MRP
C)closed loop MRP
D)open loop CRP

Question 22

33)The ______ systems used in health care serve a similar function to organizations employing EPR systems.

A)electronic medical records
B)emergency medical records
C)enterprise medical records
D)expert medical records

Question 23

36)In which module of the ERP system is most of the product differentiation,including industry specific functionality,incorporated?

A)manufacturing
B)human resources management (HRM)
C)supply chain management (SCM)
D)finance and accounting

Question 24

39)Which module of the ERP system includes applications that provide customers with sales quotes,schedule orders,print shipping labels,generate leads,and create sales literature?

A)finance and accounting
B)human resources management (HRM)
C)customer resources management (CRM)
D)supply chain management (SCM)

Question 25

21)Which of the following statements is FALSE about CRP?

A)It is primarily applicable to job-shop production.
B)It requires large amounts of data.
C)It does not show the effect of master schedule revisions on achieving load balances.
D)It is primarily applicable to flow-shop production.

Question 26

23)Which of the following statements is true about open loop MRP systems?

A)There are provisions for feedback.
B)Plans and schedules are developed assuming finite capacity.
C)Plans and schedules are developed assuming on-time,correct delivery of materials ordered by suppliers.
D)Schedules are maintained by adjusting production plans when changes in demand occurred.

Question 27

22)Which of the following statements is FALSE about lot splitting?

A)It compresses lead times.
B)It reduces overloads.
C)It splits single lot into multiple sublots.
D)It increases lead times.

Question 28

31)______ identifies the key resources such as labor,machines,tools,space,and materials needed to produce one unit of a product.

A)A bill of resources
B)A production order
C)A planned order
D)A transfer order

Question 29

40)Which module of the ERP system includes tools for financial management,such as creating and adhering to budgets,cash-flow management,expense management,risk management,and tax management?

A)finance and accounting
B)human resources management (HRM)
C)customer resources management (CRM)
D)supply chain management (SCM)

Question 30

35)The following is data that can be entered into the ______ system: customer order entry,ripples through the enterprise changing inventory,production schedules,accounts payable,balance sheet,materials reordering,and shipping schedules.

A)manufacturing resource planning (MRP)
B)manufacturing resource planning (MRP II)
C)enterprise resource planning (ERP)
D)distribution requirements planning (DRP)

Question 31

24)The use of open loop MRP system leads to ______.

A)shop floor disruptions
B)on-time deliveries to customers
C)limited replanning
D)reduced costs

Question 32

29)Which of the following is NOT a benefit of MRP II systems?

A)better inventory control
B)escalated costs
C)efficient scheduling
D)improved relationships with suppliers

Question 33

32)A system that provides a real-time integrated view of a company's core business processes through information sharing to tie together the critical components of an organization to achieve cross-functional collaboration is ______.

A)manufacturing resource planning (MRP)
B)manufacturing resource planning (MRP II)
C)enterprise resource planning (ERP)
D)distribution requirements planning (DRP)

Question 34

37)Which module of the ERP system includes applications for managing payrolls,time and labor tracking,compensation management,employee recruitment,and planning workforce needs?

A)manufacturing
B)human resources management (HRM)
C)supply chain management (SCM)
D)finance and accounting

Question 35

27)Which of the following statements is FALSE about MRP II systems?

A)They create a detailed production schedule to coordinate the arrival of components with resources such as labor and machine availability.
B)They are an extension of a closed loop MRP system.
C)They add value at every phase,beginning with the purchase of materials,through the manufacturing facility to the shipping dock,where the product is packaged and send to end customer.
D)They lack tools to track employee attendance,labor contribution,and productivity.

Question 36

34)Which of the following statements is FALSE about ERP systems?

A)They use a centralized database with a common computing platform.
B)They standardize business processes for coordination of all resources and activities.
C)They require data to be entered multiple times into the system.
D)They integrate and automate flow of information across all departments within a company.

Question 37

30)______ is the coordination of all activities related to production by providing consistent data to all participants involved in various stages of the production process.

A)Manufacturing resource planning (MRP)
B)Manufacturing resource planning (MRP II)
C)Enterprise resource planning (ERP)
D)Distribution requirements planning (DRP)

Question 38

38)Which module of the ERP system includes applications for demand management,inventory management,distribution management,procurement,sourcing,and order management?

A)manufacturing
B)human resources management (HRM)
C)supply chain management (SCM)
D)finance and accounting

Question 39

26)Manufacturing resource planning (MRP II)is an extension of the ______ system.

A)open loop MRP
B)semi-open loop MRP
C)closed loop MRP
D)open loop CRP

Question 40

28)______ allows for the coordination of raw materials purchasing,whereas ______ facilitates the development of a detailed production schedule that accounts for machine and labor capacity and for scheduling the production runs.

A)MRP,MRP II
B)MRP II,MRP
C)MRP,CRP
D)MRP,DRP

Question 41

52)______ is a system used by companies to systematically plan and control their logistics and product distribution activities through generating a time-phased,inventory-replenishment plan to manage and minimize inventories in the supply chain.

A)manufacturing resource planning (MRP)
B)manufacturing resource planning (MRP II)
C)enterprise resource planning (ERP)
D)distribution requirements planning (DRP)

Question 42

49)The DRP process typically begins at the ______ level.

A)retail
B)customer
C)supplier
D)demand

Question 43

55)DRP is similar to ______.

A)a process map
B)an assembly chart
C)MRP
D)Pareto analysis

Question 44

50)DRP is a ______ system because demand at the retail level pulls the inventory and shipments through the supply chain

A)pull
B)push
C)proactive
D)continuous

Question 45

43)______ systems typically include modules that provide back-office support,customer relationship management,time management,expense management,resource management,and project management.

A)Service ERP
B)MRP
C)MRP II
D)DRP

Question 46

59)To meet the end customer order due dates,it is the responsibility of the master scheduling and MRP system to ensure that ______.

A)purchase orders are issued with the right prices at which materials are to be purchased
B)production and purchase orders are issued with valid due dates
C)the right quantities of materials are specified
D)the right personnel are hired for the company

Question 47

42)Business in the ______ sector have to first assess their operations' needs before selecting a specific ERP package.

A)manufacturing
B)service
C)mining
D)hospitality

Question 48

57)Which of the following statements is true with regard to a capacity requirements planning system and the MRP system?

A)A capacity requirements planning system operates in tandem with the MRP system.
B)A capacity requirements planning system operates in isolation from the MRP system.
C)Having both a capacity requirements planning system and an MRP system is redundant.
D)A capacity requirement planning system operates in parallel with the MRP system.

Question 49

54)DRP is used by companies to ______.

A)systematically plan and control their logistics and product distribution activities
B)manage inventory levels of finished products at distribution centers
C)ensure continuous improvement of the production process
D)integrate data across all functional areas

Question 50

47)Which of the following is NOT a benefit of the DRP system?

A)efficient inventory management
B)cost-efficient production process
C)unavailability of stock
D)meeting promised due dates

Question 51

48)By generating accurate forecasts of demand,time-phased delivery schedules can be developed.This is the underlying idea behind the ______ system.

A)manufacturing resource planning (MRP)
B)manufacturing resource planning (MRP II)
C)enterprise resource planning (ERP)
D)distribution requirements planning (DRP)

Question 52

56)ERP systems provide ______.

A)a real-time integrated view of a company's core business processes
B)a monthly report on the company's core business processes
C)a quarterly report on the company's core business processes
D)a daily report on the company's core business processes

Question 53

45)Improved availability of sufficient supplier capacity,improved accuracy of capacity plans,and paperwork reduction are benefits of ______ on supply chain performance.

A)service ERP systems
B)MRP systems
C)MRP II systems
D)DRP systems

Question 54

53)Companies make capacity planning decisions for the medium-term through ______.

A)capacity requirements planning (CRP)
B)capacity Pareto planning (CPP)
C)production requirements planning (PRP)
D)distribution requirements planning (DRP)

Question 55

41)Which of the following is a limitation of the ERP systems?

A)reduction in operating and administrative costs
B)creation of functional boundaries causing problems of accountability and confusion about the lines of responsibility
C)reduction in production and delivery lead times
D)provision of a real-time,enterprise-wide view of the business for faster and more effective decision-making

Question 56

44)Improved on-time delivery,improved quality performance,and improved supplier relations are benefits of ______ on supply chain performance.

A)service ERP systems
B)MRP systems
C)MRP II systems
D)DRP systems

Question 57

58)Which of the following statements is true with regard to capacity planning over different time horizons?

A)Capacity planning for the long term is called capacity requirements planning.
B)Capacity decisions in the long term are referred to as capacity control.
C)Capacity planning for the medium-time range is called capacity requirements planning.
D)Capacity planning for the short term is called capacity requirements planning.

Question 58

60)Which of the following is NOT one of the activities included under capacity planning?

A)resource planning
B)rough-cut capacity planning
C)finished products inventory planning
D)capacity requirements planning (CRP)

Question 59

46)Distribution requirements planning (DRP)is also referred to as ______.

A)distribution resource planning
B)distribution replenishment planning
C)distribution replacement planning
D)distribution retail planning

Question 60

51)Which of the following statements is FALSE about using ERP systems to promote greater sustainability?

A)The integration of all facets of an enterprise can contribute to manufacturer's sustainability efforts.
B)Standard ERP business modules can be integrated to support data from the many environmental sources that are affected by manufacturing activity.
C)Factoring in additional costs related to sustainable operations is always straightforward.
D)Vendors and users of ERP systems will need to consider how to rework their calculations for fixed assets,job costing,and many more applications in order to pursue sustainability.

Question 61

80)The amount of planned work scheduled and actual work assigned to a production facility for a specific period of time is called a ______.

A)sublot
B)load
C)batch
D)lot

Question 62

68)When CRP loads all the work centers without regard to the actual capacity available in the work center,this type of loading is called ______.

A)inconsiderate loading
B)infinite loading
C)overloading
D)finite loading

Question 63

76)Which of the following is NOT one of the limitations of CRP systems?

A)CRP is primarily applicable to job-shop production.
B)It requires large amounts of input data.
C)It is useful only for products involving continuous processing such as in oil refineries.
D)It does not show the effect of master schedule revisions on achieving load balances.

Question 64

78)Which of the following statements about MRP II is true?

A)When it was introduced,MRP II did not have any provision for feedback.
B)It was introduced in the 1990s.
C)It was introduced to replace CRP.
D)It is replaced by DRP.

Question 65

70)When loading limits are set on the amount of load assigned to each work center per period,this is referred to as ______.

A)finite loading
B)limited loading
C)controlled loading
D)managed loading

Question 66

61)Which of the following is the primary concern of capacity control?

A)making sufficient capacity available to execute jobs identified by detailed scheduling
B)making sure there is sufficient inventory of raw materials available to execute jobs
C)making sure the right production sequence is identified
D)making sure the right production sequence is followed

Question 67

71)When we use lot splitting,we ______.

A)divide a single lot into two or more sublots and process each sublot on similar work centers
B)divide a single lot into two or more sublots and manufacture each batch or sub lot in sequence
C)divide a single lot into two or more sublots and outsource the manufacture of one or more sublots
D)divide a single lot into multiple sublots and process each sublot on different work centers

Question 68

63)In the context of a CRP system,a load represents ______.

A)the setup time plus run time required from a specific work center
B)the product of the setup time and the run time required from a specific work center
C)the ratio of the setup time to the run time required from a specific work center
D)the difference between the setup time and the run time required from a specific work center

Question 69

69)An advantage of infinite loading is that it enables planners to ______.

A)see the impact that planned order releases will have on capacity required at work centers
B)adjust marketing efforts to match with available capacity
C)revise resource procurement to match with available capacity
D)relax any capacity constraints from production planning

Question 70

77)Which of the following is FALSE about MRP II?

A)It is an extension of MRP.
B)It was first introduced in the late 1960s.
C)It was introduced as an open loop MRP system.
D)It quickly replaced CRP.

Question 71

67)The CRP system converts tentative planned shop orders into standard hours of load by ______.

A)assessing the levels of inventory of finished product,given the availability of raw materials
B)multiplying each period's production quantity requirements by standard labor or equipment requirements per unit,or both
C)averaging the availability of resources per production hour
D)basing the calculations on the production volume from the preceding production period

Question 72

65)CRP systems,like MRP systems,are most useful for ______.

A)job-shop or batch production processes
B)continuous production processes
C)production of a single product
D)service operations

Question 73

74)If it is not possible to increase capacity,then ______.

A)the master schedule needs to be revised
B)marketing efforts need to be reduced
C)prices have to be increased (so less product will be demanded)
D)a new facility will have to be built to meet the demand

Question 74

64)The goal of CRP is to regulate both the flow of work orders and work center capacities in order to ______.

A)minimize production costs
B)maximize production volumes
C)minimize inventory of finished products
D)minimize load back-up with steady workflow

Question 75

75)If a master schedule has to be revised,then the manager may have to ______.

A)reassign priorities on some customer orders
B)cut corners on quality
C)reduce the quantity to be marketed
D)raise the pay for hourly workers

Question 76

62)In capacity requirements planning,we project or estimate ______.

A)the level of demand for each product that we are planning to produce
B)resource requirements for labor,equipment,and other production needs
C)the quantity of finished product to be stored in different distribution centers
D)the activities at each workstation to balance workload

Question 77

66)Which of the following is NOT a key input to a CRP system?

A)planned order releases from the MRP system
B)job times
C)inventory levels
D)routing information

Question 78

79)The process that enables a company to analyze the capabilities of its operations system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is called ______.

A)capacity requirements planning (CRP)
B)manufacturing resource planning (MRP II)
C)enterprise resource planning (ERP)
D)distribution requirements planning (DRP)

Question 79

73)Which of the following is NOT an acceptable way to increase capacity?

A)using overtime
B)transferring employees from idle work centers
C)subcontracting some of the work
D)reducing quality requirements

Question 80

72)Which of the following is NOT a consequence of lot splitting?

A)compresses lead time
B)reduces overloads
C)minimizes inventory
D)reduces the unit cost of production