Deck 15: Resource Planning

Question 1

An enterprise resource planning (ERP)system shares information across functional areas.

Answer 1

True

Question 2

The application modules that comprise the ERP system are designed to support only customer relationship management processes.

Answer 2

False

Question 3

A load profile displays underloads and overloads.

Answer 3

True

Question 4

Material requirements planning (MRP)is useful for managing and scheduling discrete demand items.

Question 5

The master production schedule (MPS)is a major output of the MRP process.

Question 6

A forecast of dependent demand requirements is one of the major inputs into the MRP process.

Question 7

Material requirements planning (MRP)translates the master production schedule into requirements for components,subassemblies,and raw materials.

Question 8

Lot sizing rules are used in MRP to determine work or purchase order quantities.

Question 9

Modular bills of material are used to group small,lose parts together into a kit.

Question 10

Information concerning on-hand quantities,lot sizes and,lead time,figures can be found in the master production schedule (MPS).

Question 11

ERP systems are only concerned with production and marketing processes.

Question 12

Capacity requirement planning (CRP)converts the material plan into labor and machine workloads.

Question 13

The optimal time required to manufacture a product is called its cumulative lead time.

Question 14

Customer relationship management (CRM)software plans and executes business processes that involve customer interactions.

Question 15

Very simple products typically do not require material requirements planning (MRP)to plan production or monitor inventory levels.

Question 16

The periodic order quantity (POQ)lot sizing technique that places orders every demand period.

Question 17

Planned order releases at one level of a product structure generate gross requirements at the next level.

Question 18

A material requirements planning (MRP)system serves as both an inventory control system and as a production scheduling system.

Question 19

One objective of material requirements planning (MRP)is to utilize all available capacity.

Question 20

Capacity requirements planning (CRP)projects the load from a given material plan onto the capacity of a system.

Question 21

Load leveling is used to resolve underloaded and overloaded capacity conditions.

Question 22

The last stage in ERP implementation involves analyzing business processes.

Question 23

The total length of time to purchase an item from a supplier is called its cumulative lead time.

Question 24

The quantities reported on a master production schedule may reflect a combination of actual and forecasted demand.

Question 25

The quantities displayed on a master production schedule represent production and not actual demand.

Question 26

A phantom bill of material is appropriate when a product consists of assemblies that are later combined to form a variety of final products.

Question 27

Customer relationship management systems change the focus from managing products to managing customers.

Question 28

Material requirements planning (MRP)is more useful for simple products and less useful for complex products.

Question 29

The product structure file lists all of the following except

A)the product's demand.
B)the items that go into the product.
C)a brief description of each item.
D)when and in what quantity each item is needed in the assembly process.

Question 30

Material requirements planning (MRP)is a useful for all of the following except

A)dependent demand items.
B)discrete demand items.
C)independent demand items.
D)erratic orders.

Question 31

Firms that successfully implement an MRP system no longer require cycle counting of inventory.

Question 32

Single-source ERP systems are often easier to integrate than systems built using the best-in-breed approach.

Question 33

Because the item master file is an input into the MRP process it should be updated to reflect any revisions or changes.

Question 34

A _______________ of material is used to plan the production of products with many optional features.

A)K-bill
B)modular bill
C)phantom bill
D)time-phased bill

Question 35

37.All of the following are inputs into the MRP process except

A)the master production schedule.
B)the product structure file.
C)the item master file.
D)the planned order report.

Question 36

Enterprise resource planning integrates business processes at the expense of customer interaction.

Question 37

A matrix is used to organize and display the information generated by the MRP process.

Question 38

ERP application modules can be used alone or in combination.

Question 39

A phantom bill of material is used

A)to group small,loose parts together.
B)when the product is manufactured in major subassemblies.
C)for subassemblies that are immediately consumed in the next stage of production.
D)when due dates have not been calculated.

Question 40

Effective capacity is determined by multiplying the rated capacity by utilization and efficiency.

Question 41

Which of the following is not a major input into capacity requirements planning (CRP)?

A)planned order releases
B)routing file
C)load profiles for each work center
D)open orders file

Question 42

Given the following MRP matrix for Item D:

The projected on hand quantity at the end of period 3 would be

A)0
B)20
C)60
D)70

Question 43

Given the following MRP matrix for Item D:

The planned order receipt for period 6 would be

A)100
B)120
C)160
D)270

Question 44

Given the following Product Structure Record

The number of D's required for each A would be

A)2
B)3
C)6
D)12

Question 45

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,then using the Periodic Order Quantity lot sizing technique,the Planned Order Release for period 1 would be

A)270
B)290
C)340
D)560

Question 46

______________ is a lot sizing technique that orders for multiple demand periods is referred to as

A)Lot-for-lot (L4L)
B)Periodic order quantity (POQ)
C)Economic order quantity(EOQ)
D)Multiple order quantity (MOQ)

Question 47

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,then using the Periodic Order Quantity lot sizing technique,the Projected on Hand at the end of period 7 would be

A)330
B)270
C)0
D)140

Question 48

Given the following Product Structure Record

The number of I's required for each A would be

A)1
B)2
C)6
D)12

Question 49

Given the following Product Structure Record

The number of E's required for each A would be

A)1
B)2
C)3
D)4

Question 50

All of the following can be used for underloaded conditions except

A)acquiring additional work.
B)pushing work back.
C)pulling work ahead.
D)reducing normal capacity.

Question 51

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,the periodic order quantity would be

A)3 periods of requirements
B)2 periods of requirements
C)1 period of requirements
D)0 period of requirements

Question 52

The item master file contains all the following except

A)on-hand quantities.
B)lead times.
C)planned order releases.
D)on-order quantities.

Question 53

Which of the following would not be used for an overloaded condition?

A)pulling work ahead
B)rerouting jobs to alternative work centers
C)pushing work back
D)splitting lots between two or more machines

Question 54

Given the following MRP matrix for Item D:

The planned order release for period 3 would be

A)100
B)160
C)270
D)300

Question 55

The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as

A)cycle counting.
B)lot sizing.
C)exploding.
D)netting.

Question 56

A load profile compares

A)requirements for all lower-level items to higher-level items.
B)cumulative lead times to projected lead times.
C)the quantities in which items should be produced to actual demand.
D)released and planned orders with work center capacity.

Question 57

Given the following Product Structure Record

The number of G's required for each A would be

A)40
B)20
C)18
D)3

Question 58

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,then using the Periodic Order Quantity lot sizing technique,the Planned Order Release for period 4 would be

A)270
B)290
C)340
D)560

Question 59

The MRP process of determining requirements for lower level items based on the master production schedule is referred to as

A)lot sizing.
B)netting.
C)backward scheduling.
D)exploding.

Question 60

Given the following MRP matrix for Item D:

The planned order release for period 5 would be

A)100
B)120
C)160
D)270

Question 61

Given the following Product Structure Record

The number of E's required for each A would be

A)3
B)6
C)12
D)24

Question 62

When is it appropriate to use material requirements planning (MRP)?

Question 63

Given the following Product Structure Record

The number of G's required to assemble 10 A's would be

A)9
B)10
C)90
D)180

Question 64

What is a bill-of-material?

Question 65

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If EOQ lot sizing is used to set the minimum order quantity,then the planned order releases would be

A)40 in period 1 and 0 in period 3
B)0 in period 2 and 80 in period 3
C)120 in period 2 and 120 in period 3
D)100 in period 2 and 100 in period 3

Question 66

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If EOQ lot sizing is used to set the minimum order quantity,then the projected on hand quantity at the end of period 3 would be

A)40
B)0
C)100
D)20

Question 67

What is the difference between independent and dependent demand?

Question 68

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If EOQ lot sizing is used the minimum order quantity would be

A)85
B)100
C)120
D)150

Question 69

What is the master production schedule (MPS)and what role does in play in the material requirements planning (MRP)process?

Question 70

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If L4L ordering is used the planned order releases would be

A)40 in period 1 and 0 in period 3
B)80 in period 2 and 60 in period 3
C)60 in period 2 and 80 in period 3
D)0 in period 1 and 40 in period 3

Question 71

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If the periodic order quantity lot sizing rule is used,the number of periods worth of requirements would be

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

Question 72

Given the following Product Structure Record

The number of G's required for each A would be

A)2
B)8
C)12
D)24

Question 73

Given the following MRP matrix for Item E:

The projected on hand quantity at the end of period 3 would be

A)0
B)100
C)300
D)500

Question 74

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.

If the periodic order quantity lot sizing rule is used,then planned order releases in Period 2 would be

A)40 in period 1
B)60 in period 2
C)120 in period 3
D)140 in Period 2

Question 75

How does MRP differ from traditional inventory control systems?

Question 76

Given the following MRP matrix for Item E:

The planned order releases for period 1 would be

A)300
B)200
C)75
D)0

Question 77

Given the following MRP matrix for Item E:

The planned order releases for period 3 would be

A)300
B)200
C)75
D)0

Question 78

Given the following Product Structure Record

The number of F's required for each A would be

A)6
B)12
C)18
D)24

Question 79

Given the following Product Structure Record

The number of F's required for each A would be

A)2
B)3
C)12
D)16

Question 80

Given the following MRP matrix for Item E:

The planned order releases for period 4 would be

A)300
B)200
C)75
D)0