Deck 23: Operational Decision-Making Tools: Linear Programming

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

Gross requirements at one level of a product structure generate gross requirements at the next level.

Question 12

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

Question 13

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

Question 14

The total length of time required to manufacture a product is called its cumulative lead time.

Question 15

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

Question 16

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

Question 17

The master production schedule (MPS) is a major input for the MRP process.

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

A load profile displays underloads and overloads.

Question 23

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

Question 24

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

Question 25

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

Question 26

ERP application modules can be used alone or in combination.

Question 27

Cloud computing involves on-demand IT services.

Question 28

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

Question 29

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 30

The last stage in ERP implementation involves analyzing business processes.

Question 31

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 32

Supply chain management (SCM) software plans and executes business processes related to a manufacturing firm.

Question 33

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 34

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 35

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

Question 36

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

Question 37

ERP is beneficial because it transforms transactional data into information that can be used to support decision making.

Question 38

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 39

The product structure file provides all of the following information 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 40

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

Question 41

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 42

Given the following MRP matrix for Item E: The projected on hand quantity at the end of period 3 is

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

Question 43

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 44

Given the following Product Structure Record The number of D's required for each A is

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

Question 45

Given the following MRP matrix for Item E: The planned order releases for period 3 is

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

Question 46

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 is

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

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 planned order release for period 4 is

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

Question 48

Given the following Product Structure Record The number of F's required for each A is

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

Question 49

Given the following MRP matrix for Item D: The planned order release for period 5 is

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

Question 50

Given the following Product Structure Record The number of G's required for each A is

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

Question 51

Given the following MRP matrix for Item E: The planned order releases for period 1 is

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

Question 52

Given the following MRP matrix for Item D: The projected on hand quantity at the end of period 3 is

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

Question 53

Given the following MRP matrix for Item D: The planned order receipt for period 6 is

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

Question 54

Given the following Product Structure Record The number of I's required for each A is

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

Question 55

Given the following Product Structure Record The number of G's required to assemble 10 A's is

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

Question 56

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 is

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

Question 57

______________ 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 58

Given the following MRP matrix for Item D: The planned order release for period 3 is

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

Question 59

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 is

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

Question 60

Given the following Product Structure Record The number of E's required for each A is

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

Question 61

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 is

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

Question 62

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 63

Given the following Product Structure Record The number of F's required for each A is

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

Question 64

_____________________ is a software that organizes and manages a firms business processes by sharing information across functional areas.

A) Materials requirement planning (MRP)
B) Enterprise requirements planning (ERP)
C) Product lifecycle management (PLM)
D) None of these answer choices is correct.

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 the minimum order quantity is

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

Question 66

Given the following Product Structure Record The number of E's required for each A is

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

Question 67

In ERP systems, advanced analytical capabilities that support decision making collectively is called business

A) intelligence.
B) support systems.
C) decision protocol.
D) None of these answer choices is correct.

Question 68

_______________________ software plans and executes business processes involving customer interaction.

A) Product lifecycle management
B) Customer relationship management
C) Supply chain management
D) ERP

Question 69

Given the following MRP matrix for Item E: The planned order releases for period 4 is

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

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

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 71

______________ refers to the selection of ERP modules from different vendors.

A) Integrated systems
B) Best-of-breed
C) Purchase optimization
D) None of these answer choices is correct.

Question 72

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 73

ERP systems consist of a series of __________________ that can be used alone or in concert.

A) accounting applications
B) application modules
C) personal computers
D) None of these answer choices is correct.

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 L4L ordering is used the planned order releases is

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 75

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 76

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 is

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

Question 77

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 78

Which one of the following is not one of the four main categories of ERP modules?

A) Finance/Accounting
B) Sales/Marketing
C) Human Resources
D) Information Technology

Question 79

Given the following Product Structure Record The number of G's required for each A is

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

Question 80

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 period's worth of requirements is

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