Question 1

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

Accepted Answer

The closed loop MRP system is the only one with a provision for feedback that enables plans generated by the system to be checked and adjusted. This feedback loop is essential for ensuring that the system is accurately predicting demand and effectively managing inventory levels. The other options (open loop MRP, semi-open loop MRP, and open loop CRP) do not have this feedback provision.

Question 2

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

Accepted Answer

Electronic medical records (EMR) are used in health care to store and manage patient medical records, including diagnosis, treatment plans, and test results. EMRs serve a similar function to organizations employing Enterprise Resource Planning (ERP) systems, which are used to store and manage organizational data such as finance, inventory, and supply chain data.

Question 3

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

Accepted Answer

Most of the product differentiation and industry-specific functionality are incorporated in the manufacturing module of the ERP system. This module includes features such as production planning, shop floor control, bill of materials, and quality control, which can be tailored to meet the specific needs of different industries.

Question 4

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?

Accepted Answer

The applications that provide customers with sales quotes, schedule orders, print shipping labels, generate leads, and create sales literature are all part of the customer resources management (CRM) module of the ERP system. Therefore, the best choice is C.

Question 5

Which of the following statements is FALSE about CRP?

Accepted Answer

CRP (Capacity Requirements Planning) is primarily applicable to job-shop production, not flow-shop production.

Question 6

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

Accepted Answer

Open loop MRP systems do not have provisions for feedback, which means that plans and schedules are developed assuming on-time, correct delivery of materials ordered by suppliers. They also do not consider finite capacity or adjust production plans based on changes in demand. Therefore, option C is the only true statement about open loop MRP systems.

Question 7

Which of the following statements is FALSE about lot splitting?

Accepted Answer

Lot splitting is a technique used in production planning to reduce overloads and compress lead times by splitting a single lot into multiple sublots. Therefore, statement D is false.

Question 8

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

Accepted Answer

A bill of resources provides a detailed breakdown of the materials, equipment, and labor required to produce a single unit of a product. It is essential for effective production planning and inventory management. Production orders, planned orders, and transfer orders each serve different purposes in the manufacturing process, but none specifically identify the key resources needed for production.

Question 9

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?

Accepted Answer

The finance and accounting module of an ERP system typically includes tools for financial management, such as budgeting, cash-flow management, expense management, risk management, and tax management. The other modules listed (HRM, CRM, SCM) are focused on other areas of business management.

Question 10

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.

Accepted Answer

The data mentioned in the statement relates to different functional areas of an enterprise such as inventory, production, accounts payable, and shipping. Such data can be entered into an ERP system that can integrate all these functional areas to provide a centralized view of the enterprise's operations. MRP, MRP II, and DRP systems are more focused on specific areas of manufacturing and distribution and may not be well-suited to handle all the data mentioned in the statement.

Question 11

The use of open loop MRP system leads to ______.

Accepted Answer

The use of open loop MRP systems can lead to disruptions on the shop floor since the system does not take into account real-time changes and updates on the production floor. This can lead to inaccurate demand forecasts and production schedules, causing delays and errors in the production process.

Question 12

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

Accepted Answer

MRP II systems aim to reduce costs and improve efficiencies in production processes, so escalated costs would be a disadvantage rather than a benefit. The other options - better inventory control, efficient scheduling, and improved relationships with suppliers - are all common benefits of MRP II systems.

Question 13

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 ______.

Accepted Answer

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 known as enterprise resource planning (ERP). MRP, MRP II, and DRP are all related to specific aspects of manufacturing and distribution planning, but do not encompass the full scope of cross-functional business processes addressed by an ERP system.

Question 14

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

Accepted Answer

The module of the ERP system that includes applications for managing payrolls, time and labor tracking, compensation management, employee recruitment, and planning workforce needs is the human resources management (HRM) module.

Question 15

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

Accepted Answer

This statement is false. MRP II systems do have tools to track employee attendance, labor contribution, and productivity, as they are designed to manage and optimize all aspects of manufacturing operations, including human resources.

Question 16

Which of the following statements is FALSE about ERP systems?

Accepted Answer

ERP systems are designed to integrate and automate the flow of information across all departments within a company. They use a centralized database with a common computing platform and standardize business processes for coordination of all resources and activities. However, ERP systems do not require data to be entered multiple times into the system. Instead, data is entered once and shared across all departments.

Question 17

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

Accepted Answer

The answer of ______ is the coordination of all activities...

Question 18

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

Accepted Answer

The SCM module typically includes applications for demand management (forecasting and planning), inventory management, distribution management, procurement, sourcing and order management. Therefore, option C is the best choice as it includes all these functionalities. The manufacturing module primarily deals with production planning and execution, while HRM and finance and accounting modules are focused on managing human resources and financial transactions, respectively.

Question 19

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

Accepted Answer

MRP II is an extension of closed loop MRP, which includes additional capabilities such as capacity planning, shop floor scheduling, and financial planning. Closed loop MRP uses feedback from the shop floor to update the master production schedule and ensure that materials and capacity are available to meet production needs.

Question 20

______ 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.

Accepted Answer

MRP (Material Requirements Planning) focuses on the coordination of raw materials purchasing, while MRP II (Manufacturing Resource Planning) expands on this by also facilitating the development of a detailed production schedule, including considerations for machine and labor capacity.

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