Deck 14: Resource Planning

Question 1

Owens Corning reported savings of ______________ by using ERP.

A)$6 million
B)$16 million
C)$65 million
D)$600 million
E)$660 million

Answer 1

C

Question 2

ERP systems provide _____ and _____ benefits.

A)tangible, HR
B)intangible, marketing
C)marketing, operation
D)tangible, intangible
E)CEO, CFO

Answer 2

D

Question 3

The most critical factors for successful EPR implementation are ______ and _________ ______.

A)leadership, top management commitment
B)leadership, technological transfer management
C)management, technological transfer management
D)funding, top management commitment
E)leadership, detailed technical specifications

Answer 3

A

Question 4

What does ERP stand for?

A)educational resources planning
B)end routing procedure
C)enterprise reliability production
D)enterprise resource planning
E)easy resource planning

Question 5

Second generation ERP systems addressed the first generation deficiency of:

A)inadequate statistics
B)interdepartmental communications
C)integrated modules
D)continuous planning capabilities
E)forecasting capabilities

Question 6

In the mid-1970s, MRPII was developed. One of its major components is:

A)leadership
B)inventory management
C)operations execution
D)strategic management
E)marketing

Question 7

ERP is software designed for _____ and ______ business processes.

A)calculating, budgeting
B)deleting, changing
C)organizing, managing
D)organizing, budgeting
E)selecting, managing

Question 8

Which ERP module handles billing?

A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources

Question 9

Which ERP module includes investment management?

A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources

Question 10

Companies use ____________ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible.

A)capacity management
B)closed-loop requirements planning
C)cut requirements planning
D)capacity resources planning
E)capacity requirements planning

Question 11

Which ERP module includes work-flow analysis?

A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources

Question 12

Which of the following most closely describes dependent demand?

A)demand generated by suppliers
B)demand that is seasonal
C)demand estimates using regression analysis
D)demand derived from finished products
E)demand for repair parts

Question 13

The ERP system provides a single interface:

A)to operations only.
B)to operations and inventory control only.
C)to external members of the supply chain as well.
D)to the company management structure only.
E)to customers only.

Question 14

Independent demand is the demand for ______________.

A)finished products
B)subassemblies
C)parts
D)raw materials
E)components

Question 15

What information system enables companies to have the right material in the right amounts available at the right time?

A)manufacturing resources planning
B)multifunctional requirements planning
C)material requirements planning
D)material relationships planning
E)manufacturing requirements planning

Question 16

Second-generation ERP systems are referred to as ___________ software.

A)scheduling
B)MRP
C)inventory management
D)MPS
E)SCM

Question 17

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

A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources

Question 18

What is an information system designed to integrate internal and external members of the supply chain?

A)material requirements planning
B)master production schedule
C)capacity requirements planning
D)aggregate planning
E)enterprise resource planning

Question 19

What proportion of U.S. companies with greater than $1 billion in annual revenues has implemented ERP?

A)10%
B)20%
C)40%
D)75%
E)95%

Question 20

_______________ MRP is an MRP system that includes production planning, master production scheduling, and capacity requirements planning.

A)Fully-integrated
B)Closed-loop
C)Open-loop
D)Wide-range
E)Enterprise

Question 21

The quantity of the replenishment order is based on the __________________________.

A)capacity available
B)size of the item
C)number of workers available
D)inventory space available
E)lot sizing rule used

Question 22

In MRP, the starting points for each part and material needed to accomplish the master production schedule are the ___________________.

A)net requirements
B)gross requirements
C)planned releases
D)scheduled receipts
E)planned receipts

Question 23

When there is insufficient inventory to satisfy the forecast for a particular period a(n)_____________ order must be placed.

A)BOM
B)restock
C)inventory request
D)MPS
E)MRP

Question 24

A computer-based information system designed to manage dependent demand inventory is _____________.

A)manufacturing resources planning
B)multifunctional requirements planning
C)material relationships planning
D)material requirements planning
E)manufacturing requirements planning

Question 25

The time interval necessary to either manufacture or purchase an item is its ______________.

A)time fence
B)lead time
C)safety time
D)time bucket
E)receipt time

Question 26

What is a technique for improving inventory record accuracy?

A)cycle counting
B)drum, buffer, rope
C)Kanban
D)tracking signal
E)statistical process control

Question 27

Which of the following is an objective of MRP?

A)Keep priorities updated and valid.
B)Keep track of material movements on the shop floor.
C)Provide information for expediting orders.
D)Allocate scarce parts to products.
E)Provide information for activity based costing.

Question 28

The ____________ file lists the materials needed to build a product.

A)master production schedule
B)bill of material
C)inventory records
D)material needs
E)build structure

Question 29

The authorized MPS is a statement of ______________________________.

A)manufacturing orders that have been authorized for release to the shop floor
B)which workers are authorized to work on which machines
C)what the company expects to build and when it expects to build it
D)authorized payments to vendors
E)where different end products are authorized to be manufactured

Question 30

Scheduled receipts are _________________________________________.

A)planned orders
B)planned orders offset by lead time
C)gross requirements offset by lead time
D)gross requirements minus inventory
E)replenishment orders that have been placed but not yet received

Question 31

The ____________ is (are)checked for the materials on hand and those that need to be procured.

A)master production schedule
B)bill of material
C)inventory records
D)material inventories
E)promised deliveries

Question 32

Gross requirements for finished products are taken from ________________________.

A)the inventory records file
B)the order entry file
C)the authorized MPS
D)the bill of materials file
E)forecasted sales

Question 33

The ____________ details the company's planned products, quantity, and the schedule used by marketing when promising deliveries.

A)master production schedule
B)bill of material
C)inventory records
D)material product sales
E)promised deliveries

Question 34

MRP develops a ____________ that shows future demand, supply and inventories by time period.

A)DSI report
B)snapshot forecast
C)requirements plan
D)material movements schedule
E)time-phased schedule

Question 35

For every scheduled receipt in an MRP table, there is also in the organization a(n)__________________.

A)shop floor order
B)order that has been placed but not yet been received
C)planned order
D)period order
E)dispatch list

Question 36

Information in the inventory records file that can change with inventory transactions includes the ________.

A)part number
B)lot size rule
C)projected inventory level
D)lead time
E)safety stock requirement

Question 37

CRP systems are used to check that the amount of work:

A)meets the MRP directive.
B)meets the ERP directive.
C)will make a profit.
D)is feasible.
E)meets OSHA requirements.

Question 38

An error in replenishment ordering can result from a(n)_____________________________.

A)inaccuracy in the inventory records file
B)breakdown of equipment
C)expediting of an order
D)circumstance of working excessive overtime
E)error in accounts receivables

Question 39

Which of the following is not true concerning replenishment orders?

A)They are generated when there is not enough inventory.
B)MRP specifies when to place the order.
C)The order may be for material from a supplier.
D)They are orders for the final product.
E)The order may be for material from the manufacturing floor.

Question 40

Information that may be contained in the inventory records file includes all except which of the following?

A)part numbers
B)run times for manufactured parts
C)part names
D)lead times
E)safety stock requirements

Question 41

Which of the following is not a lot size rule?

A)lot for lot
B)fixed order quantity
C)overall factors
D)least total costs
E)parts period balancing

Question 42

A visual depiction of the subassemblies and components that are needed to produce a finished product is called a(n)______________________.

A)assembly time chart
B)product structure tree
C)peg
D)product chart
E)blueprint

Question 43

An order released to a supplier authorizes ______________________________________.

A)the shipment of the material so that it arrives as needed
B)movement of the material from the warehouse to the supplier
C)the sending of information concerning production to the supplier
D)accounting to set up an accounts receivable entry
E)the logistics manager to start investigating shipment options

Question 44

A positive quantity in the current period's planned order row means that ___________________.

A)lead time is too long
B)the projected available is negative
C)gross requirements are too large
D)the planned order is due to be completed in the current period
E)an order must be released

Question 45

The MRP file that contains data on specific materials used to make final products and their correct quantities is the ______________________.

A)authorized master production schedule
B)bill of materials file
C)inventory records file
D)part status file
E)routing file

Question 46

Which of the following is not true for action notices that are produced by MRP systems?

A)An action notice is produced when a planned order needs to be released.
B)An action notice is produced when due dates of orders need to be adjusted.
C)An action notice is produced when the lead time is not sufficient for a planned order.
D)An action notice is produced when inventory is moved to the manufacturing floor.
E)They indicate actions that need to be taken by inventory planners.

Question 47

For any period the beginning inventory, plus any replenishment orders due, less the gross requirement equals is called the __________________________.

A)planned orders
B)projected available quantity
C)scheduled receipts
D)lead time
E)safety stock

Question 48

The beginning inventory for any time period is equal to _____________________________________.

A)safety stock plus gross requirements from the previous period
B)scheduled receipts plus projected available quantity
C)planned orders plus scheduled orders
D)projected available quantity from at the end of the previous period
E)gross requirements less scheduled orders

Question 49

The lead time can be less than the cumulative lead time when _________________________.

A)the company has inventory on hand
B)the order has already been shipped
C)the supply chain is well tuned
D)there is no safety time
E)the order is expedited

Question 50

The cumulative lead time is _______________________________.

A)the sum of the lead times for all the components
B)the sum of the lead time and the safety time
C)the number of time buckets used in the MRP
D)the longest route in terms of time from the low level items to the end item in the product structure tree
E)lead time less the safety time

Question 51

An action notice is generated ________________________________________.

A)for planned orders in any period
B)only for orders that are to be released to the shop floor
C)only for movements to and from the warehouse
D)only when marketing needs to be notified
E)when a planned order needs to be released

Question 52

When there is insufficient inventory to cover the gross requirements for a period

A)an MRP is placed
B)an ERP is placed
C)a planned order is placed
D)a scheduled order is placed
E)a rush order occurs

Question 53

Production and inventory planners release orders to ________________________.

A)the expediter
B)either an external supplier or to the shop floor
C)the logistics manager
D)either the shop floor or to the warehouse
E)marketing

Question 54

If an order is not scheduled to arrive in time, the planner tries to ________________.

A)find a replacement order
B)cancel the order
C)split the order in two
D)expedite the order
E)talk marketing into changing the due date

Question 55

Which of the following is not true concerning indented bills of materials?

A)Subsequent levels are indented further to the right.
B)Children are indented toward the right.
C)The highest level parents are closest to the left margin.
D)Quantity required is shown for each part number.
E)Lead times determine how far children are indented.

Question 56

The gross requirements of a given component part are determined from ______________________.

A)scheduled receipts plus projected available
B)gross requirements of the parent
C)planned orders of the parent
D)projected available of the end item
E)planned orders of the end item

Question 57

The MRP input listing the intermediate assemblies, subassemblies, component parts, raw materials, and the quantities of each needed to produce one final product is the ___________________________.

A)authorized master production schedule
B)bill of materials file
C)inventory records file
D)part status file
E)assembly time chart

Question 58

Which of the following is not true for planned orders?

A)They are necessary only for finished products.
B)They result when there is not enough inventory to cover the gross requirements.
C)The quantity is calculated using the lot-sizing rule.
D)The lead time is required to determine when the order should be placed.
E)The inventory records file is updated for the order.

Question 59

The current time period is referred to as __________________.

A)time zero
B)the point of departure
C)the start time
D)the action bucket
E)this year

Question 60

An item that has no parents is a(n)______________.

A)subassembly
B)end item
C)child item
D)intermediate assemble
E)component

Question 61

Which of the following is not an intangible benefit of ERP?

A)improved customer response
B)better integration between systems
C)global sharing of information
D)increased flexibility
E)improved on-time delivery performance

Question 62

If the available capacity at a work center is not adequate, the company can __________________.

A)decrease run times per piece
B)authorize overtime
C)expedite
D)decrease order quantities
E)hold up payment

Question 63

Dell practices _____________________________.

A)focused customization
B)make to stock production
C)mass merchandising
D)mass customization
E)frozen assembly schedules

Question 64

ERP modules are fully integrated.

Question 65

Setup time is changed:

A)once each day regardless of product changes.
B)each time the operator begins the machine.
C)each time the machine is prepared to produce the desired item quantity.
D)for each shift that works on the desired item quantity manufacturing.
E)on rare occasions if it takes significant time.

Question 66

Selection of the lot size rule to be used should be based on minimizing ____________________.

A)the order size
B)late shipments
C)total processing time
D)quality problems
E)the sum of ordering and carrying costs

Question 67

Different lot size rules determine the quantity of the order and __________________.

A)the quality
B)change the frequency of replenishment orders
C)how projected available is calculated
D)the lead time
E)the backorder cost

Question 68

Capacity requirements planning enables the company to evaluate ____________________.

A)employee morale
B)its suppliers
C)its manufacturing costs
D)quality
E)how well it is using its critical work centers

Question 69

The primary objective of ERP is to integrate all departments and functions, internal and external, onto a single computer system to serve the enterprise's needs.

Question 70

If setup costs are essentially zero (negligible when compared to carrying costs), which approach should be used for lot sizing?

A)lot for lot
B)fixed order quantity
C)period order quantity with POQ = 6 periods
D)period order quantity with POQ = 2 periods
E)period order quantity with POQ = 4 periods

Question 71

Which of the following is not a major supplier of ERP systems?

A)SAP AG
B)PeopleSoft
C)Oracle
D)Infor.com
E)IBM

Question 72

With capacity requirements planning, the calculated workload for a work center is compared with ___________.

A)available capacity
B)calculated workloads for other work centers
C)the cost of expanding the work center
D)standard capacity
E)design capacity

Question 73

Capacity requirements planning uses data from _________________________.

A)MRP
B)rough-cut capacity planning
C)aggregate planning
D)MPS
E)the bill of labor file

Question 74

Which of the following is not a direct input to capacity requirements planning?

A)planned shop orders
B)open shop orders
C)setup time and run time per unit for shop orders
D)current inventory levels
E)quantity for shop orders

Question 75

Supply chain intelligence enables strategic decision-making along the supply chain.

Question 76

According to the textbook, most manufacturing operations, production or inventory control planners are responsible for working with MRP. Planners are typically responsible for all except which of the following:

A)end item inventory items
B)subassemblies inventory items
C)component inventory items
D)raw material pricing
E)supplier delays

Question 77

For capacity requirements planning, loads for critical work centers are calculated based on ___________.

A)open external supplier orders and planned external supplier orders
B)gross requirements for the end product
C)open shop orders and planned shop orders
D)safety stock
E)the sum of ordering and carrying costs

Question 78

ERP systems are more commonly found in small companies than in large ones.

Question 79

Which of the following does not share a common ERP database?

A)internal to the organization
B)suppliers
C)customers
D)the supply chain
E)CEO strategic plan

Question 80

Material requirements planning is an information system designed to integrate internal and external members of the supply chain.