Operations Management – Chapter 12

1. MRP works best if the stock certificate compass points have capable take.TrueFalseTRUE MRP is best for babelike demand scenarios.2. Low level coding represents items less than $18 per social unit.TrueFalseFALSE Low-level coding codes items at their last BOM levels.3. Indep extirpateent demand tends to be more lumpy than myrmecophilous demand meaning that we need large quantities followed by periods of no demand.TrueFalseFALSE Dependent demand is more lumpy.4. Lumpy demand for atoms results primarily from the periodic scheduling of tummy performance.TrueFalseTRUE Batch take use ups to lumpy demand for components.5. MRP is used within most MRP II and ERP administrations.TrueFalseTRUE MRP II and ERP arrangements coordinated MRP.6. The master reapingion enumeration states which end items be to be produced, in addition to when and how many.TrueFalseTRUE These atomic number 18 fine inputs into MRP.7. Net requirements equal earn requirements minus resort stock.Tru eFalseFALSE If safety stock is required, exculpate requirements result be higher.8. The master schedule needs to be for a period long enough to cover the curvaceous or cumulative lead intravenous feedingth dimension necessary to produce the end items.TrueFalseTRUE This ensures that materials casts can be adequately formulated.9. Initi ally, a master takings schedule the output from MRP whitethorn not represent a executable schedule.TrueFalseTRUE Management must make more detailed mental ability requirements intend to receive whether these more detail capacity requirements can be met and some ad howeverments in the master yieldion schedule may be required.10. MRP, considering catalogue range, bills of material, open purchase effects and lead propagation guarantees a feasible production visualise if the inputs to MRP are accurate.TrueFalseFALSE MRP may lead to an infeasible production plan if capacity requirements are not considered.11. The bill of materials indicat es how more than material pull up stakes be needed to produce the quantities on a given master production schedule.TrueFalseFALSE The bill of materials indicates how much material will be needed to produce one unit of the item in question.12. A bill of materials needs a adverting of all the assemblies, separate, and materials needed to produce one unit of an end item.TrueFalseTRUE The bill of materials indicates how much material will be needed to produce one unit of the item in question.13. The bill of materials checks information on lead times and current inventory position on every component required to produce the end item.TrueFalseFALSE Inventory records contain this information.14. The inventory records contain information on the circumstance of each item by time period.TrueFalseTRUE Inventory records also contain information on lead times and current inventory position.15. An assembly-time chart indicates gross and net requirements victorious into account the current a vailable inventory.TrueFalseFALSE Assembly-time charts have to do with capacity, not inventory.16. MRP II did not replace or improve the basic MRP.TrueFalseTRUE MRP II incorporates basic MRP.17. The gross requirements at one level of an MRP plan determine the gross requirements at the next demoralize level continuing on down to the last-place levels shown on the bill of material.TrueFalseFALSE Released stray quantities at one level determine gross requirements at the next glower level.18. The gross requirements value for any given component is equal to the net requirements of that components immediate parent figure by the measuring stick per parent.TrueFalseFALSE Released range quantities for the parent lead to gross requirements of the child.19. The term pegging refers to identifying the parent items that have generated a given set of material requirements for a leave-taking or subassembly.TrueFalseTRUE Pegging ties items to their parents.20. A net-change MRP system is one that is updated sporadically but not less frequently than once a work work calendar week.TrueFalseFALSE A net-change system is updated as transactions occur.21. One reason that accurate bills of material are authorised is that errors at one level start out magnified at lower levels because of the extension process used by MRP.TrueFalseTRUE Small higher-level errors can be magnified into larger lower-level errors.22. A regenerative MRP system is one that is updated continuously every time there is a schedule change.TrueFalseFALSE Regenerative systems are updated periodically.23. One of the basal output reports of MRP concerns changes to intend establishs.TrueFalseTRUE Changes to intend orders can be outputs from MRP systems.24. sentry duty time is sometimes used in MRP rather than safety stock quantities.TrueFalseTRUE Safety time is a substitute for safety stock.25. Lot-for- plug lodge in MRP provides coverage for some predetermined number of periods employ forecasted demand to extend beyond the orders already received for those periods.TrueFalseFALSE This is fixed-period ordering.26. MRP output reports are divided into two main groups effortless and weekly.TrueFalseFALSE The two groups are primary and secondary.27. In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.TrueFalseFALSE EOQ is more useful at lower levels since lower-level items often have less lumpy demand.28. Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.TrueFalseTRUE Load reports help the formulation of feasible production schedules.29. ERP began in manufacturing organizations but has dust into service organizations.TrueFalseTRUE Over time ERP has spread into a wide variety of organizations.30. MRP II is simply an improved version of MRP th at processes faster and can plan for a larger number of end items.TrueFalseFALSE MRP II takes into account capacity requirements.31. Lot-for-lot ordering in MRP eliminates the guardianship costs for move that are carried over to other periods.TrueFalseTRUE Lot-for-lot ordering minimizes holding costs.32. Capacity requirements supply (CRP) is an important feature in MRP+.TrueFalseFALSE CRP is a feature of MRP II.33. Project Management approaches can help in a conversion to an ERP system.TrueFalseTRUE ERP conversions can be complex projects.34. As long as a forecast is prescribed or minus 10%, MRP works well.TrueFalseFALSE MRP needs accurate forecasts.35. ERP represents an expanded effort to integrate similar record-keeping that shares information among different areas of an organization.TrueFalseTRUE ERP is intended to facilitate consistent decision-making across the organization.36. Back flushing takes place after the production has been completed.TrueFalseTRUE Records are upda ted based on end-item production.37. Before a schedule know can take place, and order must be placed with a vendor.TrueFalseTRUE A scheduled receipt is an order that has already been placed.38. MRP in truth doesnt apply to services since raw material isnt required.TrueFalseFALSE MRP can be used in services.39. ERP implementation requires house and a direct mandate from the CEO because it impacts so many different operable areas.TrueFalseTRUE ERP implementation is an organization-wide initiative.40. ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting.TrueFalseTRUE ERP extends beyond purchasing and materials management.41. Which of the adjacent most closely describes subject demand?A. demand generated by suppliersB. estimates of demand using regression analysis of independent variablesC. erived demandD. demands placed on suppliers by their customersE. net material requirementsC42. ERP implementation likely wont r equireA. cross functional teamsB. just a few weeks to installC. intensive trainingD. high funding for both(prenominal) initial cost and maintenanceE. frequent upgrades after installationB43. A computer-based information system designed to payle ordering and scheduling of dependent-demand inventories isA. computer aided manufacturing (CAM)B. computer integrated manufacturing (CIM)C. economic order quantity (EOQ)D. material requirements readying (MRP)E. conomic run size (ERS)D44. The development and application of MRP depended upon two developments(1) the recognition of the difference between independent and dependent demand, and (2)A. computersB. development of the EOQ modelC. inventory control systemsD. blanket purchase ordersE. the internetA45. The output of MRP isA. gross requirementsB. net requirementsC. a schedule of requirements for all parts and end itemsD. inventory reorder pointsE. economic order quantities and reorder pointsC46. Which one of the succeeding(a) is not an input in an MRP system?A. planned-order schedulesB. bill of materialsC. master production scheduleD. inventory recordsE. wholly are inputs.A47. The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is theA. master scheduleB. bill-of-materialsC. inventory-recordsD. assembly-time chartE. net-requirements chartA48. In an MRP master schedule, the planning horizon is often separated into a series of times periods calledA. peggingB. lead timesC. stacked lead timesD. time bucketsE. firm, fixed and frozenD49. The MRP input listing the assemblies, subassemblies, parts, and raw aterials needed to produce one unit of finished product is theA. master production scheduleB. bill-of-materialsC. inventory-recordsD. assembly-time chartE. net-requirements chartB50. A visual depiction of the subassemblies and components that are needed to produce and/or receive a product is called a(n)A. assembly time chartB. product structure treeC. MRP IID. peggingE. Gantt chartB51. The MRP input storing information on the status of each item by time period (e. g. , scheduled receipt, lead time, lot size) is theA. master production scheduleB. bill-of-materialsC. inventory-recordsD. assembly-time chartE. net-requirements chartC52. Which one of the side by side(p) most closely describes net material requirements?A. gross requirements amount on-hand scheduled receiptsB. gross requirements planned receiptsC. gross requirements order releases + amount on-handD. gross requirements planned order releasesE. gross requirements amount on-hand + planned order releasesA53. In MRP, scheduled receipts areA. identical to planned-order receiptsB. identical to planned-order releasesC. open orders (that is, arranged before the basic time bucket, but not delivered yet)D. net requirementsE. available to promise inventoryC54. In MRP, beneath lot-for-lot ordering, planned-order receipts areA. identical to scheduled receiptsB. identical to planne d-order releasesC. open orders (that is, ordered before the first time bucket, but not delivered yet)D. gross requirementsE. available to promise inventoryB55. Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?A. gross requirementsB. net requirementsC. economic order quantityD. gross requirements net requirementsE. net requirements amount on-handB56. In MRP, the gross requirements of a given component part are calculated fromA. net requirements + amount on-hand.B. gross requirements of the immediate parent.C. planned orders of the end item.D. net requirements of end item.E. planned orders of the immediate parent.E57. The identification of parent items is calledA. PaternityB. PeggingC. Requirement I. D.D. Relationship trackingE. Master SchedulingB58. Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is calledA. peggingB. planned order releaseC. et change D. regenerativeE. exception reportD59. An MRP system whose records are updated continuously is referred to as a(n)A. regenerative systemB. batch-type systemC. Plossl-Wright systemD. net-change systemE. gross-change systemD60. Which is true of a net-change system?A. It is a batch-type system which is updated periodically.B. It is usually run at the ancestor of each month.C. The basic production plan is modified to polish changes as they occur.D. It is used to authorize the execution of planned orders.E. It indicates the amount and timing of future changes.C61. Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?A. peggingB. safety stockC. increased order sizesD. safety timeE. low-level codingD62. Which of the following lot sizing methods does not attempt to poise ordering (or setup) and holding costs?A. economic order quantityB. economic run sizeC. lot-for-lotD. part-periodE. all of the aboveC63. When MRP II systems embarrass feedback, they are known asA. MRPIIIB. Enterprise resource planningC. Circular MRPD. Feasible MRPE. Closed Loop MRPE64. The multiplication process used by MRP to determine lower level requirements is calledA. time-phasingB. peggingC. nettingD. projectingE. explodingE65. _______ is choosing how many to order or make.A. sum determinationB. Package sizingC. Lot sizingD. GroupingE. AggregationC66. Which of the following is not usually necessary in order to have an effective MRP system?A. a computer and softwareB. an accurate bill of materialsC. lot-for-lot orderingD. an up-to-date master scheduleE. integrity of file dataC67. The _________ of ERP makes it blue-chip as a strategic planning tool.A. Internet baseB. Rapid Batch capabilityC. Employee focusD. Real-time aspectE. Database structureD68. A recent effort to expand the scope of production resource planning by involving other functional areas in the planning process has beenA. materi al requirements planningB. capacity requirements planningC. manufacturing resources planningD. Just-In-Time planningE. multifunctional relationships planningC69. Which statement concerning MRP II is false?A. It is basically a computerized system.B. It can handle complex planning and scheduling quickly.C. It involves other functional areas in the production planning process.D. It involves capacity planning.E. It produces a production plan which includes all resources required.E70. Which of these items would be most likely to have dependent demand?A. Xbox batteriesB. toy trainsC. flowersD. chocolate chip cookiesE. wrist watchesA71. Which of these products would be most likely to have dependent demand?A. refrigeratorsB. automobile enginesC. televisionsD. browniesE. automobilesB72. Using the product tree shown, determine the following SEE attribute(A) the quantity of component K that will be needed to assemble 80 units of P, assuming no on-hand inventory of any components exists.B) the quantity of component K needed to assemble 80 units of P, given on-hand inventory of 30 As, 50 Bs and 20 Cs.A) 3 Ks per C x 2 Cs per A x 2 As per P + 2 Ks per B x 5 Bs per P + 3 Ks per C x 3 Cs per P = 31 Ks per P. For 80 Ps, a total of 2,480 Ks will be needed.B) With 30 As, 50 Bs and 20 Cs on-hand, K requirements are 3 Ks per C x 2 Cs per A x (2 As per P 30 As) + 2 Ks per B x (5 Bs per P 50 Bs) + 3 Ks per C x (3 Cs per P 20 Cs) for 80 Ps, a total of 2,140 Ks will be needed.Feedback Explode the bill of material.73. The following is a list of components required to produce one unit of nd item P P 2 As, 3 Bs, 3 Cs A 5 Ms, 2 Rs B 1 D, 3 Ns. C 1 T, 4 Ns M 1 N Determine the number of Ns that will be needed to make 60 Ps in each of these cases(A) There are currently 10 Ps on hand.(B) On-hand inventory consists of 15 Ps, 10As, 20 Bs, 10 Cs, deoxycytidine monophosphate Ns, 300 Ts, and cc Ms.A) 1 N per M x 5 M per A x 2 A per P + 3 N per B x 3 B per P + 4 N per C x 3 C per P = 31 N per P. For 60 P, N requirements are 31 N per P x (60 P 10 OH) = 1,500 N.B) A total of 945 Ns will be needed.Feedback Explode the bill of material.74. disposed the following information, construct a product tree diagram and develop a material requirements plan that will lead to 400 units of product P being available at the start of week 7. SEE IMAGE SEE IMAGEFeedback Items C and D must be planned last.75. recrudesce a material requirements plan for end item P and its components, given the tree below. Assume that all lead times are one week, and that lot-for-lot ordering is used except for item F, which is ordered in multiples of 400 units. One hundred units of P should be available at the start of week 4 and at the start of week 8. Beginning inventories are 20 P, degree Celsius A, and 200 F. Scheduled receipts are 800 F at the start of week 1. SEE IMAGE SEE IMAGE All items have zero balances except F, which carries 240 units forward from period 5.Feedback Item F must be planned last. 76. Given the following data, construct a material requirements plan which will result in 100 units of Parent 1 (P1) at the beginning of week 6, and 200 units of Parent 2 (P2) at the beginning of week 8 SEE IMAGE SEE IMAGE Item A has an on-hand balance of 70 units after week 7, Item B has an on-hand balance of 150 units after week 7, and Item C has an on-hand balance of 1,500 units after week 4.Feedback Cs gross requirements come from planned releases for A and B.77. End item of imports product structure tree and inventory information are as follows SEE IMAGE(A) If 50 units of Alpha are to be assembled, how many additional units of S will be needed? All parts can be ordered using lot-for-lot ordering, except M, which must be ordered in multiples of 40 units. Hint You dont need to do an MRP plan. (B) An order for 100 units of Alpha is scheduled to be shipped at the start of week 9. When is the earliest that any particular component must be started so that the order for Alpha will be ready to ship? Hint You dont need to do an MRP plan. A) Gross requirements for S are 200 units, leading to net requirements for S of 100 units.B) Additional units of W will have to be started at the beginning of week 1. Feedback If 50 units of Alpha are to be assembled, then gross requirements for K will be 50 and gross requirements for M will be 100. Net requirements for K will be 20 and net requirements for M will be 70. K is ordered lot-for-lot, so its net requirements lead to gross requirements for S of 40 units. M is ordered in multiples of 40, so its order quantity of 80 units will lead to gross requirements for S of 160 units.The longest sum of lead times is 8 (Alphas 2 weeks + Hs 4 weeks + Ws 2 weeks). This means that additional units of W will have to be started at the beginning of week 1.78. Refer to this product-tree SEE IMAGEIf 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?A. 8B. 16C. 136D. 204E. 272E79. Refer to this produc t-tree SEE IMAGEIf 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?A. 48B. 144C. 192D. 212E. 272C80. Refer to this product-tree SEE IMAGE.If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?A. 340B. 350C. 380D. 400E. 590B81. Bunny Helpers, Inc. has just received an order for 100 Deluxe east wind Baskets, which must be ready for delivery at the start of week six. An MRP deviser has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand SEE IMAGE Each Deluxe Basket contains two smuggled chocolate truffles and four forge chocolate orchis additionally one bottle of Alka-Selzer is included for those who overindulge.What is the net requirement for Dark drinking chocolate Truffles to fill this order?A. 100B. 140C. 150D. 180E. 200C82. Bunny Helpers, Inc. has just received an o rder for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week six. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand SEE IMAGE Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs additionally one bottle of Alka-Selzer is included for those who overindulge.When should an order for Carved Chocolate ballock be released?A. t the start of week 2B. at the start of week 3C. at the start of week 4D. at the start of week 5E. at the start of week 6A83. Bunny Helpers, Inc. has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week six. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand SEE IMAGE Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs additionally one bottle of Alka- Selzer is included for those who overindulge. How many Dark Chocolate Eggs should be ordered?A. 310B. 450C. 500D. 550E. 600A84. Bunny Helpers, Inc. has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week six. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand SEE IMAGE Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs additionally one bottle of Alka-Selzer is included for those who overindulge.If the firm is using a fixed period lot size of two periods, what is the order size for the first order?A. 120B. 200C. 280D. 160E. 150B85. Which of the following represents an attempt to balance the benefits of stableness against the benefits of responding to new information?A. safety stockB. safety timeC. bills of materialD. time fencesE. fixed-period lot sizingD86. Comparing known and expected capacity requirements wi th projected capacity availability is the job of _______.A. planned releasesB. load reportsC. lot sizingD. work loadingE. time fencingB87. ERPs primary value comes from applications ________.A. deploymentB. developmentC. interfacesD. integrationE. networkingD88.Net requirements for component J are as follows 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?A. 60 unitsB. 120 unitsC. 180 unitsD. Cannot be determinedE. None of the aboveE89. Net requirements for component J are as follows 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?A. 60B. 100C. 160D. Cannot be determinedE. None of the aboveB