EXAM 1 Flashcards
An ERP system is designed to provide the support for
coordinating decisions concurrent with planning and controlling the business.
Performance metrics to evaluate integrated system effectiveness:
utilize data from multiple functions
are enabled by an ERP system
benefit from real-time data availability
Which of the below is among the principle modules in an ERP system?
Sales and Marketing
Manufacturing Planning and Control
Human Resource Management
Demand management activities must conform to:
a.
the strategy of the firm
b. the capabilities of manufacturing c. the needs of customers d. All options are correct
Identifying all sources of demand is the principle task in
Demand Management
MPC emphasis remains the same even as the nature of the product, process, or both, changes.
False
One significant advantage that a firm gains from using an integrated ERP system is the ability to obtain current data on how the firm is performing.
True
ERP systems enable measuring integrated performance across functions such as
purchasing, manufacturing, sales and marketing, and supply chain management.
An ERP system provides a common platform for ___ data capture.
financial
In the MPC process, determination of the end-item (finished product) production schedule (MPS) is most likely to occur in which time horizon?
Intermediate
For companies that have repetitive manufacturing of standard products, MPS system is concerned with
assembly rate for end items (i.e. finished products)
Which of the following MPC system activity balances the sales/marketing plans with available production resources?
Sales and operations planning (SOP)
A typical ERP system is made up of functionally oriented units operating independently. T/F
False
The design and performance metrics for the ERP system must reflect the strategy, processes, and customer needs of the firm. T/F
True
Transaction processing relates to the posting and tracking of the activities that document the business. T/F
True
Since the scope of applications included in standard ERP packages is very large, a separate data warehouse is not needed to be employed. T/F
False
If the MPC system has remained unchanged for a significant length of time, it may no longer be appropriate to the company’s needs. T/F
True
The essential task of the MPC system is to determine customer preferences via extensive use of market research and focus groups. T/F
False
MPC systems provide the information upon which managers make effective decisions. T/F
True
As a product’s sales volume increases over time, the MPC emphasis might shift from ‘flow’ to ‘project’ in the MPC classification schema. T/F
False
Sales and Operations Planning aims to match supply to demand only at the product mix level. T/F
False
Different manufacturing processes often dictate the need for different designs of the MPC system. T/F
True
Matching strategic direction with MPC system design is
a dynamic element that shapes the MPC environment
The project approach to MPC is for products
that are unique with long-lead-times
Capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in which time horizon?
Long
Matching supply and demand in terms of volume, is a
front-end issue addressed by MPC
Configuration management is a critical step in MPC environments which is referred to as:
Assemble-to-Order
The difference between the pattern of demand and the response by the company points out the important distinction between
forecasts and plans
A key requirement for demand management communication with SOP is to provide
demand forecast information
When a firm has plans for building bicycles at a constant rate throughout the year, the demand for the wheels that are needed is referred to as
dependent demand
Physical distribution of finished goods is a key concern of demand management in MPC environments which is referred to as
Make-to Stock
The largest and the most complex module in an ERP system is
Manufacturing Planning and Control
Which term relates to the posting and tracking of activities that document a business?
Transaction processing
ERP system modules may be
purchased from one or more vendors
In the ATO environment, the primary task of demand management is to define inter and intracompany requirements.
False
The customer order decoupling point is the point at which demand switches from dependent to independent (or vice versa).
True
A key aspect of the management of the finished goods inventory is the determination of when, how much, and how to replenish the stock at a specific location.
True
Collecting and coordinating all potential demands on manufacturing capacity are performed within the demand management function of the firm.
True
Customer order decoupling point is sometimes called, the order penetration point.
True
The demands of customers are dependent demands.
False
Seasonal Index formula
Sales/Forecast
Forecasts are expected to be more accurate for
total sales
The amount of variability in demand will influence
magnitude of forecast errors
Among the options below, the lowest level of aggregation in forecasting is for
Master Production Scheduling
Average Percent Error is a measure of
forecast error magnitude
If the demand for an item is dependent, then the timing and quantities must be forecast. T/F
F
Mean Absolute Deviation (MAD) is a measure of forecast bias. T/F
F
When evaluating a forecasting model, if mean error is close to zero, Mean Absolute Deviation (MAD) must also be close to zero. T/F
F
Moving average techniques are useful for
smoothing out fluctuations in past data
When choosing a forecasting technique, a critical trade-off that must be considered is that between
cost of forecasting and cost of forecast errors
Which one of the following statements (about measures of forecast accuracy) is false?
Mean Absolute Deviation is a measure of forecast bias.
Pyramid forecasting is used for
ensuring consistency between the various sources of forecasts
The margin of error for forecasts of annual demand for a product will be smaller compared to the margin of error for forecasts of monthly demand if
Demand is independent from month to month
Proposals to develop a new product line requires forecasts that are
long-term
If Y = a + bX represents the regression equation used for forecasting, b can be negative. T/F
T
When using linear regression forecasting, it is possible to derive seasonal indices when past demand displays a seasonal pattern. T/F
T
Seasonal influence may be multiplicative or additive. T/F
T
In time-series regression, time is the dependent variable. T/F
F
The purpose of pyramid forecasting is to manage day-to-day variations in demand. T/F
F
Forecasts generated by methods that rely on past data do not require inclusion of external information about future events that may influence demand. T/F
F
The sum of seasonal indices should equal the number of seasons (except slight for difference due to rounding). T/F
T
