ISDS DSM 14 Flashcards
Capacity planning in closed-loop MRP does not do which of the following?
a. Utilize feedback about workload
b. Adds in additional capacity
c. Smooth work center loads
b. Adds in additional capacity
Which of the following best describes a gross material requirements plan?
a. A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start.
b. A schedule showing which products are to be manufactured and in what quantities.
c. . An intermediate-range plan for the scheduling of families of products.
a. A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start.
Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacturer of Y is 1 week. The lead time for procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.
a. 6
b. 10
c. 8
c. 8
Which of the following is false concerning enterprise resource planning?
a. It shares common data and practices across the enterprise.
b. It is inexpensive to implement.
c. It provides and accesses information in a real-time environment.
b. It is inexpensive to implement.
Which of the following lot-sizing techniques results in the lowest holding costs?
a. Part period balancing
b. Lot-for-lot
c. Economic order quantity
b. Lot-for-lot
A paint company mixes ten different base colors into 3,000 different color options. If the MPS is organized around the ten different base colors, their bills of material are classified as:
a. planning
b. phantom
c. modular
c. modular
Which of the following statements regarding the gross material requirements plan is false?
a. It includes inventory on hand
b. It shows when an item must be ordered or when production must be started
c.It combines a master production schedule with the time-phased sche
a. It includes inventory on hand
If a load report (resource requirements profile) shows a work center scheduled beyond capacity, then __________.
a. the company must add capacity by enlarging the facility
b. the work center’s load may be smoothed
c. the aggregate plan must be revised
b. the work center’s load may be smoothed
Enterprise Resource Planning __________.
a. seldom requires additional software
b. does not integrate well with other functional areas beyond operations
c. automates and integrates the majority of business processes
c. automates and integrates the majority of business processes
Enterprise Resource Planning __________.
a. seldom requires additional software
b. does not integrate well with other functional areas beyond operations
c. automates and integrates the majority of business processes
c. automates and integrates the majority of business processes
All of the following are advantages of enterprise resource planning except it __________.
a, increases communication and collaboration between business units worldwide
b. can provide a strategic advantage over competitors’
c. requires additional training
c. requires additional training
Material requirements planning (MRP) does not consider __________.
a. time buckets
b. capacity
c. service organizations
b. capacity
Which of the following is not a key benefit of MRP?
a. Quality increases
b. Improved response to customers
c. Faster response to market changes
a. Quality increases
Firms making many different final products use __________ to facilitate production scheduling.
a. modular bills
b. planning bills
c. phantom bills
a. modular bills
Distortion in MRP systems can be minimized when safety stock is held at the __________.
a. work-in-process level
b. raw material level
c. any inventory point
b. raw material level
Effective use of MRP and other dependent demand models does not require which of the following?
a. Bill of materials
b. Cost of individual components
c. Lead times
b. Cost of individual components
Which of the following statements regarding MRP in services is true?
a. Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
b. MRP does not work well in services because there is little (or no) dependent demand.
c. MRP can be used in services, but only for those that offer little customization.
a. Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
In MRP, system nervousness is caused by __________.
a. management’s attempt to continually respond to minor changes in production requirements
b. the use of the lot-for-lot approach
c. management’s attempt to evaluate alternative plans before taking action
a. management’s attempt to continually respond to minor changes in production requirements
An item’s annual holding cost is $75. Each setup costs $100. Lead time is 2 weeks. Annual demand is 15,000.
The EOQ lot size quantity would be ___________.
a. 60
b. 72
c, 200
c, 200
The phrase “demand related to the demand for other products” describes __________.
a. dependent demand
b. a dependent variable
c. recursive demand
a. dependent demand
What lot-sizing technique is generally preferred when inventory holding costs are extremely high?
a. Part period balancing
b. Economic order quantity
c. Lot-for-lot
c. Lot-for-lot
The __________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
a. master production schedule
b. purchase order
c. bill of material
a. master production schedule
MRP II is accurately described as:
a. enhanced MRP that includes all elements of the supply chain
b. MRP software designed for services
c. MRP augmented by other resource variables
c. MRP augmented by other resource variables
A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a __________.
a. master production schedule
b. bill of material
c. planning bill
a. master production schedule
Which of the following is a step towards integrating MRP and finite capacity?
a. Using pegging
b. Using smaller buckets
c. Using time fences
b. Using smaller buckets
Linking a part requirement with a parent component that caused the requirement is referred to as:
a. pegging
b. net requirement planning
c. leveling
a. pegging
