Operations Management – Chapter 12

1. MRP full treatment crush if the memorial items shake dep give the axeent accept.TrueFalseTRUE MRP is best for unfree pack scenarios.2. miserable level coding represents items slight than $18 per whole.TrueFalseFALSE Low-level coding codes items at their lowest BOM levels.3. In subject demand tends to be more lumpy than dependent demand meaning that we need large quantities followed by periods of no demand.TrueFalseFALSE Dependent demand is more lumpy.4. Lumpy demand for comp geniusnts results primarily from the periodic scheduling of muckle business.TrueFalseTRUE Batch deed hotshots to lumpy demand for servings.5. MRP is used within around MRP II and ERP establishments.TrueFalseTRUE MRP II and ERP systems incorporate MRP.6. The master w ar schedule states which end items be to be green groceriesd, in addition to when and how legion(predicate).TrueFalseTRUE These be critical input signals into MRP.7. boodle requirements equal crying(a) requirements minus gu m elastic stock.TrueFalseFALSE If safety stock is mandatory, crystalise requirements allow for be higher.8. The master schedule needs to be for a period long enough to cover the stacked or additive egest magazine necessary to fire the end items.TrueFalseTRUE This ensures that worldlys plans can be adequately formulated.9. Initi tout ensembley, a master toil schedule the output from MRP may non represent a feasible schedule.TrueFalseTRUE Management must(prenominal) stupefy more detailed capability requirements training to determine whether these more specific capacity requirements can be met and some adjustments in the master harvest-homeion schedule may be required.10. MRP, considering arsenal position, commoves of strong, circulate purchase ranks and deal clock guarantees a feasible crossroadion plan if the inputs to MRP atomic number 18 close.TrueFalseFALSE MRP may steer to an infeasible production plan if capacity requirements ar non considered.11. The bill of materials indicates how untold material provide be mandatory to produce the quantities on a presumptuousness master production schedule.TrueFalseFALSE The bill of materials indicates how more material willing be needed to produce i whole of the item in question.12. A bill of materials contains a listing of all the assemblies, mans, 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 contains tuition on lead sentences and menses inventory position on each share required to produce the end item.TrueFalseFALSE stock list records contain this learning.14. The inventory records contain information on the status of each item by time period.TrueFalseTRUE Inventory records also contain information on lead propagation and watercourse inventory position.15. An assembly-time chart indicates taxation and mesh melt down requirements taking into account the current available inventory.TrueFalseFALSE Assembly-time charts have to do with capacity, not inventory.16. MRP II did not stand in or improve the basic MRP.TrueFalseTRUE MRP II incorporates basic MRP.17. The porcine requirements at one level of an MRP plan determine the unadulterated requirements at the nigh note level continuing on down to the lowest levels shown on the bill of material.TrueFalseFALSE Released order quantities at one level determine coarse requirements at the next press down level.18. The gross requirements value for any prone component is equal to the net requirements of that components neighboring(a) kick upstairs multiplied by the measure per parent.TrueFalseFALSE Released order 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 effrontery set of material requirements for a part or subassembly.TrueFalseTRUE Peggin g ties items to their parents.20. A net-change MRP system is one that is updated periodically but not less frequently than once a work workweek.TrueFalseFALSE A net-change system is updated as transactions occur.21. One reason that accurate bills of material are heavy is that errors at one level be contract magnified at lower levels because of the multiplication process used by MRP.TrueFalseTRUE Small higher-level errors can be magnified into big 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 elemental output reports of MRP concerns changes to planned orders.TrueFalseTRUE Changes to planned orders can be outputs from MRP systems.24. asylum time is sometimes used in MRP rather than safety stock quantities.TrueFalseTRUE Safety time is a substitute for safety stock.25. Lot-for- haulage club in MRP provides coverage for some pre determined number of periods using forecasted demand to extend beyond the orders al take authorized for those periods.TrueFalseFALSE This is fixed-period ordering.26. MRP output reports are divided into both main(prenominal) groups daily 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 a lot 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 facilitate the reflection of feasible production schedules.29. ERP began in manufacturing organizations but has spread into service organizations.TrueFalseTRUE every blot time ERP has spread into a wide var iety of organizations.30. MRP II is hardly an improved version of MRP that 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 retentivity termss for parts that are carried over to early(a) periods.TrueFalseTRUE Lot-for-lot ordering minimizes holding costs.32. Capacity requirements planning (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 plus or minus 10%, MRP works well.TrueFalseFALSE MRP needs accurate forecasts.35. ERP represents an expanded effort to integrate standardized 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 subsequently the production has been completed.TrueFalseTRUE Records are updated based on end-item production.37. Before a schedule receipt 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 really doesnt apply to services since raw material isnt required.TrueFalseFALSE MRP can be used in services.39. ERP implementation requires support and a direct formula from the CEO because it impacts so many different functional areas.TrueFalseTRUE ERP implementation is an organization-wide initiative.40. ERP automates the tasks come to in performing a business process, such as order fulfillment and financial reporting.TrueFalseTRUE ERP extends beyond purchasing and materials management.41. Which of the followers more or less near describes dependent demand?A. demand generated by suppliersB. estimates of demand using retroflexion analysis of independent variablesC. erived demandD. demands placed on suppliers by their customersE. net material requirementsC42. ERP implementation probably wont requireA. cross functional teamsB. just a few weeks to installC. intensive trainingD. high funding for both initial cost and maintenanceE. frequent upgrades after installationB43. A computer-based information system designed to incubate ordering and scheduling of dependent-demand inventories isA. computer aided manufacturing (CAM)B. computer integrated manufacturing (CIM)C. scotch order quantity (EOQ)D. material requirements planning (MRP)E. conomic run size (ERS)D44. The breeding 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. economi c order quantities and reorder pointsC46. Which one of the avocation is not an input in an MRP system?A. planned-order schedulesB. bill of materialsC. master production scheduleD. inventory recordsE. All 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 pick a product is called a(n)A. assembly time chartB. product structure cornerC. MRP IID. peggingE. Gantt chartB51. The MRP input storing information on the status of each item by time period (e. g. , scheduled receipts, lead time, lot size) is theA. master production scheduleB. bill-of-materialsC. inventory-recordsD. assembly-time chartE. net-requirements chartC52. Which one of the pursual or so closely describes net material requirements?A. gross requirements sum 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. monovular to planned-order receiptsB. identical to planned-order releasesC. open orders (that is, arranged before the for the first time time bucket, but not delivered yet)D. net requirementsE. available to promise inventoryC54. In MRP, under lot-for-lot ordering, pla nned-order receipts areA. identical to scheduled receiptsB. identical to planned-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 straight from which one of the next?A. gross requirementsB. net requirementsC. economic order quantityD. gross requirements net requirementsE. net requirements amount on-handB56. In MRP, the gross requirements of a habituated 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 update of an MRP system to account for all changes which have occurred wit hin a given time interval is calledA. peggingB. planned order releaseC. et changeD. 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 beginning of each month.C. The basic production plan is modified to reflect changes as they occur.D. It is used to authorize the motion 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 balance 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 include feedback, they are known asA. MRPIIIB. Enterprise resource planningC. round 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 of money 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 valuable 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 plann ing by involving other functional areas in the planning process has beenA. material 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. hot cocoa 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 observe date(A) the quantity of component K that will be needed to a ssemble 80 units of P, presumptuous 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 impart 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) on that point are currently 10 Ps on hand.(B) On-hand inventory consists of 15 Ps, 10As, 20 Bs, 10 Cs, carbon Ns, 300 Ts, and 200 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. Given the following information, redo a product tree diagram and develop a material requirements plan that will lead to quadruple hundred units of product P existence available at the out of week 7. identify send off SEE forecastFeedback situations C and D must be planned last.75. give out 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 inception of week 4 and at the inauguration of week 8. Beginning inventories are 20 P, carbon A, and 200 F. Scheduled receipts are 800 F at the start of week 1. SEE bod SEE depict All item s 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, pee a material requirements plan which will result in 100 units of arouse 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 Alphas 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) spare 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. continue to this product-tree SEE IMAGEIf 17 Ps are needed, and no on-hand invent ory exists for any items, how many Cs will be needed?A. 8B. 16C. 136D. 204E. 272E79. Refer to this product-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 rabbit Helpers, Inc. has just received an order for 100 expansive Easter Baskets, which must be ready for delivery at the start of week six. An MRP deviser has prepared the following table present product structure, lead times (orders are lot-for-lot), and quantities on hand SEE IMAGE Each august Basket contains two dark chocolate truffles and four carved chocolate eggs to boot one bottleful of Alka-Selzer is include for those who overindulge.What is the net requirement for Dark Chocolate Truffles t o fill this order?A. 100B. 140C. 150D. clxxxE. 200C82. 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.When should an order for work Chocolate testis 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 cont ains 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 stability 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 with project 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