Question 1

Budget overruns when implementing ERP systems are typically caused by:

Accepted Answer

A) high equipment costs. 
B) high capital interest charges. 
C) the cost of the ERP software 
D) high training costs 
E) the software supports the companies business processes 
A) high equipment costs. 
B) high capital interest charges. 
C) the cost of the ERP software 
D) high training costs 
E) the software supports the companies business processes

Question 2

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?

Accepted Answer

A) Pegging 
B) Safety stock 
C) Increased order sizes 
D) Safety time 
E) Low-level coding 
A) Pegging 
B) Safety stock 
C) Increased order sizes 
D) Safety time 
E) Low-level coding

Question 3

Which action would not be undertaken if capacity requirements planning (CRP)indicate one or more work stations are projected to be under loaded or over loaded?

Accepted Answer

A) Shifting some orders to adjacent periods. 
B) Transferring employees from other areas. 
C) Scheduling overtime. 
D) Revise the MPS and MRP. 
E) Re-run the load report using different values. 
A) Shifting some orders to adjacent periods. 
B) Transferring employees from other areas. 
C) Scheduling overtime. 
D) Revise the MPS and MRP. 
E) Re-run the load report using different values.

Question 4

In MRP processing the difference between a planned-order release and the planned-order receipt is:

Accepted Answer

A) level of safety stock. 
B) scheduled receipts of open orders. 
C) timing as per the lead time. 
D) a one is a forecast and the other is actual. 
E) the level of net requirements. 
A) level of safety stock. 
B) scheduled receipts of open orders. 
C) timing as per the lead time. 
D) a one is a forecast and the other is actual. 
E) the level of net requirements.

Question 5

A report that compares known and expected future capacity requirements with projected available capacity is a:

Accepted Answer

A) master production schedule. 
B) bill of material report. 
C) inventory status report. 
D) MRP schedule. 
E) load report. 
A) master production schedule. 
B) bill of material report. 
C) inventory status report. 
D) MRP schedule. 
E) load report.

Question 6

Fixed-interval ordering in MRP places orders that cover a predetermined number of periods.

Accepted Answer

A) True 
 B)False

Question 7

The development and application of MRP is primarily associated with two developments: (1)managers recognizing the need to differentiate between independent and dependent demand,and (2)___________.

Accepted Answer

A) increased reliance on computers for record keeping 
B) development of the EOQ model 
C) the need for inventory control systems 
D) the emergence of ERP systems 
E) accounting systems 
A) increased reliance on computers for record keeping 
B) development of the EOQ model 
C) the need for inventory control systems 
D) the emergence of ERP systems 
E) accounting systems

Question 8

The master production schedule (MPS)states which product components are to be produced.

Accepted Answer

A) True 
 B)False

Question 9

The master production schedule (MPS)states which end items are to be produced.

Accepted Answer

A) True 
 B)False

Question 10

The emergence of ERP systems was primarily because they are less complex to use than MRP systems.

Accepted Answer

A) True 
 B)False

Question 11

The three basic inputs of MRP are: 1)the bill of material; 2)inventory on hand,open orders and lead times; and 3)planned order releases.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are not primary reports provided by MRP systems?

Accepted Answer

A) Planned order releases 
B) Immediate order releases 
C) Demand history reports 
D) Changes to open orders 
A) Planned order releases 
B) Immediate order releases 
C) Demand history reports 
D) Changes to open orders

Question 13

MRP II involves an expanded approach to production planning and scheduling than MRP.

Accepted Answer

A) True 
 B)False

Question 14

Given an order cost of $100,a,per period holding cost of $.50,and the following requirements schedule:   For which period will the second order be submitted using the part period lot sizing method?

Accepted Answer

A) Period 2 
B) Period 3 
C) Period 4 
D) Period 5 
E) Period 6 
A) Period 2 
B) Period 3 
C) Period 4 
D) Period 5 
E) Period 6

Question 15

Dependent demand is derived demand.

Accepted Answer

A) True 
 B)False

Question 16

For a given component in an MRP plan,under lot-for-lot ordering,planned order sizes are equal to net requirements.

Accepted Answer

A) True 
 B)False

Question 17

The following is a list of components required to produce one unit of end item P:
P: 2 A's,3 B's,3 C's
A: 5 M's,2 R's
B: 1 D,3 N's.
C: 1 T,4 N's
M: 1 N
Determine the number of N's that will be needed to make 60 P's in each of these cases:
(i)There are currently 10 P's on hand.
(ii)On-hand inventory consists of 15 P's,10A's,20 B's,10 C's,100 N's,300 T's,and 200 M's.

Accepted Answer

(i) @#IMG-DLM&_TB6896_00 (ii)45 P's needed.A leg:

Question 18

The input used in MRP that lists the assemblies,subassemblies,parts,and raw materials needed to produce one unit of finished product is the:

Accepted Answer

A) master production schedule. 
B) bill of material. 
C) inventory-records. 
D) assembly-time chart. 
E) net-requirements chart. 
A) master production schedule. 
B) bill of material. 
C) inventory-records. 
D) assembly-time chart. 
E) net-requirements chart.

Question 19

The MRP approach that immediately updates only those records directly affected by a change is referred to as a(n):

Accepted Answer

A) regenerative MRP. 
B) batch-type MRP. 
C) Plossl-Wright system. 
D) net-change MRP. 
E) gross-change MRP. 
A) regenerative MRP. 
B) batch-type MRP. 
C) Plossl-Wright system. 
D) net-change MRP. 
E) gross-change MRP.

Question 20

MRP usually involves inventory items that have independent demand.

Accepted Answer

A) True 
 B)False

Exam 20: Material Requirements Planning and Enterprise Resource Planning

Budget overruns when implementing ERP systems are typically caused by:

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?

Which action would not be undertaken if capacity requirements planning (CRP)indicate one or more work stations are projected to be under loaded or over loaded?

In MRP processing the difference between a planned-order release and the planned-order receipt is:

A report that compares known and expected future capacity requirements with projected available capacity is a:

Fixed-interval ordering in MRP places orders that cover a predetermined number of periods.

The development and application of MRP is primarily associated with two developments: (1)managers recognizing the need to differentiate between independent and dependent demand,and (2)___________.

The master production schedule (MPS)states which product components are to be produced.

The master production schedule (MPS)states which end items are to be produced.

The emergence of ERP systems was primarily because they are less complex to use than MRP systems.

The three basic inputs of MRP are: 1)the bill of material; 2)inventory on hand,open orders and lead times; and 3)planned order releases.

Which of the following are not primary reports provided by MRP systems?

MRP II involves an expanded approach to production planning and scheduling than MRP.

Given an order cost of $100,a,per period holding cost of $.50,and the following requirements schedule: For which period will the second order be submitted using the part period lot sizing method?

Dependent demand is derived demand.

For a given component in an MRP plan,under lot-for-lot ordering,planned order sizes are equal to net requirements.

The input used in MRP that lists the assemblies,subassemblies,parts,and raw materials needed to produce one unit of finished product is the:

The MRP approach that immediately updates only those records directly affected by a change is referred to as a(n):

MRP usually involves inventory items that have independent demand.

Introduction to Operations Management

Competitiveness, strategic Planning, and Productivity

Demand Forecasting

Product Design

Reliability

Strategic Capacity Planning

Decision Analysis

Process Design and Facility Layout

Linear Programming

Workjob Design

Learning Curves

Location Planning and Analysis

the Transportation Model

Management of Quality

Statistical Quality Control

Acceptance Sampling

Supply Chain Management

Inventory Management

Aggregate Operations Planning and Master Scheduling

Just-In-Time and Lean Production

Maintenance

Job and Staff Scheduling

Project Management

Waiting-Line Analysis

Simulation

Filters