Question 1

A resource planning process takes

Accepted Answer

A)  sales and operation plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
B)  buying and production plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
C)  marketing and distribution plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
D)  modelling and branding plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
A)  sales and operation plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
B)  buying and production plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
C)  marketing and distribution plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. 
D)  modelling and branding plan; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. A

Question 2

________ is an inventory control and scheduling technique that applies MRP principles to distribution inventories.

Accepted Answer

Distribution requirements planning
DRP

Question 3

An intermediate item is a subassembly.

Accepted Answer

A) True 
 B)False  True

Question 4

What are the key inputs to an MRP system?

Accepted Answer

The key inputs are t

Question 5

The underlying logic for level-by-level processing in an MRP system is

Accepted Answer

A)  each item in a bill of material must be processed from the bottom up. 
B)  items without safety stock quantities must be processed before items that have safety stocks greater than zero. 
C)  items must be processed in order of increasing lead time. 
D)  all parents of an item must be processed before that item is processed. 
A)  each item in a bill of material must be processed from the bottom up. 
B)  items without safety stock quantities must be processed before items that have safety stocks greater than zero. 
C)  items must be processed in order of increasing lead time. 
D)  all parents of an item must be processed before that item is processed.

Question 6

Timed phased product structure,unlike Bill of materials,adds the concept of lead times.

Accepted Answer

A) True 
 B)False

Question 7

Table 13.6
  
-Use the information from Table 13.6.If the lot-sizing rule were L4L instead of FOQ = 30 units,what would be the planned order release quantity week 1?

Accepted Answer

A)  0 units 
B)  10 units 
C)  20 units 
D)  40 units 
A)  0 units 
B)  10 units 
C)  20 units 
D)  40 units

Question 8

MRP II ties MRP to the company's financial system.

Accepted Answer

A) True 
 B)False

Question 9

Table 13.7
  
-Use the information from Table 13.7.If a FOQ of 75 units is used,how many planned order releases are there for item XYZ?

Accepted Answer

A)  0 or 1 
B)  2 or 3 
C)  4 or 5 
D)  more than 5 
A)  0 or 1 
B)  2 or 3 
C)  4 or 5 
D)  more than 5

Question 10

An action bucket is the first week's entry of the planned order release row.

Accepted Answer

A) True 
 B)False

Question 11

MRP can be used to best advantage under which one of the following circumstances?

Accepted Answer

A)  when the item's demand depends only on customer demand 
B)  when the item's demand is uniform 
C)  when the item's demand is constant 
D)  when the item's demand depends on its parent's demand 
A)  when the item's demand depends only on customer demand 
B)  when the item's demand is uniform 
C)  when the item's demand is constant 
D)  when the item's demand depends on its parent's demand

Question 12

Faster response to market changes and reduced inventory levels are both benefits of MRP.

Accepted Answer

A) True 
 B)False

Question 13

Explain why MRP does a better job of estimating the need to replenish inventory items than does the fixed order quantity system in a dependent demand environment.

Accepted Answer

MRP works better for dependent demand en

Question 14

Table 13.3
Consider the following MPS, BOM, and inventory data. You will need a blank MRP record to answer the question(s).
Master Production Schedule: the following table shows the MPS start quantities.
Week
 $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { A } & 50 & & 80 & & & 100 \
\text { B } & & & & 60 & & 100 \
\hline
\end{array}$$ 
Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \
\hline \text { Lot-sizing rule } & \mathrm { L } A \mathrm {~L} & \mathrm {~L} A \mathrm {~L} & \mathrm { FOQ } = 250 & \text { POQ (P = } \
\text { Lead time (wks) } & 3 & 1 & 3 & 2 ) \
\text { Beginning (on-hand) } & 50 & 80 & 90 & 1 \
\text { inventory } & 80 ( \text { wk 1) } & \text { None } & 250 ( \text { wk } 3 ) & 30 \
\text { Scheduled receipts } & & & \text { wk 1) } \
\hline
\end{array}$$
-Use the information in Table 13.3.Which one of the following statements about item C is TRUE?

Accepted Answer

A)  It has a planned receipt of 80 units in week 3. 
B)  Its second planned order release is for 200 units in week 3. 
C)  It has a planned receipt of 180 units in week 6. 
D)  Its first planned order release is for 130 units in week 1. 
A)  It has a planned receipt of 80 units in week 3. 
B)  Its second planned order release is for 200 units in week 3. 
C)  It has a planned receipt of 180 units in week 6. 
D)  Its first planned order release is for 130 units in week 1.

Question 15

In MRP,a(n)________ is an item that may go through one or more operations to be transformed into or become part of one or more parents.

Accepted Answer

The answer of In MRP,a(n)________ is an item that may...

Question 16

Using a periodic order quantity generates a high level of average inventory because it creates inventory remnants.

Accepted Answer

A) True 
 B)False

Question 17

For items manufactured in-house,one component of lead time is processing time.

Accepted Answer

A) True 
 B)False

Question 18

________ systems are large,integrated information systems that support many enterprise processes and data storage needs.

Accepted Answer

Enterprise

Question 19

________ demand occurs because the quantity required is a function of the demand for the other items held in inventory.

Accepted Answer

The answer of ________ demand occurs because the quantity required...

Question 20

An action notice is a handwritten memo sent from the supervisor of the department to the line workers.

Accepted Answer

A) True 
 B)False

Exam 12: Resource Planning

A resource planning process takes

________ is an inventory control and scheduling technique that applies MRP principles to distribution inventories.

An intermediate item is a subassembly.

What are the key inputs to an MRP system?

The underlying logic for level-by-level processing in an MRP system is

Timed phased product structure,unlike Bill of materials,adds the concept of lead times.

Table 13.6 -Use the information from Table 13.6.If the lot-sizing rule were L4L instead of FOQ = 30 units,what would be the planned order release quantity week 1?

MRP II ties MRP to the company's financial system.

Table 13.7 -Use the information from Table 13.7.If a FOQ of 75 units is used,how many planned order releases are there for item XYZ?

An action bucket is the first week's entry of the planned order release row.

MRP can be used to best advantage under which one of the following circumstances?

Faster response to market changes and reduced inventory levels are both benefits of MRP.

Explain why MRP does a better job of estimating the need to replenish inventory items than does the fixed order quantity system in a dependent demand environment.

In MRP,a(n)________ is an item that may go through one or more operations to be transformed into or become part of one or more parents.

Using a periodic order quantity generates a high level of average inventory because it creates inventory remnants.

For items manufactured in-house,one component of lead time is processing time.

________ systems are large,integrated information systems that support many enterprise processes and data storage needs.

________ demand occurs because the quantity required is a function of the demand for the other items held in inventory.

An action notice is a handwritten memo sent from the supervisor of the department to the line workers.

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Capacity

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters