Question 1

Which of the following statements is true with regard to DRP?

Accepted Answer

A) DRP is a push system because we start with the earliest stage in production and push products to the customer. 
B) DRP is a pull system because demand at the retail level pulls inventory and shipments through the supply chain. 
C) DRP is a push system because we make extensive use of demand forecasts to determine our capacity requirement. 
D) DRP is a pull system because we start with the earliest stage in production. 
A) DRP is a push system because we start with the earliest stage in production and push products to the customer. 
B) DRP is a pull system because demand at the retail level pulls inventory and shipments through the supply chain. 
C) DRP is a push system because we make extensive use of demand forecasts to determine our capacity requirement. 
D) DRP is a pull system because we start with the earliest stage in production.

Question 2

A process that enables a company to analyze the capabilities of its operation system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is ______.

Accepted Answer

A) material resource planning (MRP) 
B) capacity requirements planning (CRP) 
C) distribution requirements planning (DRP) 
D) enterprise resource planning (ERP) 
A) material resource planning (MRP) 
B) capacity requirements planning (CRP) 
C) distribution requirements planning (DRP) 
D) enterprise resource planning (ERP)

Question 3

Which of the following statements is FALSE about lot splitting?

Accepted Answer

A) It compresses lead times. 
B) It reduces overloads. 
C) It splits single lot into multiple sublots. 
D) It increases lead times. 
A) It compresses lead times. 
B) It reduces overloads. 
C) It splits single lot into multiple sublots. 
D) It increases lead times.

Question 4

The ______ systems used in health care serve a similar function to organizations employing EPR systems.

Accepted Answer

A) electronic medical records 
B) emergency medical records 
C) enterprise medical records 
D) expert medical records 
A) electronic medical records 
B) emergency medical records 
C) enterprise medical records 
D) expert medical records

Question 5

The process of setting loading limits on the amount of load assigned to each work center per period is ______.

Accepted Answer

A) finite loading 
B) infinite loading 
C) capacity loading 
D) work center loading 
A) finite loading 
B) infinite loading 
C) capacity loading 
D) work center loading

Question 6

In capacity requirements planning,we project or estimate ______.

Accepted Answer

A) the level of demand for each product that we are planning to produce 
B) resource requirements for labor,equipment,and other production needs 
C) the quantity of finished product to be stored in different distribution centers 
D) the activities at each workstation to balance workload 
A) the level of demand for each product that we are planning to produce 
B) resource requirements for labor,equipment,and other production needs 
C) the quantity of finished product to be stored in different distribution centers 
D) the activities at each workstation to balance workload

Question 7

Which of the following statements about MRP II is true?

Accepted Answer

A) When it was introduced,MRP II did not have any provision for feedback. 
B) It was introduced in the 1990s. 
C) It was introduced to replace CRP. 
D) It is replaced by DRP. 
A) When it was introduced,MRP II did not have any provision for feedback. 
B) It was introduced in the 1990s. 
C) It was introduced to replace CRP. 
D) It is replaced by DRP.

Question 8

The ______ system has a provision for feedback that enables plans generated by the system to be checked and adjusted.

Accepted Answer

A) open loop MRP 
B) semi-open loop MRP 
C) closed loop MRP 
D) open loop CRP 
A) open loop MRP 
B) semi-open loop MRP 
C) closed loop MRP 
D) open loop CRP

Question 9

Which of the following is NOT a benefit of the DRP system?

Accepted Answer

A) efficient inventory management 
B) cost-efficient production process 
C) unavailability of stock 
D) meeting promised due dates 
A) efficient inventory management 
B) cost-efficient production process 
C) unavailability of stock 
D) meeting promised due dates

Question 10

Which of the following is NOT an application included in the supply chain management module in an ERP system?

Accepted Answer

A) demand management 
B) distribution management 
C) inventory management 
D) price management 
A) demand management 
B) distribution management 
C) inventory management 
D) price management

Question 11

The following is data that can be entered into the ______ system: customer order entry,ripples through the enterprise changing inventory,production schedules,accounts payable,balance sheet,materials reordering,and shipping schedules.

Accepted Answer

A) manufacturing resource planning (MRP) 
B) manufacturing resource planning (MRP II) 
C) enterprise resource planning (ERP) 
D) distribution requirements planning (DRP) 
A) manufacturing resource planning (MRP) 
B) manufacturing resource planning (MRP II) 
C) enterprise resource planning (ERP) 
D) distribution requirements planning (DRP)

Question 12

If it is not possible to increase capacity,then ______.

Accepted Answer

A) the master schedule needs to be revised 
B) marketing efforts need to be reduced 
C) prices have to be increased (so less product will be demanded) 
D) a new facility will have to be built to meet the demand 
A) the master schedule needs to be revised 
B) marketing efforts need to be reduced 
C) prices have to be increased (so less product will be demanded) 
D) a new facility will have to be built to meet the demand

Question 13

Improved on-time delivery,improved quality performance,and improved supplier relations are benefits of ______ on supply chain performance.

Accepted Answer

A) service ERP systems 
B) MRP systems 
C) MRP II systems 
D) DRP systems 
A) service ERP systems 
B) MRP systems 
C) MRP II systems 
D) DRP systems

Question 14

The division of a single lot into two or more sublots and the simultaneously processing of each sublot on identical (or very similar)work centers as separate lots is called ______.

Accepted Answer

A) lot splitting 
B) finite loading 
C) infinite loading 
D) batch manufacture 
A) lot splitting 
B) finite loading 
C) infinite loading 
D) batch manufacture

Question 15

Which of the following is a limitation of the ERP systems?

Accepted Answer

A) reduction in operating and administrative costs 
B) creation of functional boundaries causing problems of accountability and confusion about the lines of responsibility 
C) reduction in production and delivery lead times 
D) provision of a real-time,enterprise-wide view of the business for faster and more effective decision-making 
A) reduction in operating and administrative costs 
B) creation of functional boundaries causing problems of accountability and confusion about the lines of responsibility 
C) reduction in production and delivery lead times 
D) provision of a real-time,enterprise-wide view of the business for faster and more effective decision-making

Question 16

The CRP system converts tentative planned shop orders into standard hours of load by ______.

Accepted Answer

A) assessing the levels of inventory of finished product,given the availability of raw materials 
B) multiplying each period's production quantity requirements by standard labor or equipment requirements per unit,or both 
C) averaging the availability of resources per production hour 
D) basing the calculations on the production volume from the preceding production period 
A) assessing the levels of inventory of finished product,given the availability of raw materials 
B) multiplying each period's production quantity requirements by standard labor or equipment requirements per unit,or both 
C) averaging the availability of resources per production hour 
D) basing the calculations on the production volume from the preceding production period

Question 17

Business in the ______ sector have to first assess their operations' needs before selecting a specific ERP package.

Accepted Answer

A) manufacturing 
B) service 
C) mining 
D) hospitality 
A) manufacturing 
B) service 
C) mining 
D) hospitality

Question 18

The process that enables a company to analyze the capabilities of its operations system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is called ______.

Accepted Answer

A) capacity requirements planning (CRP) 
B) manufacturing resource planning (MRP II) 
C) enterprise resource planning (ERP) 
D) distribution requirements planning (DRP) 
A) capacity requirements planning (CRP) 
B) manufacturing resource planning (MRP II) 
C) enterprise resource planning (ERP) 
D) distribution requirements planning (DRP)

Question 19

Two hundred fifty units of Component X are scheduled for production.Each unit of X requires labor standard time of 2 hours per unit and machine standard time of 1 hour per unit.The standard machine hours of load requirements are ______.

Accepted Answer

A) 250 
B) 500 
C) 400 
D) 350 
A) 250 
B) 500 
C) 400 
D) 350

Question 20

The DRP process typically begins ______.

Accepted Answer

A) at an intermediate point in the production process and then spreads outward 
B) at the retail level (the farthest point of the outbound supply chain network) 
C) at the supplier level (the point where resources are procured) 
D) at the production design process 
A) at an intermediate point in the production process and then spreads outward 
B) at the retail level (the farthest point of the outbound supply chain network) 
C) at the supplier level (the point where resources are procured) 
D) at the production design process

Exam 22: Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Which of the following statements is true with regard to DRP?

A process that enables a company to analyze the capabilities of its operation system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is ______.

Which of the following statements is FALSE about lot splitting?

The ______ systems used in health care serve a similar function to organizations employing EPR systems.

The process of setting loading limits on the amount of load assigned to each work center per period is ______.

In capacity requirements planning,we project or estimate ______.

Which of the following statements about MRP II is true?

The ______ system has a provision for feedback that enables plans generated by the system to be checked and adjusted.

Which of the following is NOT a benefit of the DRP system?

Which of the following is NOT an application included in the supply chain management module in an ERP system?

The following is data that can be entered into the ______ system: customer order entry,ripples through the enterprise changing inventory,production schedules,accounts payable,balance sheet,materials reordering,and shipping schedules.

If it is not possible to increase capacity,then ______.

Improved on-time delivery,improved quality performance,and improved supplier relations are benefits of ______ on supply chain performance.

The division of a single lot into two or more sublots and the simultaneously processing of each sublot on identical (or very similar)work centers as separate lots is called ______.

Which of the following is a limitation of the ERP systems?

The CRP system converts tentative planned shop orders into standard hours of load by ______.

Business in the ______ sector have to first assess their operations' needs before selecting a specific ERP package.

The process that enables a company to analyze the capabilities of its operations system to determine whether the company has enough capacity to meet a proposed production schedule for a specified time frame is called ______.

Two hundred fifty units of Component X are scheduled for production.Each unit of X requires labor standard time of 2 hours per unit and machine standard time of 1 hour per unit.The standard machine hours of load requirements are ______.

The DRP process typically begins ______.

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

Master Scheduling and Material Requirements Planning

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters