Deck 6: Resource Planning Systems

Question 1

According to the text,a firm should always run its operations at 100 percent capacity to ensure changes affecting demand can be met.

Answer 1

False

Question 2

The resource and operations planning done by operations managers is intended to balance capacity and output.

Answer 2

True

Question 3

A Master Production Schedule is a medium-range materials plan.

Answer 3

True

Question 4

MRP systems are simply a more modern version of the ERP systems of the 1980's.

Question 5

Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.

Question 6

When a single company that is implementing an ERP system chooses to use one company to provide an operations module,another to provide the sales and marketing application,and yet another company to provide the finance and accounting module,that single company has chosen to utilize the best-of-breed solution.

Question 7

A Mixed Production Strategy uses a blend of chase and level strategies by striving to maintain a stable core workforce while using other means like temporary workers to manage short-term high demand.

Question 8

Lead Capacity Strategy is a proactive approach that adds or subtracts capacity in anticipation of future market conditions and demand.

Question 9

Organizations that choose to discontinue use of old and inefficient computer and information systems in favor of adopting a modern ERP system are said to have implemented a decentralized database solution.

Question 10

System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.

Question 11

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy,the level production strategy,and the mixed production strategy.

Question 12

According to the text,the goal of resource planning is to minimize the discrepancy between an organization's capacity and demand results.

Question 13

Two reasons ERP implementations have been known to fail include: lack of employee training on the new ERP system and lack of adequate resources to support these complex and time consuming implementations.

Question 14

Key requirements to a successful ERP implementation include adequate computer support,accurate system inputs,and flexible business processes that can conform to the approaches used in the ERP software logic.

Question 15

According to the text,resource planning is the process of determining the production capacity required to meet demand.

Question 16

The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP Implosion.

Question 17

An MRP system has a subassembly with a lot size of 100 units.In terms of filling future requirements,this would mean that planned order releases for the subassembly would always have to be exactly 100 units.

Question 18

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern.

Question 19

Computer and information technologies MRP has evolved to become closed-loop MRP which can now take into account APP,MPS,and CRP.

Question 20

MRP is the production planning system intended to develop long-range plans (more than a year away)concerning product families manufactured by the organization.

Question 21

The acronym ERP is short for:

A) Enterprise Resource Planning
B) Electronic Resource Provider
C) Executive Resource Plan
D) Electronic Requirements Provider

Question 22

Which of the following MRP terms represents a committed order awaiting delivery for a specific period?

A) Projected on-hand inventory
B) Time bucket
C) Net requirement
D) Scheduled receipt

Question 23

The goal of resource planning is to minimize the discrepancy between capacity and:

A) Resources
B) Demand
C) Workload
D) Supply

Question 24

Which of the following consists of different products that share similar characteristics,components or manufacturing processes?

A) Resource tree
B) Product family
C) Dependant allocation
D) Implosion factor

Question 25

While ERP is a relatively new technology,it has grown rapidly since the early 1990s.Which of the following is the reason that has contributed to its rapid growth?

A) The year 2000 millennium bug
B) The trend for companies to eliminate their supply chain partners
C) The increased use of email during the 1990's
D) All of these

Question 26

Which of the following is a Long Range Materials Plan:

A) Aggregate Production Plan
B) Master Capacity Plan
C) Materials Requirements Plan
D) Capacity Requirements Plan

Question 27

Which of the following could be considered a master production schedule for a service firm?

A) The reservation book utilized by a restaurant
B) The employee shift schedule utilized by an auto shop
C) A hospital patient's personal information fill
D) The recipe book utilized by a chef at a restaurant

Question 28

Which number should be placed in the spot presently filled with the X?

A) 50
B) 75
C) 10
D) 20

Question 29

Which of the following is considered an advantage/benefit of utilizing in ERP system?

A) Utilizes multiple databases in order to provide up-to-date information
B) Increases the privacy level within an organization, thus functional departments can more easily protect their data from supporting or dependent functional departments
C) Allows organizations to more easily communicate information about operational changes to supply chain members
D) Increases the bullwhip effect

Question 30

Which number should be placed in the spot presently filled with the X?

A) 20
B) 5
C) 45
D) 35

Question 31

Which number should be placed in the spot presently filled with the X?

A) 20
B) 5
C) 10
D) 15

Question 32

Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities?

A) Discrete available-to-promise
B) Cumulative available-to-promise without looking ahead
C) Indiscrete available-to-promise
D) Cumulative available-to-promise with looking ahead

Question 33

Which of the following basic production strategies used for addressing the aggregate planning problem would work best with make-to-order manufacturing firms?

A) Capacity Production Strategy
B) Chase Production Strategy
C) Level Production Strategy
D) Backlog Production Strategy

Question 34

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?

A) Master Production Schedule
B) Bill of Materials
C) Distribution Requirement Plan
D) Resource Requirement Plan

Question 35

Which of the following MRP terms represents the parts demanded by a parent?

A) Gross requirement
B) Component
C) Net requirement
D) Scheduled receipt

Question 36

Which of the following is considered an advantage/benefit of utilizing an ERP system?

A) Fairly inexpensive to purchase and implement
B) Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry.
C) Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model
D) All of these

Question 37

In a bill of materials,items at which level are independent demand items?

A) Level 0
B) Level 1
C) Level 2
D) Level 3

Question 38

Which number should be placed in the spot presently filled with the X?

A) 10
B) 15
C) 30
D) 60

Question 39

Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?

A) RRP
B) MPS
C) RCCP
D) MRP

Question 40

To check the feasibility of the Master Production Schedule,one would look to:

A) Rough-Cut Capacity Plan
B) Material Requirement Plan
C) Capacity Requirement Plan
D) Distribution Requirement Plan

Question 41

Your boss just came to the lunch.During the lunch he had a discussion with some business partners concerning modern organizational information systems.
The boss' basic question to you was,"Do you think our company needs an ERP system?" Obviously,without knowing the details of this company or the industry in which it operates,it would be difficult to provide a detailed answer to this question.
Your new project may take days,weeks,or even months to answer accurately,but before you begin your research you should develop a short but detailed outline for a paper that will inform the boss about the basics of ERP,the advantages of ERP,as well as the disadvantages of ERP.
Answer some of these questions within your outline/answer:
•What is ERP?
•Why should the organization get an ERP system?
•Why might the organization not want to get ERP?
•If we did get an ERP system what would be required for successful implementation?

Question 42

What is ERP? Why was it developed?

Question 43

Briefly define the following six terms as they apply to MRP.
1.Parent
2.Gross Requirement
3.Scheduled Receipt
4.Planned Order Release
5.Lot-size
6.Projected on Hand Inventory

Question 44

Organizations that choose to implement the best applications or modules for each of the different functional departments associated with the supply chain versus choosing to implement one single system with all of the desired applications from a single vendor is said to have chosen a(n):

A) Best-of-breed solution
B) Elite integrator solution
C) Multi-modular solution
D) Premier application solution

Question 45

Not all ERP software is designed to provide the exact same tools,nonetheless,some of the common modules usually included in ERP software packages include:

A) Customer Relationship Management and human resource management
B) Human resource management and accounting and finance
C) Supplier relationship management and customer relationship management
D) All of these

Question 46

Organizations that choose to implement one single system with all of the desired applications from a single vendor versus choosing to implement the best applications or modules for each of the different functional departments associated with the supply chain is said to have chosen a(n):

A) Best-of-breed solution
B) Elite integrator solution
C) Single integrator solution
D) Premier application solution

Question 47

According to the textbook,which of the following is considered a reason that ERP implementations fail?

A) The organization may lack the necessary workforce and expertise to properly implement the system
B) Top management becomes overcommitted to the point where they constantly encourage the employees during implementation
C) Organizations tend to spend too much time and money training their employees on the new system
D) All of these

Question 48

Complete the Projected on hand inventory Row

Question 49

Which of the following is NOT a common module of ERP systems?

A) Human Resources Management
B) Customer Relationship Management
C) Marketing Resources Management
D) Supply Chain Management

Question 50

List and define the three basic production methods used to complete the aggregate plan.

Question 51

What does that mean if your organization has chosen to adopt a best-of-breed solution?

Question 52

This chapter discussed both materials planning and capacity planning.Consider those concepts in answering the following questions:
1.Which is more appropriate for a conventional service organization? Why?
2.Which is more appropriate for a conventional manufacturing organization? Why?
3.What are the three hierarchical components of materials planning? Provide a brief description of each.
4.What are the three hierarchical components of capacity planning? Provide a brief description of each.