Deck 4: Production and Supply Chain Management Information Systems

Question 1

The initial fill rate measures the time needed for the supplier to fill the order.

Answer 1

False
The initial order lead time is the time needed for the supplier to fill the order.

Question 2

Demand Management is the process where sales forecasts are adjusted to incorporate the impact of marketing initiatives.

Answer 2

False
In the Demand Management step,the production plan is broken down into smaller time units,such as weekly or even daily production figures,to meet demand for individual products.

Question 3

After material requirements are entered into the system,the program automatically turns the planned orders into purchase orders without further input from planners.

Answer 3

False
Planning factors such as lead times are just estimates,so planners must evaluate the planned orders suggested by the materials requirements planning calculation before allowing the program to automatically turn them into purchase orders.

Question 4

Production planners aggregate products into product groups to make forecasts and plans more accurate.

Question 5

Rough-cut planning is a common term in manufacturing for aggregate planning.

Question 6

Another term for the list of ingredients required to make a product is the bill of materials.

Question 7

The cost it normally takes to manufacture a product,which is usually derived from historical data and any changes that have occurred since then,is known as a structured cost.

Question 8

Make to order items are produced to fill customer's requests.

Question 9

The MRP process determines the schedule of finished goods production.

Question 10

An ERP system is a good tool for developing and executing production plans because it integrates the functions of production planning,purchasing,materials management/warehousing,quality management,sales,and accounting.

Question 11

The percentage of the order that the supplier provided in the first shipment is known as the initial order lead time.

Question 12

The percentage of the order that the supplier provides in the first shipment is known as the first-rate.

Question 13

In a traditional supply chain,demand information is transmitted rapidly to all members of the supply chain.

Question 14

ERP systems are necessary to implement good supply chain management.

Question 15

The term supply chain describes all the activities required to move raw material from inventory to manufacturing for the purpose of producing a product.

Question 16

A make-to-stock production system is where:

A)items are made for inventory in anticipation of sales orders.
B)items are produced to fill specific customer orders.
C)items are assembled for a specific customer order from an inventory of components
D)both a and c

Question 17

The production plan for all finished goods is known as the MPS,or the master production schedule.

Question 18

The Sales and Operations Planning process is used to combine the sales forecast with capacity information to determine a production plan for finished goods.

Question 19

Because Fitter Snacker uses large quantities of oats,the most cost-effective way to purchase oats is to buy a farm and grown them.

Question 20

Lead times and lot sizing help a company determine the transfer of goods to the customer.

Question 21

Immediately after MRP is run in SAP ERP:

A)the stock/requirements list and MRP list are both updated and show the same information.
B)the MRP list is updated but the stock/requirements list is unaffected.
C)the stock/requirements list is updated but the MRP list is unaffected.
D)none of the above.

Question 22

What will the On Hand inventory be in week 5 after the system calculated planned orders?

A)0
B)440
C)8,038
D)14,038

Question 23

What metric tracks the number of times a supplier meets the agreed upon delivery date?

A)initial fill rate
B)initial order lead time
C)on-time performance
D)cash-to-cash cycle time

Question 24

The production plan for Fitter Snacker calls for 7000 cases of the snack bar product group in June.If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars,how many NRG-A bars should be produced in June?

A)500
B)2100
C)4900
D)7000

Question 25

An unexpected increase in product demand can lead to:

A)a depletion of finished goods inventories
B)a depletion of raw materials inventories
C)increased overtime and transportation expenses
D)all of the above
E)both a and b

Question 26

____ are disaggregated to generate detailed production schedules.

A)Bills of materials
B)Production runs
C)Internet sales orders
D)Rough-cut plans

Question 27

The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January.If there are 22 days in the month,how many cases of snack bars should be produced in a 4-day week?

A)188
B)752
C)940
D)1034

Question 28

Figure 4-2 The SAP ERP production planning process

In the accompanying figure,which shows the SAP ERP production planning process,what is C?

A)Starting Inventory
B)Sales Forecasting
C)MRP
D)Detailed Scheduling

Question 29

Fitter Snacker orders oats in 44,000 lb.batches.Given the following (incomplete)MRP record:

What Planned Orders will the MRP logic create?

A)An order for 44,000 units in week 2
B)An order for 44,000 units in week 3
C)An order for 44,000 units for weeks 2 and 3
D)An order for 88,000 units for week 3

Question 30

The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year.They are expecting sales to increase by 3% this year.In addition,they are launching a promotional campaign in May,which they expect will increase sales in June by an additional 500 cases.
What is the sales forecast for June of this year that Fitter Snacker should use?
a.6,628
b.7,128
c.6,935
d.7,143

Question 31

Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work week.They can work 2 hours of overtime per weekday,plus 4 hours on Saturday.They are developing an SOP for a month with 23 weekdays and 4 Saturdays.
What is the maximum number of cases that Fitter Snacker can produce in the month if they schedule workers for overtime on weekdays only?

A)7,666
B)9,199
C)9,582
D)10,249

Question 32

Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work week.They can work 2 hours of overtime per weekday,plus 4 hours on Saturday.They are developing an SOP for a month with 23 weekdays and 4 Saturdays.
What is the maximum number of cases they can product in the month if they schedule workers for overtime on weekdays and Saturdays?

A)7,666
B)9,199
C)9,582
D)10,249

Question 33

Figure 4-2 The SAP ERP production planning process

In the accompanying figure,which shows the SAP ERP production planning process,what is B?

A)Starting Inventory
B)Detailed Scheduling
C)Sales Forecasting
D)MRP

Question 34

In detailed scheduling,longer production runs of a particular product:

A)increases the available capacity by reducing the frequency of setups.
B)increases finished goods inventory levels.
C)reduces finished goods inventory levels.
D)both a and b
E)both a and c

Question 35

The costs normally required to manufacture a product,which are calculated from historical costs and any changes from that,are known as ____.

A)standard costs
B)abbreviated costs
C)known costs
D)estimated costs

Question 36

What process answers the question "What do we need to order to produce the product,and when do we need to order these raw materials?"

A)SF - sales forecasting
B)SOP - sales and operations planning
C)MRP - materials requirements planning
D)DS - detailed scheduling

Question 37

Figure 4-2 The SAP ERP production planning process

In the accompanying figure,which shows the SAP ERP production planning process,what is A?

A)MRP
B)Sales Forecasting
C)Starting Inventory
D)Detailed Scheduling

Question 38

Figure 4-2 The SAP ERP production planning process

In the accompanying figure,which shows the SAP ERP production planning process,what is D?

A)Starting Inventory
B)Detailed Scheduling
C)Sales Forecasting
D)MRP

Question 39

What is the production plan for all finished goods?

A)MPS - master production schedule
B)QQR - quality query run
C)PPR - production planning run
D)RUN - run

Question 40

The order of the steps in the SAP R/3 production planning process are:

A)Sales Forecasting,Demand Management,Purchasing,Sales and Operations Planning,MRP,Detailed scheduling,Production
B)Sales Forecasting,Demand Planning,Detailed scheduling,Purchasing,Demand Management,MRP,Production
C)Sales and Operations Planning,Sales Forecasting,MRP,Purchasing,Demand Management,Detailed scheduling,Production
D)Sales Forecasting,Sales and Operations Planning,Demand Management,MRP,Purchasing,Detailed scheduling,Production

Question 41

Explain Fitter Snacker's manufacturing process as shown in the accompanying figure:
Figure 4-1 Fitter Snacker's manufacturing process

Question 42

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is G?

Question 43

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is F?

Question 44

What are the three general approaches to production?

Question 45

Describe the measurements of success with Supply Chain Management.

Question 46

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is H?

Question 47

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is A?

Question 48

____________________ refers to the process of determining production quantities (for raw materials produced in-house)and order quantities (for purchased items).

Question 49

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is E?

Question 50

What is repetitive manufacturing?

Question 51

What are the three principles that production planners follow?

Question 52

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is B?

Question 53

What stage of the production planning process splits Fitter Snacker's monthly production planning values into finer time periods?

A)Sales Forecasting
B)BOM
C)MRP
D)Demand Management

Question 54

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is D?

Question 55

MATCHING
Match the letters in the accompanying figure with a statement below.
Figure 4-2 The SAP ERP production planning process
a.MRP
e.Detailed Scheduling
b.Demand Management
f.Starting Inventory
c.Purchasing
g.Production
d.Sales Forecasting
h.Sales and Operations Planning
What is C?

Question 56

COMPLETION

The ____________________,shown in the accompanying figure for Fitter Snacker,is a list of the materials needed to make NRG-A and NRG-B bars.

Question 57

How can data be entered into the SAP ERP system on the shop floor?

Question 58

When might the SAP ERP system block the entry of the receipt of goods in the receiving department?

Question 59

List and explain each step of the production planning process.

Question 60

SAP can provide sophisticated tools to support sales and operations planning.Is that all that is necessary for a company to be successful? Support your answer by discussing the departments of marketing and manufacturing.

Question 61

Describe Fitter Snacker's accounting and purchasing problems with regard to its production process.

Question 62

Describe Fitter Snacker's communication problems with regard to the production process.

Question 63

Describe Fitter Snacker's inventory problems with regard to their production process.