Deck 6: Resource Planning Systems

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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 10

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

Question 11

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 12

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

Question 13

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

Question 14

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 15

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 16

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 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

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

Question 19

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 20

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

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 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 23

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 24

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 25

Which number should be placed in the spot presently filled with the X? Item ABC-Level
1
2
3
4
Gross Requirements
20
20
10
15
Schedule Receipts
20
Projected on Hand Inventory
50
30
30
20
X
Net Requirements
Planned Order Releases
40
Q = 20; LT = 3; SS = 20

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

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

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 28

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

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

Question 29

Which number should be placed in the spot presently filled with the X? Item ABC-Level
1
2
3
4
Gross Requirements
40
65
35
10
Schedule Receipts
60
Projected on Hand Inventory
70
30
25
20
10
Net Requirements
Planned Order Releases
X
Q = 30; LT = 2; SS = 10

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

Question 30

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 31

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 32

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 33

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 34

Which number should be placed in the spot presently filled with the X? Item ABC-Level 1
1
2
3
4
Gross Requirements
20
20
50
30
Schedule Receipts
25
Projected on Hand Inventory
30
10
15
40
10
Net Requirements
Planned Order Releases
X
Q = 25; LT = 2; SS = 10

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

Question 35

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 36

Which number should be placed in the spot presently filled with the X? Item ABC-Level
1
2
3
4
Gross Requirements
20
10
40
X
Schedule Receipts
25
Projected on Hand Inventory
25
30
20
30
25
Net Requirements
Planned Order Releases
50
Q = 25; LT = 2; SS = 20

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

Question 37

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 38

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 39

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 40

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 41

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

Question 42

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 43

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 44

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 45

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 46

What is ERP? Why was it developed?

Question 47

Complete the Projected on hand inventory Row
Item ABC-Level
1
2
3
4
Gross Requirements
15
40
40
10
Schedule Receipts
50
Projected on Hand Inventory
40
Net Requirements
Planned Order Releases
25
Q = 25; LT = 3; SS = 10

Question 48

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