chap06.doc

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Department
Supply Chain Management
Course
33:799:301
Professor
spiegel
Semester
Fall

Description
Chapter 6—Resource Planning Systems TRUE/FALSE 1. The resource and operations planning done by operations managers is intended to balance capacity and output. ANS: T PTS: 1 2. MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization. ANS: F PTS: 1 3. The three basic production strategies for addressing the aggregate planning problem are the capacity production strategy, the level production strategy, and the chase production strategy. ANS: F PTS: 1 4. 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. ANS: T PTS: 1 5. System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans. ANS: T PTS: 1 6. System nervousness is a common business culture phenomenon where employees are unsure how to utilize a newly implemented ERP system. ANS: F PTS: 1 7. 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. ANS: F PTS: 1 8. The process of converting a parent item's planned order releases into component gross requirements is referred to as the MRP explosion. ANS: T PTS: 1 9. The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP implosion. ANS: F PTS: 1 10. ERP systems, more commonly known as enterprise relationship programming systems, are the tools organizations use in order to efficiently share information with their supply chain members in hopes that the organization's resources, as well as a the resources of their supply chain partners, are fully utilized to meet demand, while minimizing supply chain inventories. ANS: F PTS: 1 11. A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a single centralized database. ANS: T PTS: 1 12. A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a multiple databases that are decentralized for both competitive and security purposes. ANS: F PTS: 1 13. 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. ANS: T PTS: 1 14. Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation. ANS: T PTS: 1 15. 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. ANS: F PTS: 1 16. MRP systems are simply a more modern version of the ERP systems of the 1980's. ANS: F PTS: 1 MULTIPLE CHOICE 1. 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 ANS: D PTS: 1 2. 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 ANS: B PTS: 1 3. 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 ANS: C PTS: 1 4. 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 ANS: A PTS: 1 5. 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 ANS: B PTS: 1 6. 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 ANS: B PTS: 1 7. 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 ANS: A PTS: 1 8. 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 ANS: A PTS: 1 9. 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 ANS: C PTS: 1 10. 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 ANS: C PTS: 1 11. 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 ANS: B PTS: 1 12. 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 ANS: D PTS: 1 13. 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 ANS: A PTS: 1 14. Which number should be placed in the spot presently filled with the X? Item ABC-Level 1 1 2 3 4 Gross Requirements 40 65 35 10 Schedule Receipts 60 Projected on Hand Inventory 50 30 25 20 10 Net Requirements Planned Order Releases X Q = 30; LT = 2; SS = 10 a. 10 b. 15 c. 30 d. 60 ANS: C PTS: 1 SHORT ANSWER 1. Briefly define any FOUR of 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 ANS: 1. Pa
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