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Exam 12: MRP and ERP

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Question 1

True/False

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The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.

A) True
B) False

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Question 2

Multiple Choice

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Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records (II) accurate demand forecasts (III) accurate holding and backordering costs (IV) accurate bills of materials

A) I, II, and IV only
B) I, III, and IV only
C) I, II, and III only
D) I and II only
E) I, II, III, and IV

F) A) and B)
G) A) and C)

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Question 3

Multiple Choice

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In many organizations, information flows much more freely within functions than it does across functions. __________ represents an expanded effort to overcome this tendency.

Which of these products would be most likely to have dependent demand?

ERP began in manufacturing organizations but has spread into service organizations.

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot) , and quantities on hand: $\begin{array} { c l l } \text { Deluxe Easter Basket BOM } & \text { Lead Time } & \text { On-Hand } \\\hline \text { Deluxe Easter Basket } & 1 \text { week } & 10 \\\text { Dark Chocolate Truffles (2 per) } & 2 \text { weeks } & 30 \\\text { Carved Chocolate Eggs (4 per) } & 1 \text { week } & 50\end{array}$ Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge. How many dark chocolate eggs should be ordered?

ERP's primary value comes from applications:

Given the following information, develop a material requirements plan that will lead to 400 units of product P being available at the beginning of week 7.

The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material.

Which statement concerning MRP II is false?

MRP II did not replace or improve the basic MRP.

An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

An assembly-time chart indicates gross and net requirements taking into account the current available inventory.

One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.

Safety time is sometimes used in MRP rather than safety stock quantities.

Project management approaches can help in a conversion to an ERP system.

Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases

An MRP system whose records are updated continuously is referred to as a(n) :

Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods (such as two or three) that extend beyond the orders already received for those periods.

An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been: