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Operations management stevenson 11th edition test bank ch12

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The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.. Given the following dat

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9 Initially, a master production schedule - the output from MRP - may not represent a feasible schedule True False

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18 The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent

True False

19 The term pegging refers to identifying the parent items that have generated a given set of material

requirements for a part or subassembly

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27 In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies

of the bill of materials since higher-level assemblies have larger dollar investments

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36 Back flushing takes place after the production has been completed

41 Which of the following most closely describes dependent demand?

A demand generated by suppliers

B estimates of demand using regression analysis of independent variables

C derived demand

D demands placed on suppliers by their customers

E net material requirements

42 ERP implementation probably won't require:

A cross functional teams

B just a few weeks to install

C intensive training

D high funding for both initial cost and maintenance

E frequent upgrades after installation

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43 A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is:

A computer aided manufacturing (CAM)

B computer integrated manufacturing (CIM)

C economic order quantity (EOQ)

D material requirements planning (MRP)

E economic run size (ERS)

44 The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

A computers

B development of the EOQ model

C inventory control systems

D blanket purchase orders

C a schedule of requirements for all parts and end items

D inventory reorder points

E economic order quantities and reorder points

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48 In an MRP master schedule, the planning horizon is often separated into a series of times periods called:

A assembly time chart

B product structure tree

52 Which one of the following most closely describes net material requirements?

A gross requirements - amount on-hand - scheduled receipts

B gross requirements - planned receipts

C gross requirements - order releases + amount on-hand

D gross requirements - planned order releases

E gross requirements - amount on-hand + planned order releases

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53 In MRP, "scheduled receipts" are:

A identical to "planned-order receipts"

B identical to "planned-order releases"

C open orders (that is, ordered before the first time bucket, but not delivered yet)

D "net requirements"

E available to promise inventory

54 In MRP, under lot-for-lot ordering, "planned-order receipts" are:

A identical to "scheduled receipts"

B identical to "planned-order releases"

C open orders (that is, ordered before the first time bucket, but not delivered yet)

C economic order quantity

D gross requirements - net requirements

E net requirements - amount on-hand

56 In MRP, the gross requirements of a given component part are calculated from:

A net requirements + amount on-hand

B gross requirements of the immediate parent

C planned orders of the end item

D net requirements of end item

E planned orders of the immediate parent

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58 Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

60 Which is true of a net-change system?

A It is a batch-type system which is updated periodically

B It is usually run at the beginning of each month

C The basic production plan is modified to reflect changes as they occur

D It is used to authorize the execution of planned orders

E It indicates the amount and timing of future changes

A economic order quantity

B economic run size

C lot-for-lot

D part-period

E all of the above

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63 When MRP II systems include feedback, they are known as:

66 Which of the following is not usually necessary in order to have an effective MRP system?

A a computer and software

B an accurate bill of materials

C lot-for-lot ordering

D an up-to-date master schedule

E integrity of file data

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

A material requirements planning

B capacity requirements planning

C manufacturing resources planning

D Just-In-Time planning

E multifunctional relationships planning

69 Which statement concerning MRP II is false?

A It is basically a computerized system

B It can handle complex planning and scheduling quickly

C It involves other functional areas in the production planning process

D It involves capacity planning

E It produces a production plan which includes all resources required

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72 Using the product tree shown, determine the following:

(A) the quantity of component K that will be needed to assemble 80 units of P, assuming no on-hand inventory

of any components exists

(B) the quantity of component K needed to assemble 80 units of P, given on-hand inventory of 30 A's, 50 B's and 20 C's

Determine the number of N's that will be needed to make 60 P's in each of these cases:

(A) There are currently 10 P's on hand

(B) On-hand inventory consists of 15 P's, 10A's, 20 B's, 10 C's, 100 N's, 300 T's, and 200 M's

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74 Given the following information, construct a product tree diagram and develop a material requirements plan that will lead to 400 units of product P being available at the start of week 7

One hundred units of P should be available at the start of week 4 and at the start of week 8 Beginning

inventories are: 20 P, 100 A, and 200 F

Scheduled receipts are: 800 F at the start of week 1

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76 Given the following data, construct a material requirements plan which will result in 100 units of Parent #1 (P1) at the beginning of week 6, and 200 units of Parent #2 (P2) at the beginning of week 8:

(B) An order for 100 units of Alpha is scheduled to be shipped at the start of week 9 When is the earliest that any particular component must be started so that the order for Alpha will be ready to ship? [Hint: You don't need to do an MRP plan.]

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Refer to this product-tree:

80 If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and

subassemblies, how many Cs are needed?

Bunny Helpers, Inc has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery

at the start of week six An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:

Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle

of Alka-Selzer is included for those who overindulge

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81 What is the net requirement for Dark Chocolate Truffles to fill this order?

82 When should an order for Carved Chocolate Eggs be released?

A at the start of week 2

B at the start of week 3

C at the start of week 4

D at the start of week 5

E at the start of week 6

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86 Comparing known and expected capacity requirements with projected capacity availability is the job of _

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Topic Area: An Overview of MRP

2 Low level coding represents items less than $18 per unit

Topic Area: MRP Inputs

3 Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand

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4 Lumpy demand for components results primarily from the periodic scheduling of batch production

Topic Area: Introduction

5 MRP is used within most MRP II and ERP systems

Topic Area: MRP Inputs

7 Net requirements equal gross requirements minus safety stock

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8 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

Topic Area: MRP Inputs

9 Initially, a master production schedule - the output from MRP - may not represent a feasible schedule

TRUE

Management must make more detailed capacity requirements planning to determine whether these more specific capacity requirements can be met and some adjustments in the master production schedule may be required

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11 The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule

Topic Area: MRP Inputs

12 A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of

Topic Area: MRP Inputs

13 The bill of materials contains information on lead times and current inventory position on every component required to produce the end item

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14 The inventory records contain information on the status of each item by time period

Topic Area: MRP Inputs

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

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18 The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent

Topic Area: MRP Processing

19 The term pegging refers to identifying the parent items that have generated a given set of material

requirements for a part or subassembly

Topic Area: MRP Processing

20 A net-change MRP system is one that is updated periodically but not less frequently than once a week

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21 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

Topic Area: Benefits and Requirements of MRP

22 A regenerative MRP system is one that is updated continuously - every time there is a schedule change

Topic Area: MRP Processing

23 One of the primary output reports of MRP concerns changes to planned orders

Topic Area: MRP Outputs

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

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25 Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods using forecasted demand to extend beyond the orders already received for those periods

Topic Area: Other Considerations

26 MRP output reports are divided into two main groups - daily and weekly

Topic Area: MRP Outputs

27 In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies

of the bill of materials since higher-level assemblies have larger dollar investments

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28 Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center

Topic Area: ERP

30 MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items

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32 Capacity requirements planning (CRP) is an important feature in MRP+

Topic Area: MRP Processing

33 Project Management approaches can help in a conversion to an ERP system

Topic Area: Capacity Requirements Planning

34 As long as a forecast is plus or minus 10%, MRP works well

Topic Area: Benefits and Requirements of MRP

35 ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization

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36 Back flushing takes place after the production has been completed

Topic Area: MRP Outputs

37 Before a schedule receipt can take place, and order must be placed with a vendor

Topic Area: MRP Outputs

38 MRP really doesn't apply to services since raw material isn't required

Topic Area: MRP in Services

39 ERP implementation requires support and a direct mandate from the CEO because it impacts so many different functional areas

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40 ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting

Topic Area: ERP

41 Which of the following most closely describes dependent demand?

A demand generated by suppliers

B estimates of demand using regression analysis of independent variables

C derived demand

D demands placed on suppliers by their customers

E net material requirements

Dependent demand results from decisions to produce parent items

Topic Area: An Overview of MRP

42 ERP implementation probably won't require:

A cross functional teams

B just a few weeks to install

C intensive training

D high funding for both initial cost and maintenance

E frequent upgrades after installation

ERP implementation can take years

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43 A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is:

A computer aided manufacturing (CAM)

B computer integrated manufacturing (CIM)

C economic order quantity (EOQ)

D material requirements planning (MRP)

E economic run size (ERS)

MRP is targeted toward dependent-demand inventories

Topic Area: Introduction

44 The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

A computers

B development of the EOQ model

C inventory control systems

D blanket purchase orders

Topic Area: Introduction

45 The output of MRP is:

A gross requirements

B net requirements

C a schedule of requirements for all parts and end items

D inventory reorder points

E economic order quantities and reorder points

MRP schedules part and end item requirements

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46 Which one of the following is not an input in an MRP system?

A planned-order schedules

B bill of materials

C master production schedule

D inventory records

E All are inputs

Planned-order schedules are outputs from MRP

Topic Area: MRP Inputs

47 The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:

Topic Area: MRP Inputs

48 In an MRP master schedule, the planning horizon is often separated into a series of times periods called:

A pegging

B lead times

C stacked lead times

D time buckets

E firm, fixed and frozen

Time buckets are discrete time periods

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49 The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

A master production schedule

Topic Area: MRP Inputs

50 A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

A assembly time chart

B product structure tree

Topic Area: MRP Inputs

51 The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

A master production schedule

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52 Which one of the following most closely describes net material requirements?

A gross requirements - amount on-hand - scheduled receipts

B gross requirements - planned receipts

C gross requirements - order releases + amount on-hand

D gross requirements - planned order releases

E gross requirements - amount on-hand + planned order releases

On-hand and scheduled receipts must be subtracted from gross requirements

Topic Area: MRP Processing

53 In MRP, "scheduled receipts" are:

A identical to "planned-order receipts"

B identical to "planned-order releases"

C open orders (that is, ordered before the first time bucket, but not delivered yet)

D "net requirements"

E available to promise inventory

Scheduled receipts are orders that have already been placed

Topic Area: MRP Inputs

54 In MRP, under lot-for-lot ordering, "planned-order receipts" are:

A identical to "scheduled receipts"

B identical to "planned-order releases"

C open orders (that is, ordered before the first time bucket, but not delivered yet)

D "gross requirements"

E available to promise inventory

Planned receipts would be equal to planned releases under any lot sizing rule

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