Essay about Operations Management - Chapter 12 Exam

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Pages: 17

Operations Management - Chapter 12 - Help Test Questions
1. 1. MRP works best if the inventory items have dependent demand.
True False
TRUE
MRP is best for dependent demand scenarios.
2. 2. Low level coding represents items less than $18 per unit.
True False
FALSE
Low-level coding codes items at their lowest BOM levels.
3. 3. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.
True False
FALSE
Dependent demand is more lumpy.
4. 4. Lumpy demand for components results primarily from the periodic scheduling of batch production.
True False
TRUE
Batch production leads to lumpy demand for components.
5. 5. MRP is used within most MRP II

28. 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.
True False
TRUE
Load reports facilitate the formulation of feasible production schedules.
29. 29. ERP began in manufacturing organizations but has spread into service organizations.
True False
TRUE
Over time ERP has spread into a wide variety of organizations.
30. 30. MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items.
True False
FALSE
MRP II takes into account capacity requirements.
31. 31. Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods.
True False
TRUE
Lot-for-lot ordering minimizes holding costs.
32. 32. Capacity requirements planning (CRP) is an important feature in MRP+.
True False
FALSE
CRP is a feature of MRP II.
33. 33. Project Management approaches can help in a conversion to an ERP system.
True False
TRUE
ERP conversions can be complex projects.
34. 34. As long as a forecast is plus or minus 10%, MRP works well.
True False
FALSE
MRP needs accurate forecasts.
35. 35. ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization.
True False
TRUE
ERP is intended to facilitate consistent decision-making across the organization.
36. 36. Back