1) One of the differences between Enterprise Resource Planning

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311 Review 3 (Chapters 11,12,14)
1. The MRP input stating which end items
are to be produced, when they are needed,
and what quantities are needed, is the:
a. master schedule
b. bill-of-materials file
c. inventory record file
d. assembly-time chart
e. net-requirement chart
5. A basic requirement for operating with low
inventories in JIT systems is
2. The MRP input storing information on
the status of each item by time period
(e.g., scheduled receipts, lead time, lot
size) is the:
6. Which of the following statements about ERP
is true?
a.
b.
c.
d.
e.
master production schedule
bill-of-materials file
inventory record file
assembly-time chart
net-requirement chart
3. Which one of the following most closely
describes net requirements?
a. Gross requirements – amount onhand – scheduled receipts
b. Gross requirements – planned
receipts
c. Gross requirements - order
releases + amount on-hand
d. Gross requirements – planned
order release
e. Gross requirements – amount onhand + planned order releases
a.
b.
c.
d.
e.
inventory space must be saved
inventory investment must be saved
major problems must be uncovered
major problems must have been solved
inventory must be reduced rapidly
a). ERP is limited to operations internal to the
enterprise
b). ERP is similar to MRPII, except that t
extends to service operations.
c). ERP allows customers and suppliers to
access the system
d). Both ERP and MRPII are linked to the
external supply chains.
7. Which of the following statements about lotsizing rules for MRP is true?
a). The L4L rule generates a high level of
average inventory
b). Fixed order quantity (FOQ) reduces the
amount of inventory on hand
c). the L-4-L rules minimize inventory
investment, but increases the number of
orders
d). all lot-sizing rules seek to minimize
inventory levels.
4. 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. none of the above
8. Which one of the following is an advantage of
JIT?
a). JIT systems reduce equipment needs by
using larger lot sizes
b). JIT systems result in an increase in
manufacturing lead time
c). JIT systems result in a decrease in safety
stock and WIP inventory
d). JIT systems reduce WIP inventory by
adopting a push system
1. Use the following MPS, BOM, and inventory data, fill out the MRP tables provided in the next
page to answer questions 1 to 3.
311 Review 3 (Chapters 11,12,14)
a) Master Production Schedule: The following table shows the MPS release dates already offset for
item A's lead time.
Week
Week
1
MPS
2
3
60
4
5
70
6
40
b) Bill of Material
-End item A uses 1 each of component D and 2 each of subassembly C.
-Subassembly C uses 2 each of component E and 1 each of component F.
c) Selected Inventory Data
Item
Data Category
C
D
E
Lot-sizing rule
FOQ=50
L4L
FOQ=70
Lead time (weeks)
1
1
1
Beginning (on-hand) inventory
30
0
30
Safety stock
0
0
20
50 (wk 1)
30 (wk 1)
90 (wk 1)
Scheduled receipts
1. What is the largest quantity of projected on-hand inventory for any of the weeks for item D?
a. 0 units
b. greater than 0, but less than or equal to 25 units
c. greater than 25, but less than or equal to 50 units.
d. Greater than 50
2. How many planned order releases are there for item C?
a. none
b. one
c. two
d. more than two
3. Which of the following statements concerning item E is true?
a. The projected on-hand inventory quantity in week 4 is 0 units
b. The planned order receipt in week 3 is 280 units
c. There are three planned order releases.
d. There are planned order receipts needed in weeks 3 and 5.
Item:
Lead time:
Lot size:
311 Review 3 (Chapters 11,12,14)
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2
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4
5
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2
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Gross requirements
Scheduled receipts
On-hand Inv.
Net Requirements
Planned receipts
Planned releases
Item:
Lead time:
Lot size:
Gross requirements
Scheduled receipts
On-hand Inv.
Net Requirements
Planned receipts
Planned releases
Item:
Lead time:
Lot size:
Gross requirements
Scheduled receipts
On-hand Inv.
Net Requirements
Planned receipts
Planned releases
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