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Multiple choice questions MRP and ERP 1. 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 2. . 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 3. . 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) 4. 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 E. the internet 5. . 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 6. . 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. 7. 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 C. inventory-records D. assembly-time chart E. net-requirements chart 8. . 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 9. . 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 B. bill-of-materials C. inventory-records D. assembly-time chart E. net-requirements chart 10. 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 C. MRP II D. pegging E. Gantt chart 11. 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 B. bill-of-materials C. inventory-records D. assembly-time chart E. net-requirements chart 12. 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 13. . 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 14. 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 15. . Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? A. gross requirements B. net requirements C. economic order quantity D. gross requirements – net requirements E. net requirements – amount on-hand 16. . 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. 17. The identification of parent items is called: A. Paternity B. Pegging C. Requirement I.D. D. Relationship tracking E. Master Scheduling 18. Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called: A. pegging B. planned order release C. net change D. regenerative E. exception report 19. An MRP system whose records are updated continuously is referred to as a(n): A. regenerative system B. batch-type system C. Plossl-Wright system D. net-change system E. gross-change system 20. 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. 21. . Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time? A. pegging B. safety stock C. increased order sizes D. safety time E. low-level coding 22. Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs? A. economic order quantity B. economic run size C. lot-for-lot D. part-period E. all of the above 23. When MRP II systems include feedback, they are known as: A. MRPIII B. Enterprise resource planning C. Circular MRP D. Feasible MRP E. Closed Loop MRP 24. The multiplication process used by MRP to determine lower level requirements is called: A. time-phasing B. pegging C. netting D. projecting E. exploding 25. _______ is choosing how many to order or make. A. Quantity determination B. Package sizing C. Lot sizing D. Grouping E. Aggregation 26. 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 27. The _________ of ERP makes it valuable as a strategic planning tool. A. Internet base B. Rapid Batch capability C. Employee focus D. Real-time aspect E. Database structure 28. 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 29. 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. 30. Which of these items would be most likely to have dependent demand? A. Xbox batteries B. toy trains C. flowers D. chocolate chip cookies E. wrist watches 31. Which of these products would be most likely to have dependent demand? A. refrigerators B. automobile engines C. televisions D. brownies E. automobiles

Multiple choice questions MRP and ERP

1. 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

2. . 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

3. . 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)

4. 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

E. the internet

5. . 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

6. . 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.

7. 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

C. inventory-records

D. assembly-time chart

E. net-requirements chart

8. . 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

9. . 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

B. bill-of-materials

C. inventory-records

D. assembly-time chart

E. net-requirements chart

10. 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

C. MRP II

D. pegging

E. Gantt chart

11. 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

B. bill-of-materials

C. inventory-records

D. assembly-time chart

E. net-requirements chart

12. 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

13. . 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

14. 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

15. . Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

A. gross requirements

B. net requirements

C. economic order quantity

D. gross requirements – net requirements

E. net requirements – amount on-hand

16. . 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.

17. The identification of parent items is called:

A. Paternity

B. Pegging

C. Requirement I.D.

D. Relationship tracking

E. Master Scheduling

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

A. pegging

B. planned order release

C. net change

D. regenerative

E. exception report

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

A. regenerative system

B. batch-type system

C. Plossl-Wright system

D. net-change system

E. gross-change system

20. 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.

21. . Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

A. pegging

B. safety stock

C. increased order sizes

D. safety time

E. low-level coding

22. Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

A. economic order quantity

B. economic run size

C. lot-for-lot

D. part-period

E. all of the above

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

A. MRPIII

B. Enterprise resource planning

C. Circular MRP

D. Feasible MRP

E. Closed Loop MRP

24. The multiplication process used by MRP to determine lower level requirements is called:

A. time-phasing

B. pegging

C. netting

D. projecting

E. exploding

25. _______ is choosing how many to order or make.

A. Quantity determination

B. Package sizing

C. Lot sizing

D. Grouping

E. Aggregation

26. 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

27. The _________ of ERP makes it valuable as a strategic planning tool.

A. Internet base

B. Rapid Batch capability

C. Employee focus

D. Real-time aspect

E. Database structure

28. 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

29. 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.

30. Which of these items would be most likely to have dependent demand?

A. Xbox batteries

B. toy trains

C. flowers

D. chocolate chip cookies

E. wrist watches

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

A. refrigerators

B. automobile engines

C. televisions

D. brownies

E. automobiles

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