Chapter 14 Concepts – Flashcards

Which of the following is not one of the benefits in MRP? a) improved utilization of facilities and labor b) increased inventory levels c) better response to customer orders as the result of improved adherence to schedules d) faster response to market changes

Which of the following statements is not true about MRP? a) MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine materials requirements b) MRP has evolved as the basis for Enterprise Resource Planning c) MRP provides a clean structure for dependent demand d) MRP is an independent demand technique used in a production environment

Which of the following statements is not true? a) For any product, some components of that product are independent demand items b) Less inventory frees up capital and floor space for other uses c) Demand for items is dependent when the relationship between the items can be determined d) For any product for which a schedule can be established, dependent techniques should be used

What is a lost of quantities of components, ingredients, and materials required to make a product?

What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular date?

The difference between a gross materials requirements plan and a net requirements plan is that

What is the lot-sizing technique that generates exactly what was required to meet the plan?

Which of the following statements is not true the EOQ? a) The EOQ can be reasonable lot sizing technique when demand is relatively constant and independent b) The EOQ is preferable when dependent demand exists c) The EOQ can be used as a lot sizing technique for MRP systems d) The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production scehdule

What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders?

Which of the following statements is not true regarding ERP? a) The objective of an ERP system is to coordinate a firm's whole business b) ERP promises slow, but accurate, information c) ERP usually provides financial and human resource management information d) ERP allows companies share a common database and business practices throughout the enterprise