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SCO 3001 Chapter 16

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Supply Chain Operations Chapter 16
Elizabeth McGathey
Quiz by Elizabeth McGathey, updated more than 1 year ago
Elizabeth McGathey
Created by Elizabeth McGathey over 9 years ago
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Resource summary

Question 1

Question
Demand derived from higher level assemblies and subassemblies is called:
Answer
  • Just-in-time demand.
  • Forecasted demand.
  • Dependent demand.
  • Independent demand.

Question 2

Question
Planned orders are created to meet the following condition:
Answer
  • Meet the gross requirements.
  • Meet the shop orders.
  • Meet the purchase orders.
  • Meet the net requirements.

Question 3

Question
The main difference push and pull systems is that:
Answer
  • Pull systems call for production based on a forecast.
  • Pull systems call for production when a customer removes a unit.
  • Push systems call for production based on an actual customer demand.
  • Push systems call for production when a customer removes a unit.

Question 4

Question
Select ALL of the following statements that are true about MRP (Materials Requirements Planning) systems:
Answer
  • The demand for an item is derived from the planned orders for higher levels items.
  • MRP systems use fixed planned leadtimes that are set independently of the amount of work currently in the factory
  • The key idea is that we are planning both shop and purchase orders so that we know when to expedite and de-expedite an order.
  • MRP systems consider thousands of alternatives to come up with the mathematically optimal schedule

Question 5

Question
A listing of the components, parts, and other items needed to manufacture a product, showing the quantity of each required for each intermediate item is called the:
Answer
  • Bill of Materials
  • Design for manufacturing.
  • Work breakdown structure.
  • Routing.

Question 6

Question
Which ONE of the following best describes top management's handle on the business?
Answer
  • Planned Orders
  • Inventory Master.
  • Master Production Schedule (MPS)
  • Bill of Material (BOM)

Question 7

Question
Which ONE of the following statements best describes the main outputs of an MRP system?
Answer
  • Purchase and shop orders.
  • Purchase orders.
  • Shop orders and a detailed shop schedule.
  • Purchased orders and a detailed shop schedule.

Question 8

Question
Which ONE of the following statements best describes the explosion process used in an MRP system?
Answer
  • Translates the Bill of Materials into a detailed schedule for each machine.
  • Translates the Bill of Materials into a materials plan for each component part or raw material.
  • Translates the Master Production Schedule into a materials plan for each component part or raw material.
  • Translates the Master Production Schedule into a detailed schedule for each machine.

Question 9

Question
A manufacturing planning and scheduling system that is sometimes used to supplement an "infinite planning" MRP system to create detailed schedules is called:
Answer
  • Reorder point system.
  • Flexible Manufacturing Systems (FMS).
  • Advanced Planning and Scheduling (APS)
  • Manufacturing Execution Systems (MES).

Question 10

Question
Select ALL of the following statements that are true about Enterprise Resource Planning (ERP) systems in manufacturing firms.
Answer
  • Create detailed schedules for manufacturing orders.
  • Used by nearly all manufacturers in North America and Western Europe.
  • Provide the databases needed to run the business.
  • Expensive and time-consuming to implement.

Question 11

Question
Which ONE of the following statements is true about the planned leadtimes in a Materials Requirements Planning (MRP) system?
Answer
  • Determined based on the other orders currently in the factory.
  • Determined based on the maximum time to replenish inventory.
  • Determined based on the average time to replenish inventory.
  • Determined based on the available capacity.

Question 12

Question
Select ALL of the following approaches that can be used in an MRP system to mitigate risk of a stockout:
Answer
  • Safety forecast.
  • Safety stock.
  • Safety leadtime.
  • Safety capacity.

Question 13

Question
A manufacturing planning and scheduling system that is sometimes used to supplement an "infinite planning" MRP system to create detailed schedules is called:
Answer
  • Manufacturing Execution Systems (MES)
  • Reorder point system.
  • Flexible Manufacturing Systems (FMS).
  • Advanced Planning and Scheduling (APS).

Question 14

Question
Which ONE of the following statements most accurately describes inventory master?
Answer
  • A database includes all of the information about how each item relates to others in the Bill of Material.
  • A database includes all of the information about how each item is to be built, including the sequence of steps required.
  • A database that includes the yield information for each item.
  • A database includes all of the information about each item such as the part number, unit of measure, etc.

Question 15

Question
Select ALL of the following statements that are true about a push system.
Answer
  • Orders are started in the factory without regard to signals from a customer.
  • Push and pull systems cannot be combined.
  • Forecast information is used to help create the master production schedule.
  • Production is blocked when the containers are full.

Question 16

Question
Which ONE of the following statements best describes the relationship between MRP and an ERP system?
Answer
  • An MRP system handling accounting in an ERP system.
  • An ERP system is just one of many modules in an MRP system.
  • MRP systems and ERP systems are completely different systems.
  • An MRP system is just one of many modules in an ERP system.

Question 17

Question
Why is cycle counting fundamentally better than a year-end physical inventory?
Answer
  • Cycle counting fixes the causes on the problems, not just the balances.
  • Counting all items every cycle satisfied the requirements for the auditors.
  • The year-end physical inventory only fixes the causes of the problems.
  • The year-end inventory only counts items when they have a negative balance.

Question 18

Question
Select ALL of the following tools and/or concepts that are essential to MRP systems:
Answer
  • ABC classification.
  • Planned orders.
  • Economic Order Quantity (EOQ).
  • Gross requirements

Question 19

Question
Which ONE of the following statements best describes the explosion process used in an MRP system?
Answer
  • Translates the Master Production Schedule into a materials plan for each component part or raw material.
  • Translates the Bill of Materials into a detailed schedule for each machine.
  • Translates the Master Production Schedule into a detailed schedule for each machine.
  • Translates the Bill of Materials into a materials plan for each component part or raw material.

Question 20

Question
Which ONE of the following best describes top management's handle on the business?
Answer
  • Planned Orders.
  • Master Production Schedule (MPS)
  • Inventory Master.
  • Bill of Material (BOM)
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