Description of this paper

True false -MRP and ERP




Question;True false -MRP and ERP1. MRP;works best if the inventory items have dependent demand.;True False;2. Low;level coding represents items less than $18 per unit.;True False;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;4. Lumpy;demand for components results primarily from the periodic scheduling of batch;production.;True False;5. MRP;is used within most MRP II and ERP systems.;True False;6. The;master production schedule states which end items are to be produced, in;addition to when and how many.;True False;7. Net;requirements equal gross requirements minus safety stock.;True False;8. The;master schedule needs to be for a period long enough to cover the stacked or;cumulative lead time necessary to produce the end items.;True False;9. Initially;a master production schedule - the output from MRP - may not represent a;feasible schedule.;True False;10. MRP;considering inventory position, bills of material, open purchase orders and;lead times guarantees a feasible production plan if the inputs to MRP are;accurate.;True False;11. The;bill of materials indicates how much material will be needed to produce the;quantities on a given master production schedule.;True False;12. A;bill of materials contains a listing of all the assemblies, parts, and;materials needed to produce one unit of an end item.;True False;13. The;bill of materials contains information on lead times and current inventory;position on every component required to produce the end item.;True False;14. The;inventory records contain information on the status of each item by time;period.;True False;15. An;assembly-time chart indicates gross and net requirements taking into account;the current available inventory.;True False;16. MRP;II did not replace or improve the basic MRP.;True False;17. The;gross requirements at one level of an MRP plan determine the gross requirements;at the next lower level continuing on down to the lowest levels shown on the;bill of material.;True False;18. The;gross requirements value for any given component is equal to the net;requirements of that component's immediate parent multiplied by the quantity;per parent.;True False;19. The;term pegging refers to identifying the parent items that have generated a given;set of material requirements for a part or subassembly.;True False;20. A;net-change MRP system is one that is updated periodically but not less;frequently than once a week.;True False;21. One;reason that accurate bills of material are important is that errors at one;level become magnified at lower levels because of the multiplication process;used by MRP.;True False;22. A;regenerative MRP system is one that is updated continuously - every time there;is a schedule change.;True False;23. One;of the primary output reports of MRP concerns changes to planned orders.;True False;24. Safety;time is sometimes used in MRP rather than safety stock quantities.;True False;25. Lot-for-lot;ordering in MRP provides coverage for some predetermined number of periods;using forecasted demand to extend beyond the orders already received for those;periods.;True False;26. MRP;output reports are divided into two main groups - daily and weekly.;True False;27. In;MRP, EOQ models tend to be less useful for materials at the lowest levels than;for upper level assemblies of the bill of materials since higher-level;assemblies have larger dollar investments.;True False;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;29. ERP;began in manufacturing organizations but has spread into service;organizations.;True False;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;31. Lot-for-lot;ordering in MRP eliminates the holding costs for parts that are carried over to;other periods.;True False;32. Capacity;requirements planning (CRP) is an important feature in MRP+.;True False;33. Project;Management approaches can help in a conversion to an ERP system.;True False;34. As;long as a forecast is plus or minus 10%, MRP works well.;True False;35. ERP;represents an expanded effort to integrate standardized record-keeping that;shares information among different areas of an organization.;True False;36. Back;flushing takes place after the production has been completed.;True False;37. Before;a schedule receipt can take place, and order must be placed with a;vendor.;True False;38. MRP;really doesn't apply to services since raw material isn't required.;True False;39. ERP;implementation requires support and a direct mandate from the CEO because it;impacts so many different functional areas.;True False;40. ERP;automates the tasks involved in performing a business process, such as order;fulfillment and financial reporting.;True False


Paper#46914 | Written in 18-Jul-2015

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