ERP Free Online exams test1

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1. Demand for a given item is said to be dependent if _____.
the item has several children	there is a deep bill of materials
the finished products are mostly services (rather than goods)	there is a clearly identifiable parent

2. Dependent demand and independent demand items differ in that ____ ?
for any product, all components are dependent-demand items	the need for independent-demand items is forecasted
the need for dependent-demand items is calculated	all of the above

3. A master production schedule specifies _____.
the financial resources required for production	what component is to be made, and when
what product is to be made, and when	the labor hours required for production

4. The ______ is(are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
master production schedule	gross requirements
inventory records	assembly time chart

5. A master production schedule contains information about ____ .
quantities and required delivery dates of all sub-assemblies	quantities and required delivery dates of final products
inventory on hand for each sub-assembly	inventory on hand for each final product

6. In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of _____.
end-items	modules
kits	customer orders

7. In job shop (make-to-order) operations, the master production schedule is usually expressed in terms of _____.
end-items	modules
kits	customer orders

8. All of the following are advantages of enterprise resource planning (ERP) except it _____.
creates commonality of databases	increases communications and collaboration worldwide
helps integrate multiple sites and business units	requires major changes in the company and its processes to implement

9. The ______ is the input to Materials Requirements Planning which lists the assemblies, subassemblies, parts and raw materials needed to produce one unit of finished product.
bill of materials	net requirements chart
inventory records	assembly time chart

10. A bill of materials lists the ____ .
times needed to perform all phases of production	production schedules for all products
components, ingredients, and materials required to produce an item	operations required to produce an item

11. One way to facilitate production scheduling and production in firms making a large number of different final products is to use _____.
planning bills	modular bills
phantom bills	overdue bills

12. The bill of materials contains information necessary to _____.
convert (explode) net requirements at one level into gross requirements at the next level	calculate quantities on hand and on order
convert gross requirements into net requirements	place an order to replenish the item

13. Which of the following statements best compares modular bills and phantom bills?
Both pertain to assemblies that are not inventoried	There is no difference between the two
Both pertain to assemblies that are inventoried	Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried

14. Enterprise resource planning (ERP) ____ .
has been made possible because of advances in hardware and software	uses client/server networks
creates commonality of databases	All of the above

15. The minimum record accuracy required for successful MRP is approximately _____.
lower than 90%	90%
95%	99%

16. In what way are Distribution Resource Planning (DRP) and Material Requirements Planning (MRP) similar?
Both employ similar logic and procedures	Both are employed in a manufacturing organization
Both work most efficiently with largest lot sizes	Both are employed by retail organizations

17. Given the following bill of materials. If the demand for product A is 30 units, and there are on hand 10 units of B and none of C, how many units of part D will be needed?
3	40
70	90

18. "Exploding" the bill of materials means _____.
converting the bill of materials into components and raw material requirements	identifying the lead time of all the components
determining the various components' quantities that are already on hand	determining the net requirements for all the components

19. Low level coding means that _____.
a final item has only a few levels in the BOM structure	it is the code for the missing items
a component item is coded at the lowest level at which it appears in the BOM structure	the top level of the BOM is below level zero and that BOM's are not organized around the finished product

20. Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is _____ weeks.
48	7
8	10