SCMA 331 FINAL CH 14 Questions &Answer 2023/2024
Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record
integrity and insistence on record accuracy. Answer - True
MRP is generally practiced on items with dependent demand. Answer - True
Reduced inventory levels and faster response to market changes are both benefits of MRP. Answer -
True
A dependent demand item is so called because its demand is dependent on customer preferences.
Answer - False
The quantity required of a dependent demand item is computed from the demand for the final products
in which the item is used. Answer - True
Which of the following statements regarding Wheeled Coach is FALSE?
A) Wheeled Coach has found competitive advantage through MRP.
B) Wheeled Coach builds ambulances in a repetitive process.
C) Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to
rise.
D) Wheeled Coach's MRP system maintains excellent record integrity.
E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP. Answer - C
Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for
successful MRP implementation?
A) The material plan must meet both schedule requirements and facility capabilities.
B) The plan must be executed as designed.
,C) Inventory investment must be minimized.
D) Excellent record integrity must be maintained.
E) The process must adhere to stringent quality control standards. Answer - E
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children. Answer - D
Dependent demand and independent demand items differ in that:
A) for any product, all components are dependent-demand items.
B) the need for independent-demand items is forecast.
C) the need for dependent-demand items is calculated.
D) All of the above are true.
E) None of the above is true. Answer - D
Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels Answer - A
Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and
accurate records. Answer - material requirements planning or MRP
, ________ is a dependent demand technique that uses a bill of material, inventory, expected receipts,
and a master production schedule to determine material requirements. Answer - Material requirements
planning or MRP
Describe the role of record accuracy in Wheeled Coach's successful use of MRP. Answer - Wheeled
Coach's record integrity is excellent. Record accuracy is recognized as a fundamental ingredient of its
successful MRP implementation. Its cycle counters are charged with material audits that not only correct
errors but also investigate and correct problems.
What is MRP? Identify four benefits from its use. Answer - MRP or material requirements planning is a
dependent demand technique that uses a bill of material, inventory, expected receipts, and a master
production schedule to determine material requirements. The benefits of MRP include (1) better
response to customer orders, (2) faster response to market changes, (3) improved utilization of facilities
and labor, and (4) reduced inventory levels.
Lead times, inventory availability, and purchase orders outstanding are among the five things operations
managers must know for effective use of dependent inventory models. Answer - True
"Phantom bills" are bills of material for subassemblies that do not exist in reality. Answer - False
Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and
bolts. Answer - True
The time-phased product structure, unlike the bill of material, adds the concept of lead times. Answer -
True
If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent"
component of G. Answer - True
By convention, the top level in a product structure is designated level 1. Answer - False
Effective use of MRP and other dependent demand models does not require which of the following?
A) master production schedule
Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record
integrity and insistence on record accuracy. Answer - True
MRP is generally practiced on items with dependent demand. Answer - True
Reduced inventory levels and faster response to market changes are both benefits of MRP. Answer -
True
A dependent demand item is so called because its demand is dependent on customer preferences.
Answer - False
The quantity required of a dependent demand item is computed from the demand for the final products
in which the item is used. Answer - True
Which of the following statements regarding Wheeled Coach is FALSE?
A) Wheeled Coach has found competitive advantage through MRP.
B) Wheeled Coach builds ambulances in a repetitive process.
C) Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to
rise.
D) Wheeled Coach's MRP system maintains excellent record integrity.
E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP. Answer - C
Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for
successful MRP implementation?
A) The material plan must meet both schedule requirements and facility capabilities.
B) The plan must be executed as designed.
,C) Inventory investment must be minimized.
D) Excellent record integrity must be maintained.
E) The process must adhere to stringent quality control standards. Answer - E
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children. Answer - D
Dependent demand and independent demand items differ in that:
A) for any product, all components are dependent-demand items.
B) the need for independent-demand items is forecast.
C) the need for dependent-demand items is calculated.
D) All of the above are true.
E) None of the above is true. Answer - D
Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels Answer - A
Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and
accurate records. Answer - material requirements planning or MRP
, ________ is a dependent demand technique that uses a bill of material, inventory, expected receipts,
and a master production schedule to determine material requirements. Answer - Material requirements
planning or MRP
Describe the role of record accuracy in Wheeled Coach's successful use of MRP. Answer - Wheeled
Coach's record integrity is excellent. Record accuracy is recognized as a fundamental ingredient of its
successful MRP implementation. Its cycle counters are charged with material audits that not only correct
errors but also investigate and correct problems.
What is MRP? Identify four benefits from its use. Answer - MRP or material requirements planning is a
dependent demand technique that uses a bill of material, inventory, expected receipts, and a master
production schedule to determine material requirements. The benefits of MRP include (1) better
response to customer orders, (2) faster response to market changes, (3) improved utilization of facilities
and labor, and (4) reduced inventory levels.
Lead times, inventory availability, and purchase orders outstanding are among the five things operations
managers must know for effective use of dependent inventory models. Answer - True
"Phantom bills" are bills of material for subassemblies that do not exist in reality. Answer - False
Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and
bolts. Answer - True
The time-phased product structure, unlike the bill of material, adds the concept of lead times. Answer -
True
If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "parent"
component of G. Answer - True
By convention, the top level in a product structure is designated level 1. Answer - False
Effective use of MRP and other dependent demand models does not require which of the following?
A) master production schedule
