EXAM 1

Question 1

An ERP system is designed to provide the support for

Answer 1

coordinating decisions concurrent with planning and controlling the business.

Question 2

Performance metrics to evaluate integrated system effectiveness:

Answer 2

utilize data from multiple functions

are enabled by an ERP system

benefit from real-time data availability

Question 3

Which of the below is among the principle modules in an ERP system?

Answer 3

Sales and Marketing

Manufacturing Planning and Control

Human Resource Management

Question 4

Demand management activities must conform to:

Answer 4

a.
the strategy of the firm

b.	 the capabilities of manufacturing

c.	 the needs of customers

d.	 All options are correct

Question 5

Identifying all sources of demand is the principle task in

Answer 5

Demand Management

Question 6

MPC emphasis remains the same even as the nature of the product, process, or both, changes.

Answer 6

False

Question 7

One significant advantage that a firm gains from using an integrated ERP system is the ability to obtain current data on how the firm is performing.

Answer 7

True

Question 8

ERP systems enable measuring integrated performance across functions such as

Answer 8

purchasing, manufacturing, sales and marketing, and supply chain management.

Question 9

An ERP system provides a common platform for ___ data capture.

Answer 9

financial

Question 10

In the MPC process, determination of the end-item (finished product) production schedule (MPS) is most likely to occur in which time horizon?

Answer 10

Intermediate

Question 11

For companies that have repetitive manufacturing of standard products, MPS system is concerned with

Answer 11

assembly rate for end items (i.e. finished products)

Question 12

Which of the following MPC system activity balances the sales/marketing plans with available production resources?

Answer 12

Sales and operations planning (SOP)

Question 13

A typical ERP system is made up of functionally oriented units operating independently. T/F

Answer 13

False

Question 14

The design and performance metrics for the ERP system must reflect the strategy, processes, and customer needs of the firm. T/F

Answer 14

True

Question 15

Transaction processing relates to the posting and tracking of the activities that document the business. T/F

Answer 15

True

Question 16

Since the scope of applications included in standard ERP packages is very large, a separate data warehouse is not needed to be employed. T/F

Answer 16

False

Question 17

If the MPC system has remained unchanged for a significant length of time, it may no longer be appropriate to the company’s needs. T/F

Answer 17

True

Question 18

The essential task of the MPC system is to determine customer preferences via extensive use of market research and focus groups. T/F

Answer 18

False

Question 19

MPC systems provide the information upon which managers make effective decisions. T/F

Answer 19

True

Question 20

As a product’s sales volume increases over time, the MPC emphasis might shift from ‘flow’ to ‘project’ in the MPC classification schema. T/F

Answer 20

False

Question 21

Sales and Operations Planning aims to match supply to demand only at the product mix level. T/F

Answer 21

False

Question 22

Different manufacturing processes often dictate the need for different designs of the MPC system. T/F

Answer 22

True

Question 23

Matching strategic direction with MPC system design is

Answer 23

a dynamic element that shapes the MPC environment

Question 24

The project approach to MPC is for products

Answer 24

that are unique with long-lead-times

Question 25

Capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in which time horizon?

Answer 25

Long

Question 26

Matching supply and demand in terms of volume, is a

Answer 26

front-end issue addressed by MPC

Question 27

Configuration management is a critical step in MPC environments which is referred to as:

Answer 27

Assemble-to-Order

Question 28

The difference between the pattern of demand and the response by the company points out the important distinction between

Answer 28

forecasts and plans

Question 29

A key requirement for demand management communication with SOP is to provide

Answer 29

demand forecast information

Question 30

When a firm has plans for building bicycles at a constant rate throughout the year, the demand for the wheels that are needed is referred to as

Answer 30

dependent demand

Question 31

Physical distribution of finished goods is a key concern of demand management in MPC environments which is referred to as

Answer 31

Make-to Stock

Question 32

The largest and the most complex module in an ERP system is

Answer 32

Manufacturing Planning and Control

Question 33

Which term relates to the posting and tracking of activities that document a business?

Answer 33

Transaction processing

Question 34

ERP system modules may be

Answer 34

purchased from one or more vendors

Question 35

In the ATO environment, the primary task of demand management is to define inter and intracompany requirements.

Answer 35

False

Question 36

The customer order decoupling point is the point at which demand switches from dependent to independent (or vice versa).

Answer 36

True

Question 37

A key aspect of the management of the finished goods inventory is the determination of when, how much, and how to replenish the stock at a specific location.

Answer 37

True

Question 38

Collecting and coordinating all potential demands on manufacturing capacity are performed within the demand management function of the firm.

Answer 38

True

Question 39

Customer order decoupling point is sometimes called, the order penetration point.

Answer 39

True

Question 40

The demands of customers are dependent demands.

Answer 40

False

Question 41

Seasonal Index formula

Answer 41

Sales/Forecast

Question 42

Forecasts are expected to be more accurate for

Answer 42

total sales

Question 43

The amount of variability in demand will influence

Answer 43

magnitude of forecast errors

Question 44

Among the options below, the lowest level of aggregation in forecasting is for

Answer 44

Master Production Scheduling

Question 45

Average Percent Error is a measure of

Answer 45

forecast error magnitude

Question 46

If the demand for an item is dependent, then the timing and quantities must be forecast. T/F

Answer 46

F

Question 47

Mean Absolute Deviation (MAD) is a measure of forecast bias. T/F

Answer 47

F

Question 48

When evaluating a forecasting model, if mean error is close to zero, Mean Absolute Deviation (MAD) must also be close to zero. T/F

Answer 48

F

Question 49

Moving average techniques are useful for

Answer 49

smoothing out fluctuations in past data

Question 50

When choosing a forecasting technique, a critical trade-off that must be considered is that between

Answer 50

cost of forecasting and cost of forecast errors

Question 51

Which one of the following statements (about measures of forecast accuracy) is false?

Answer 51

Mean Absolute Deviation is a measure of forecast bias.

Question 52

Pyramid forecasting is used for

Answer 52

ensuring consistency between the various sources of forecasts

Question 53

The margin of error for forecasts of annual demand for a product will be smaller compared to the margin of error for forecasts of monthly demand if

Answer 53

Demand is independent from month to month

Question 54

Proposals to develop a new product line requires forecasts that are

Answer 54

long-term

Question 55

If Y = a + bX represents the regression equation used for forecasting, b can be negative. T/F

Answer 55

T

Question 56

When using linear regression forecasting, it is possible to derive seasonal indices when past demand displays a seasonal pattern. T/F

Answer 56

T

Question 57

Seasonal influence may be multiplicative or additive. T/F

Answer 57

T

Question 58

In time-series regression, time is the dependent variable. T/F

Answer 58

F

Question 59

The purpose of pyramid forecasting is to manage day-to-day variations in demand. T/F

Answer 59

F

Question 60

Forecasts generated by methods that rely on past data do not require inclusion of external information about future events that may influence demand. T/F

Answer 60

F

Question 61

The sum of seasonal indices should equal the number of seasons (except slight for difference due to rounding). T/F

Answer 61

T