Operations Management: Processes and Supply Chains, 10e
(Krajewski et al.)
Chapter 16 Resource Planning
1) An ERP system revolves around a single comprehensive database that is made available
across the entire organi
...
Operations Management: Processes and Supply Chains, 10e
(Krajewski et al.)
Chapter 16 Resource Planning
1) An ERP system revolves around a single comprehensive database that is made available
across the entire organization.
Answer: TRUE
Reference: Enterprise Resource Planning
Difficulty: Easy
Keywords: enterprise resource planning, ERP
Learning Outcome: Describe the process and applications of enterprise resource planning
(ERP)
2) Companies that fully customize their ERP implementation reap the greatest rewards from
such systems since they can continue to use the same processes to which all employees are
accustomed.
Answer: FALSE
Reference: Enterprise Resource Planning
Difficulty: Moderate
Keywords: enterprise resource planning, ERP implementation
Learning Outcome: Describe the process and applications of enterprise resource planning
(ERP)
3) A firm's existing, older information system is called a "legacy system."
Answer: TRUE
Reference: Enterprise Resource Planning
Difficulty: Moderate
Keywords: enterprise resource planning, legacy system
4) Material requirements planning (MRP) is a computerized information system developed
specifically to aid in managing dependent demand inventory and scheduling replenishment
orders.
Answer: TRUE
Reference: Material Requirements Planning
Difficulty: Easy
Keywords: material requirements planning, MRP
5) A materials requirements planning (MRP) explosion occurs when the system is bombarded
with too many orders to schedule at one time.
Answer: FALSE
Reference: Material Requirements Planning
Difficulty: Easy
Keywords: material requirements planning, MRP explosion
6) A parent is any item manufactured from one or more components.
Answer: TRUE
Reference: Material Requirements Planning
Difficulty: Easy
Keywords: parent, component
16-17) Dependent demand for an item occurs because the quantity required for it varies with the
production plans of one or more parents.
Answer: TRUE
Reference: Material Requirements Planning
Difficulty: Moderate
Keywords: dependent demand, parent
8) A component is an item that may go through one or more operations to be transformed
into or become part of one or more parents.
Answer: TRUE
Reference: Material Requirements Planning
Difficulty: Easy
Keywords: component, parent, transform
9) If the demand for an independent demand item is continuous and uniform, so will the
planned order releases of its components.
Answer: FALSE
Reference: Material Requirements Planning
Difficulty: Moderate
Keywords: dependent demand, continuous
10) A bill of materials is a record of all the components of an item, the parent-component
relationships, and the usage quantities derived from engineering and process designs.
Answer: TRUE
Reference: Material Requirements Planning
Difficulty: Moderate
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