INF 341 Chapter 4 Pre-Quiz

True/False Indicate whether the sentence or statement is true or false. _F___ 1. Good production decisions can be made knowing only the current level of finished goods inventory. _F___ 2. Production planners aggregate products into product groups to make forecasts and plans more accurate. _T___ 3. The Sales and Operations Planning process is used to combine the sales forecast with capacity information to determine a production plan for finished goods. _F___ 4. Demand Management in the SAP R/3 system is the process where sales forecasts are adjusted to incorporate the impact of marketing initiatives. _F___ 5. The MRP process determines the schedule of finished goods production. _T___ 6. Supply Chain Management is as much an approach to doing business with suppliers as it is a technology. __F__ 7. In a traditional supply chain, demand information is transmitted rapidly to all members of the supply chain. _F___ 8. ERP systems are necessary to implement good supply chain management. __F__ 9. The percentage of the order that the supplier provides in the first shipment is known as the first-rate. _T___ 10. Make to order items are produced to fill customers requests. __F__ 11. The cost it normally takes to manufacture a product, which is usually derived from historical data and any changes that have occurred since then, is known as a structured cost. _T___ 12. Rough-cut planning is a common term in manufacturing for aggregate planning. _T___ 13. The production plan for all finished goods is known as the MPS, or the master production schedule. _T___ 14. Another term for the recipe of a product is the bill of materials. __F__ 15. Lead times and lot sizing help a company determine the transfer of goods to the customer. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. _A___ 16. A make-to-stock production system is one where: a. Items are made for inventory in anticipation of sales orders b. Items are produced to fill specific customer orders c. Items are assembled for a specific customer order from an inventory of components d. Both a and c _E___ 17. An unexpected increase in product demand can lead to: a. A depletion of finished goods inventories b. A depletion of raw materials inventories c. Increased overtime and transportation expenses d. Both a and b e. All of the above ____ 18. In the SAP R/3 system, forecasts can be made using: a. Data from the Sales and Distribution module b. Data from the Controlling module 1

_C___ 19.

_D___ 20.

_B___ 21.

_C___ 22.

c. Both a and b d. None of the above The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year. They are expecting sales to increase by 3% this year. In addition, they are launching a promotional campaign in May, which they expect will increase sales in June by an additional 500 cases. What is the sales forecast for June of this year that Fitter Snacker should use? a. 6,628 c. 7,128 b. 6,935 d. 7,143 Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work week. They can work 2 hours of overtime per weekday, plus 4 hours on Saturday. They are developing an SOP for a month with 23 weekdays and 4 Saturdays. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on weekdays and Saturdays? a. 7,666 c. 9,582 b. 9,199 d. 10,249 The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January. If there are 22 days in the month, how many cases of snack bars should be produced in a 4-day week? a. 188 c. 940 b. 752 d. 1034 Fitter Snacker orders oats in 44,000 lb. batches. Given the following (incomplete) MRP record: Oats Lead Time = 2 weeks Gross Requirements (lb) Scheduled Receipts Planned Receipts 23,635 On Hand Planned Orders Week 1 Week 2 Week 3 Week 4 Week 5 18,000 24,323 24,872 18,464 17,938 44,000 5,635 25,312 440

What will the On Hand inventory be in Period 5 after the system calculated planned orders? a. 0 c. 8,038 b. 440 d. 14,038 _A___ 23. After MRP is run in the SAP R/3 system: a. The stock/requirements list and MRP list are both updated and show the same information. b. The MRP list is updated but the stock/requirements list is unaffected. c. The stock/requirements list is updated but the MRP list is unaffected d. None of the above. _D___ 24. In detailed production scheduling, longer production runs of a particular product: a. Increase the available capacity by reducing the frequency of setups. b. Increases finished goods inventory levels. c. Reduces finished goods inventory levels. d. Both a and b. e. Both a and c. _D___ 25. The order of the steps in the SAP R/3 production planning process are: a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP b. Sales Forecasting, Demand Planning, Demand Management, MRP c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management d. Sales Forecasting, Sales and Operations Planning, Demand Management, MRP

_C___ 26. The production plan for Fitter Snacker calls for 7000 cases for the snack bar product group in June. If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars, how many NRG-A bars should be produced in June? a. 500 c. 4690 b. 2010 d. 7000 __A__ 27. The costs it normally takes to manufacture a product, which is calculated from historical costs and any changes from that, are known as: a. Standard costs c. Known costs b. Abbreviated costs d. Estimated costs _D___ 28. ____ are disaggregated to generate detailed production schedules. a. Bills of materials c. Internet sales orders b. Production runs d. Rough-cut plans _A___ 29. What is the production plan for all finished goods? a. MPS - master production schedule c. PPR - production planning run b. QQR - quality query run d. RUN - run _C___ 30. What process answers the question What do we need to order to produce the product, and when do we need to order these raw materials? a. SF - sales forecasting c. MRP - materials requirements planning b. SOP - sales and operations planning d. DS - detailed scheduling __C__ 31. What metric tracks the number of times a supplier meets the agreed upon delivery date? a. Initial fill rate c. On-time performance b. Initial order lead time d. cash-to-cash cycle time _B___ 32. Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work week. They can work 2 hours of overtime per weekday, plus 4 hours on Saturday. They are developing an SOP for a month with 23 weekdays and 4 Saturdays. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on the weekdays only? a. 7,666 c. 9,582 b. 9,199 d. 10,249 __A__ 33. Fitter Snacker orders oats in 44,000 lb. batches. Given the following (incomplete) MRP record: Oats Lead Time = 2 weeks Gross Requirements (lb) Scheduled Receipts Planned Receipts 23,635 On Hand Planned Orders Week 1 Week 2 Week 3 Week 4 Week 5 18,000 24,323 24,872 18,464 17,938 44,000 5,635 25,312 440

What Planned Orders will the MRP logic create: a. An order for 44,000 units in Period 2 b. An order for 44,000 units in Period 3 c. An order for 44,000 units for periods 2 and 3 d. An order for 88,000 units for period 3 Short Answer 34. How can data be entered into the R/3 system on the shop floor? 3

Essay 35. What are the three general approaches to production? 36. What are the three principles that production planners follow? 37. List and explain each step of the production planning process. 38. SAP can provide sophisticated tools to support sales and operations planning. Is that all that is necessary for a company to be successful? Support your answer by discussing the departments of marketing and manufacturing. 39. What is repetitive manufacturing? 40. Describe the measurements of success with Supply Chain Management. Book 2 1. Designing organizational environments that enhance the processes for both employees and administration is an example of: a. b. c. d. 2. BPR Gap analysis Demings quality approach Business process needs assessment

Which of the following are considered the two most common ways of grouping organizational units a. b. c. d. introduced-grouping by function introverted-grouping by function process-grouping procedure-grouping

3.

The CEO of Cisco is: a. b. c. d. Pete Solvik Bill Gates John Chambers Larry Ellison

4.

Which of the following is not considered a common way to group organizational units a. b. c. d. introduced-grouping by function process-grouping procedure-grouping introverted-grouping by function

5.

The process-oriented basis of grouping individuals and activities is most appropriate when a. b. c. d. There exists interdependencies across entire work flows The organizational structure is primarily hierarchical The organizational structure is horizontal There exists a need to add massive amounts of new employees.

6.

According to Davenport a. b. c. d. a process is "a structure for action" a process is " a standardization for action" a process is "functionally representative of action" a process is "functionally derived"

7.

Which of the following are specific characteristics in regard to the business process definition a. b. c. d. processes are a sequence of activities processes have an end or purpose involve interaction evolve over scalable architectures

8.

Which of the following are listed in the book as typical business processes

a. b. c. d.

product development human resource management planning and resource allocation shipping management

9.

Which of the following is not listed in the book as a typical business process a. b. c. d. human resource management operations/logistics management customer relationship management product development

10. 11. 12. 13. 14. 15. 16.

T/F A focus on process encourages greater focus on customers. T/F Processes are highly measurable in that they indirectly relate to organizational goals. T/F A focus on process usually doesn't encourages greater focus on customers T/F Processes are highly measurable in that they directly related to organizational goals T/F Most major organizational processes are cross functional and span functional areas T/F Most major organizational processes are cross-integrated and span few process functions Which of the following is an example of a cross-functional process a. b. c. d. New product development order processing sales logistics

17.

Which of the following best describes the business architecture of Cisco a. b. horizontal hierarchical

c. d. 18. 19.

flexible environmental

T/F Cisco used a phased or gradual approach to ERP implementation. For ERP software vendor, Cisco chose: a. b. c. d. SAP PeopleSoft Oracle Baan

20.

Immediately after the cutover to its new ERP, Cisco noticed that on-time shipments to customers a. b. c. d. improved from 75 to 95 percent declined from 95 to 25 percent improved from 75 to 100 percent declined from 95 to 75 percent