Fall 2014 Exam 1 Study Guide Student Ve
Fall 2014 Exam 1 Study Guide (ANSWERS)
1. When a company uses an ERP system, the different functional areas of the business will share a common database.
True False
2. The objective of structural and infrastructure changes is the same: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.
True False
3. The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.
True False
4. In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.
True False
5. Final consumers can be found farthest downstream in the supply chain.
True False
6. "Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.
True False
7. It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.
True False
8. One of the major benefits of concurrent engineering is the reduction in time to complete the new-product development process.
True False
9. A process view emphasizes that it is important for a business to function as independent silos.
True False
10. Product design supports the business strategy.
True False
11. The master schedule should be frozen inside the production lead-time.
True False
12. Best practices in operations are best for all organizations.
True False
13. Forecasting demand in MRP Systems is based on the past demand patterns for components.
True False
14. Demand chain management tries to match supply and demand.
True False
15. Modular design offers new opportunities for product and process design.
True False
16. If there are multiple resources that process each transaction, then the process capacity is the sum of all the individual capacities of the resources.
True False
17. MRP systems work better in a line
1. When a company uses an ERP system, the different functional areas of the business will share a common database.
True False
2. The objective of structural and infrastructure changes is the same: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.
True False
3. The Economic Order Quantity model is extremely useful while making decisions on order quantities in MRP systems.
True False
4. In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.
True False
5. Final consumers can be found farthest downstream in the supply chain.
True False
6. "Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.
True False
7. It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.
True False
8. One of the major benefits of concurrent engineering is the reduction in time to complete the new-product development process.
True False
9. A process view emphasizes that it is important for a business to function as independent silos.
True False
10. Product design supports the business strategy.
True False
11. The master schedule should be frozen inside the production lead-time.
True False
12. Best practices in operations are best for all organizations.
True False
13. Forecasting demand in MRP Systems is based on the past demand patterns for components.
True False
14. Demand chain management tries to match supply and demand.
True False
15. Modular design offers new opportunities for product and process design.
True False
16. If there are multiple resources that process each transaction, then the process capacity is the sum of all the individual capacities of the resources.
True False
17. MRP systems work better in a line