Which of the following is FALSE concerning enterprise resource planning (ERP)?

Which of the following is FALSE concerning enterprise resource planning (ERP)?

A) It attempts to automate and integrate the majority of business processes.
B) It shares common data and practices across the enterprise.
C) It is inexpensive to implement.
D) It provides and accesses information in a real-time environment.
E) ERP software promises reduced transaction costs.


Answer: C

Enterprise resource planning (ERP):

Enterprise resource planning (ERP):

A) seldom requires software upgrade or enhancement.
B) does not integrate well with functional areas other than operations.
C) is inexpensive to implement.
D) automates and integrates the majority of business processes.
E) all of the above


Answer: D

Distribution resource planning (DRP) is:

Distribution resource planning (DRP) is:

A) a transportation plan to ship materials to warehouses.
B) a time-phased stock replenishment plan for all levels of a distribution network.
C) a shipping plan from a central warehouse to retail warehouses.
D) material requirements planning with a feedback loop from distribution centers.
E) a material requirements planning package used exclusively by warehouses.


Answer: B

Which of the following statements regarding MRP in services is TRUE?

Which of the following statements regarding MRP in services is TRUE?

A) MRP is for manufacturing only, and it is not applicable to services.
B) MRP can be used in services, but only in those that offer very limited customization.
C) MRP only works in services for demand that is independent.
D) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.
E) None of the above is true.


Answer: D

MRP II is accurately described as:

MRP II is accurately described as:

A) MRP software designed for services.
B) MRP with a new set of computer programs that execute on microcomputers.
C) material resource planning.
D) an enhancement of MRP that plans for all levels of the supply chain.
E) a new generation of MRP software that extends MRP to planning and scheduling functions.


Answer: C

If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

If a load report (resource requirements profile) shows a work center scheduled beyond capacity:

A) the company must add capacity by enlarging the facility.
B) the company must add capacity by such tactics as overtime and subcontracting.
C) the work center's load may be smoothed by such tactics as operations splitting or lot splitting.
D) the aggregate plan must be revised.
E) the Wagner-Whitin algorithm should be used to rebalance the load.


Answer: C