Define disadvantage of a typical erp system

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Reference no: EM13720977

1. The Enterprise Resource Planning (ERP) system is a complex computer based information system that is used to integrate most of the typical business operations. While benefits from implementing such a system can be significant, there are disadvantages as well. Which of the following is a disadvantage of a typical ERP system?

A) Globalizes communication & collaboration

B) Streamlines flows & provides real-time operating information

C) It eliminates legacy systems and fragmentation between databases

D) Expensive to purchase and also implement.

2. One significant advantage of a "Vendor Managed Inventory" strategy is ____.

A) Increased customer attention to planning

B) Individual customer purchase orders for each delivery are not required.

C) Purchase Orders are required for each planned delivery.

D) Suppliers pay the cost of shipping.

3. Implementing JIT is expected to result in the following.

A) Increase in product quality

B) Increased total process cycle time

C) More WIP compared to push systems.

D) More rework

E) No change in the utilization of factory manufacturing space.

4. EOQ is the procurement order quantity that minimizes both ___________ and ordering costs.

A) holding costs

B) logistics costs

C) transit costs

D) safety stock

E) set-up costs

5. All of the following are "engineering" activities during the design and development phase of a new product introduction except _____.

A) Initiate Alpha testing

B) Verify product reliability

C) Develop detailed specifications

D) Define target customer needs

6. Measuring manufacturing capacity is the same as measuring the maximum____.

A) number of units.

B) rate at which the volume is produced

C) square footage (space available) of the facility

D) time that it takes to complete a manufacturing build

7. A procured item that is expensive, complex and has few qualified suppliers can be interpreted by a purchasing organization as a commodity with_____.

A) low value potential and low complexity.

B) low value potential and high complexity.

C) high value potential and high complexity.

D) high value potential and low complexity.

8. __________ is the overlapping of development phases the typically reduces development time to market of products.

A) Alpha engineering process

B) Serial development process


D) Concurrent engineering process

9. The product demand for the next 4 successive quarters is 10, 30, 40, and 20 units respectively. What is the 3rd quarter production schedule for a "chase" production strategy?

A) 30 units

B) 40 units

C) 10 units

D) 25 units

10. A major characteristic of a modern business's supply chain information system is ______.

A) a system that integrates all transportation, warehousing, purchasing and manufacturing systems

B) a system comprised of modules or components that are independently controlled by a separate functional organizations.

C) inexpensive to operate

D) difficult to function effectively within global operations

11. Assume that manufacturing uses 20 units per day of a supplied product in their manufacturing process and the lead time to purchase this supplied product is 5 days. There is a safety stock requirement of 25 units. At what level of inventory does the procurement department schedule a replacement shipment?

A) cannot determine from the information provided.

B) 125 units

C) 25 units

D) 225 units

12. The product demand for the next 4 successive quarters is 20, 30, 40, and 20 units respectively. What is the 2nd quarter production schedule for a "level" production strategy?

A) 25 units

B) 20 units

C) 40 units

D) 28 units

13. Carrying or storage costs refer to inventory costs such as ____________

A) set-up costs

B) warehouse utilities costs

C) logistics costs

D) capital costs

14. Both "responsiveness" and "efficiency" are two supply chain strategies that are carefully managed by a firm. All of the following are characteristics of "efficiency" except for one item listed. Identify the one item that is not this characteristic.

A) minimal inventory

B) high utilization

C) higher margins

D) lower margins

E) minimize operational and logistics costs.

15. Reliability, Responsiveness, Empathy, and Tangibles are all dimensions of "Service Quality". One additional dimension to "Service Quality" referenced in the lecture and text is ________.

A) Performance

B) Assurance

C) Zero defects

D) Robustness

16. In supply chain materials management, a BOM is __________.

A) master schedule

B) inventory record

C) a listing of all the raw materials, parts, subassemblies and assemblies needed to produce one unit of a product.

D) product structure tree

17. MRP is an information system designed to plan the ________ required to produce a product.

A) logistics

B) sells

C) materials

D) order

18. A simplified and complete definition of "lean" in a business system is the _________.

A) Recognition of and elimination of bottlenecks

B) Standardization of non-value processes

C) The conversion of non-value activities to value added activities

D) Identification and elimination of waste and methods to accelerate operational processes

19. Which of the following operational strategies is not a supportive design strategy for improving supply chain performance?

A) postponement

B) component standardization

C) aggregate risk pooling

D) multiple product configurations

20. The ability to repair or replace parts or subassemblies in a product design is referred to as Design for _________.

A) Repeatability

B) Testability

C) Maintainability

D) Function ability

21. Which of the following is a major goal of an effective warehousing strategy?

A) to improve operational efficiency emphasizing LTL hauls

B) to maximize the use of inventory

C) to increase customer lead times

D) to reduce transportation costs

22. A service firm that is hired to take care of logistics requirements for other companies is a:

A) freight forwarder.

B) common carrier.

C) contract carrier.

D) 3PL provider.

23. This transportation mode is often the most expensive on a per pound (weight) basis.

A) rail

B) air

C) motor freight

D) water

24. The following is a major characteristic of "Pull" systems.

A) Long production runs

B) Traditional approach to manufacturing

C) Multiple stocking levels

D) Demand responsive

E) High finished goods inventories

25. A major reason to both in-source and out-source a component or part is _________.

A) No one source can provide the capacity to meet customer requirements.

B) There is no build or procurement cost advantage offered by the choices.

C) The manufacturer maintains familiarity with the process technology and also maintains two sources for the critical component/part.

D) A make/buy study was not performed and therefore a decision could not be reached

26. The definition of an inter-modal logistics solution is the use of________.

A) only motor and rail carriers combined

B) only low cost carriers without regard to delivery date.

C) only internal carriers to the manufacturing company.

D) more than one type of carrier.

27. All of the following are examples of "waste" based on the lean criteria explained in the text except one of these choices. Which of the following is NOT an example of operational "waste"?

A) Building products to finished goods.

B) In-plant conveyors

C) Stockroom inventory

D) Transformation processes

28. One typical characteristic of a "pull" manufacturing system is _________.

A) postponement or delayed differentiation

B) moving inventory downstream in advance of demand

C) bottlenecks affecting operational cycle time

D) multiple stocking levels

E) long production runs

29. Product manufactured to finished goods inventory is an example of the following manufacturing strategy.

A) Made to Stock

B) Make and/or Buy

C) Toyota Product System (TPS)

D) Made to Order

30. A(an) ___________drives the MRP process defining a timetable of finished product requirements.


B) Master Schedule



31. This dimension of quality identifies how long a product can go without failure or time duration between failures.

A) warranty period

B) reliability

C) maintenance

D) lifetime

E) serviceability

32. One of the advantages of "outsourcing" is__________.

A) high strategic flexibility

B) high degree of control

C) economies of scale

D) significant return on investment

33. Comparing the transportation strategies of an "efficient" versus " responsive" supply chain suggests that_______.

A) "responsive" chains have a greater reliance on low cost transportation modes.

B) "efficient" chains source suppliers within the geographic vicinity of the manufacturing facility.

C) "responsive" chains source suppliers within the geographic vicinity of the manufacturing facility.

D) "efficient" chains have a greater reliance on low cost transportation modes.

34. Identify the best performance below for an inventory turns ratio. _________.

A) 10

B) 30

C) material management is not affected by inventory turns.

D) 20

35. The objectives of holding inventory include all of the following except ________.

A) protecting against stock-outs

B) meeting anticipated demand

C) smoothing production requirements

D) minimizing operating costs

36. The primary reason a manufacturer would establish a safety stock of an inventory item is ______.

A) utilization of stockroom space

B) inaccuracies of the enterprise resource planning system in use.

C) variable customer demand

D) safety stocks are not required in modern manufacturing

37. Calculate the "Perfect Order" customer service metric based on the following: Delivered Complete 99%, Delivered On-Time 95%, Delivered Damage Free 92% and Billed Accurately 100%.

A) 96.5%

B) 386%

C) 86.5%

D) Cannot be determined due to a lack of base information.

38. The EOQ "carrying cost" for a purchased subassembly is $3,480. What is the total expense cost of this EOQ order (not including the unit cost)?

A) $6,960

B) Insufficient information to determine

C) $3,480

D) $1,740

39. The 5 step process, in sequence, for introducing new products to market that are considered typical by most businesses is the following:

A) planning, concept development, design and development, launch, beta testing

B) concept development, implementation, design, commercial preparation and launch

C) concept development, planning, design and development, commercial preparation and launch

D) planning, concept development, design and development, beta testing and launch

40. Design for the Environment as described in class includes all of the following except for one item listed. Which of the following is not a Design for Environment objective?

A) Not designed for repair or disassembly

B) Less material used to create

C) Longer product life

D) Less energy to process

E) Reduced packaging material

41. The following is often a disadvantage of implementing a modern ERP system.

A) Streamlines Flows & Provides Real-time Operating Information

B) Eliminates Fragmentation of "Legacy" Databases & Systems

C) Integrates Processes

D) Globalizes Communication & Collaboration

E) Requires Process Modification or Changes to Adopt the ERP Software

42. ___________ is defined as the time required to replenish an inventory stock.

A) Safety stock

B) Reorder point


D) Lead time

43. Predicting customer orders so that decisions about various operations in a firm can be planned were described in the text as this operational element of the business?

A) Manufacturing management

B) Return service management

C) Specification management

D) Order fulfillment management

44. The design capacity of a manufacturing process is 100 units per day. The effective capacity is 90 units per day and the actual capacity is 80 units today. The resulting efficiency of this process is _____.

A) 80.0%

B) 88.8%

C) 100%

D) 90.0%

45. Characterize the process "strategic planning"

A) business planning that focuses on near term, day to day events.

B) business planning that requires forecasts of profit projections

C) business planning that focuses on major initiatives/corporate direction in upcoming years.

D) functional department planning of budgets

46. Make-to-Order is defined as a product or service manufactured_________.

A) only after receipt of the customer order

B) in anticipation of the customer order

C) and then moved to finished goods inventory.

D) as directed by the build forecast.

47. _________is the term used to describe the consolidation of numerous production functions, from the extraction of the raw materials to the distribution and marketing of the finished products, under the direction of one firm.

A) Vertical integration

B) Keiretsu

C) Virtual integration

D) Horizontal integration

48. A typical characteristic of a "push" supply chain system is ________.

A) long production runs

B) demand responsive

C) flexible and quick manufacturing

D) a current trend

49. One of the following is an e-business advantage compared to routinely established businesses:

A) low entry costs

B) transaction integrity

C) security

D) lack of sensory experience

50. All of the following are characteristics of a chase demand strategy except for one item listed. Identify this one item.

A) minimal inventories

B) low inventory costs

C) production is relatively constant

D) high hiring/firing costs

51. A blanket purchase order is a PO that is used when internal production schedules are stable over long periods usually one or two years and therefore the single PO defines ___________ over a significant period of time.

A) a customer managed inventory process

B) a standardized specification

C) multiple delivery dates

D) short term pricing

52. Basic warehouse operations include the tasks of Receiving, Put Away, Storage, Order Picking, Shipping Preparation and Shipping. Which  one of these operations is eliminated in a cross-docking operation?

A) order picking

B) shipping

C) receiving

D) storage

53. The term "logistics" in a business includes all of the following?

A) Inventory control, warehousing, and transportation management

B) Manufacturing, inventory control, and warehousing.

C) Order fulfillment, procurement, and transportation management

D) Procurement, warehousing, and transportation management

54. Manufacturing automobiles such as the Honda Accord (high volume) is an example of a production process characterized as _______.

A) connected line flow

B) disconnected line flow

C) continuous flow

D) job shop

55. In the article - "What the Guys in the Funny Brown Shorts Are Really Doing", UPS was not just delivering packages but also _________.

A) providing item shipment tracking information to its customers.

B) "synchronizing the global supply chain" for select customers.

C) planning the delivery services of the future.

D) insuring the contents at multiple times original item value.

56. A major barrier to a sustainable (green) "product return" strategy is ________.

A) minimal energy to dispose

B) the design does not facilitate recycling or reuse

C) efficient reverse logistics system

D) easy to disassemble

57. All of the following except for one answer are major attributes of modern supply chains. Which of the following is NOT a major attribute of a modern supply chains?

A) Reliability

B) Responsiveness

C) Flexibility

D) Long production runs

E) Customer driven

58. A "bottleneck" in a manufacturing or service process is defined as an operation with the _________.

A) highest effective capacity of any operation.

B) the calculated design capacity.

C) highest level of constraint.

D) highest quantity of manufactured product produced.

59. One major difference between a traditional versus internet order management system is ______.

A) payment typically accompanies internet orders prior to product shipment

B) invoicing is not required for internet orders

C) traditional systems are less complex to initiate.

D) both processes are typically identical regarding sequence

60. An international standard that identifies a quality system is _____.


B) ISO 9000


D) OSHA 14000

Reference no: EM13720977


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