OMIS 338 Exam 3 Questions with Complete Answers Latest Version 2024-2025
Demand characteristics for finished goods (Independent demand) and components (Dependent
demand) - Answers o Components of dependent demand:
-Master production schedule
-Specifications or bill of material
-Accurate inventory availability
-Purchase orders outstanding
-Lead times
o Demand characteristics (Independent demand):
Customers' orders
Finished goods
Forecast and Booked Customer orders
EOQ & ROP
o The structure, inputs and outputs of the MRP process - Answers o The structure of MRP is the Master
Production Schedule (a specified, planned schedule of what is to be made and when)
o Inputs: Bill-of- material, lead times, inventory data, purchasing data
o Outputs: MRP by period report, MRP by date report, Planned order report, Purchase advice, and
Exception reports.
o MRP Functions - Answers o MRP functions:
Facilitates re-planning when changes occur
System nervousness can result from too many changes
Time fences put limits on re-planning
Pegging links each item to its parent allowing effective analysis of changes
o ERP Processes: an extension of the MRP system to tie in customers and suppliers
, Allows automation and integration of many business processes
Shares common databases and business practices
Produces information in real time
Coordinates business from supplier evaluation to customer invoicing
Functions:
• Basic MRP
• Finance
• Human Resources
• Supply-Chain Management
• Customer relationship management
• Sustainability
Advantages:
• ERP systems have the potential to
o Reduce transaction costs
o Increase the speed and accuracy of information
• Facilitates a strategic emphasis on JIT systems and supply chain integration
Disadvantage:
• Can be expensive and time-consuming to install
Limitations - Answers MRP does not do detailed scheduling - it plans
Works best in product focused, repetitive environments
Requires fixed lead time and infinite size time buckets
MRP II Functions - Answers o MRP II Functions:
Outputs can include scrap, packaging waste, effluent, carbon emissions
Data used by purchasing, production scheduling, capacity planning, inventory, warehouse management.
Closed loop MRP - Answers o Closed loop MRP:
Demand characteristics for finished goods (Independent demand) and components (Dependent
demand) - Answers o Components of dependent demand:
-Master production schedule
-Specifications or bill of material
-Accurate inventory availability
-Purchase orders outstanding
-Lead times
o Demand characteristics (Independent demand):
Customers' orders
Finished goods
Forecast and Booked Customer orders
EOQ & ROP
o The structure, inputs and outputs of the MRP process - Answers o The structure of MRP is the Master
Production Schedule (a specified, planned schedule of what is to be made and when)
o Inputs: Bill-of- material, lead times, inventory data, purchasing data
o Outputs: MRP by period report, MRP by date report, Planned order report, Purchase advice, and
Exception reports.
o MRP Functions - Answers o MRP functions:
Facilitates re-planning when changes occur
System nervousness can result from too many changes
Time fences put limits on re-planning
Pegging links each item to its parent allowing effective analysis of changes
o ERP Processes: an extension of the MRP system to tie in customers and suppliers
, Allows automation and integration of many business processes
Shares common databases and business practices
Produces information in real time
Coordinates business from supplier evaluation to customer invoicing
Functions:
• Basic MRP
• Finance
• Human Resources
• Supply-Chain Management
• Customer relationship management
• Sustainability
Advantages:
• ERP systems have the potential to
o Reduce transaction costs
o Increase the speed and accuracy of information
• Facilitates a strategic emphasis on JIT systems and supply chain integration
Disadvantage:
• Can be expensive and time-consuming to install
Limitations - Answers MRP does not do detailed scheduling - it plans
Works best in product focused, repetitive environments
Requires fixed lead time and infinite size time buckets
MRP II Functions - Answers o MRP II Functions:
Outputs can include scrap, packaging waste, effluent, carbon emissions
Data used by purchasing, production scheduling, capacity planning, inventory, warehouse management.
Closed loop MRP - Answers o Closed loop MRP:
