1. Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the
following is not a common criticism of ERP?
a) It doesn't allow decisions and databases from all parts of the organisation to be integrated
b) Implementation is expensive
c) The effect it has on businesses is disappointing
d) It can have a disruptive effect on the organisation's operations
2. Demand for a given item is said to be dependent if
a) the item has several children
b) there is a deep bill of materials
c) the finished products are mostly services (rather than goods)
d) there is a clearly identifiable parent
3. In MRP (Materials Requirements Planning) the Bill of Materials is:
a) The required output from a process over time
b) A list of required safety stock items
c) The sum of stock-on-hand and work-in-progress
d) The product structure showing where common parts are used
4. What is measurementship?
a) Trying to agree low objectives so as to look good later
b) Discussing "the numbers" at every opportunity
c) Surveying by naval architects.
d) Collecting too much performance data
5. The outputs of a MRP II system are:
a) Sales order priorities / Bills of Materials / Material Requirement Plans
b) Material Requirement Plans / scheduled purchase orders / capacity requirement plans
c) Stock quantities / Bills of Materials / Master Production Schedule
d) Capacity requirement plans / stock quantities / stock locations
6. Three levels of planning. What are they?
a) Top, middle and bottom
b) Headquarters, divisional and local
c) Operational, intermediate and strategic
d) None of these
7. Three inputs for every MRP system are:
a) Sales forecast, delivery costs, capacity plan
b) Average replenishment time, re-order point, economic order quantity
c) Stock on hand, Master Production Schedule, Bill of Materials
d) Bill of Materials, sales forecast, sales history
8. What three problems commonly hindering successful planning did we identify?
a) An oversized planning department; poor co-operation between managers and planners; managers with
little time to gather information.
b) Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
c) Lack of planning expertise; little top management support; misuse of planning specialists.
d) Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.
9. What is the more formal term for what is known as 'Plan B'?
a) A contingency plan
b) A circumstantial plan
c) A catastrophe plan
d) A convergence plan
10. What is the planning horizon?
a) The time ahead for which there is no information.
b) The time period within which uncertainty is very low.
c) The maximum time for which managers can make plans.
d) The time between making a plan and putting it into effect.