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Chapter 12 Supply Chain

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ANSWER KEY
Homework Chapter 12 – Managing Production
Multiple Choice: 1. D 2. C 3. C 4. B 5. D 6. C | 7. D 8. C 9. B 10. D 11. D |

Essay – Chapter 12/12S 1. What is MRP Nervousnes?.Can this condition affect DRP system as well?.
Answer:
MRP nervousness refers to the observation that any change, even a small one, in the requirements for items at the top of the bill can have drastic effects on items further down the bill. As you fall short of parts at the top, you cannot create more parts as you go down the bill, and at the bottom you have massive amounts of shortages.
MRP nervousness can affect DRP systems as well because they use MRP-style logic to feed accurate demand information into the master schedule.

2. What are the benefit of having formal Master Scheduling Process?. What happen to the firm that don’t follow some of basic rules of master scheduling?.
Answer:
It is good to have a formal master scheduling process because it ensures uniformity in the calculation and results, no matter who does the scheduling. If firms do not follow some of the basic rules of scheduling there would be a disconnect between the supply chain, sales, marketing, and finance and that almost ensures that there will be chaos among these units.

3. What is the different between information flow and information system? Do information system always have to be computerized? Why?
Answer:
An information flow focuses on “what” information is being moved, while an information “system” is concerned with the “how.” For example, kanban is a type of information system that, similar to MRP (another type of information system), helps manufacturers determine when to produce parts. Information systems do not have to be computerized—they can be paper-based or even communicated verbally.

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