Question 11: briefly describe MRP II and closed-loop MRP.
MRP II did not replace or improve MRP. Rather, it expanded the scope of materials planning to include capacity requirements planning, and to involve other functional areas of the organization such as marketing and finance in the planning process.
Production, marketing, and finance personnel work toward developing a master production schedule. Although manufacturing people will have a major input in determining that schedule and a major responsibility for making it work, marketing and finance will also have important inputs and responsibilities. The rationale for having these functional areas work together is the ...view middle of the document...
Independent demand can be ordered on a continual basis.
Question 15: How does the purpose of ERP differ from the purpose of MRP II?
ERP is just Like MRP II, it typically has an MRP core. ERP represents an expanded effort to integrate standardized record keeping that will permit information sharing among different areas of an organization in order to manage the system more effectively.
Question 16: What are some unforeseen costs of ERP?
2. Integration and testing.
3. Data conversion.
4. Data analysis.
5. Consultants ad infinitum.
6. Replacing your best and brightest.
7. Implementation teams can never stop.
8. Waiting for ROI. And the project team is not going to be rewarded until their efforts pay off.
Question 5: What is the bullwhip effect, and why does it occur? How can it be overcome?
Variations in demand at the consumer end of a supply chain tend to ripple backwards through the chain. Moreover, periodic ordering and reaction to shortages can magnify variations, causing inventories to oscillate in increasingly larger swings. This is known as the bullwhip effect, because the pattern of demand variation is analogous to the motion of a bullwhip response to slight jerking of the handle. Consequently, shortages and surpluses occur throughout the chain, resulting in higher costs and lower customer satisfaction, unless preventive action is taken.
The causes of inventory variability can be not only demand variability but also factors such as quality problems, labor problems, unusual weather conditions, and delays in shipments of goods. Adding to this can be communication delays,...