SOLVED

Section 1Â Â Dependent Demand 1) Wheeled Coach obtains competitive advantage through MRP in part because of their excellent record integrity and insistence on record accuracy. 2) MRP is generally practiced on items with dependent demand. 3) Reduced inventory levels and faster response to market changes are both benefits of MRP. 4) A dependent demand item is so called because its demand is dependent on customer preferences. 5) The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used. 6) Which of the following statements regarding Wheeled Coach is FALSE? A) Wheeled Coach has found competitive advantage through MRP. B) Wheeled Coach builds ambulances in a repetitive process. C) Wheeled Coach’s MRP system allowed the company to meet tight schedules, but caused inventory to rise. D) Wheeled Coach’s MRP system maintains excellent record integrity. E) Low inventory and high quality are two positive outcomes of Wheeled Coach’s use of MRP. 7) Which of the following is NOT one of the four key tasks that Wheeled Coach insists are necessary for successful MRP implementation? A) The material plan must meet both schedule requirements and facility capabilities. B) The plan must be executed as designed. C) Inventory investment must be minimized. D) Excellent record integrity must be maintained. E) The process must adhere to stringent quality control standards. 8) Demand for a given item is said to be dependent if: A) it originates from the external customer. B) there is a deep bill of material. C) the finished products are mostly services (rather than goods). D) there is a clearly identifiable parent. E) the item has several children. 9) Dependent demand and independent demand items differ in that: A) for any product, all components are dependent-demand items. B) the need for independent-demand items is forecast. C) the need for dependent-demand items is calculated. D) All of the above are true. E) None of the above is true. 10) Which of the following is NOT a key benefit of MRP? A) increased quality B) better response to customer orders C) faster response to market changes D) improved utilization of facilities and labor E) reduced inventory levels