chapter-1-introduction-to-supply-chain-management-7

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11. System nervousness is when even small changes
to upper-level production plans cause major changes in lower-level production
plans.

12. Computer
and information technologies MRP has evolved to become closed-loop MRP which
can now take into account APP, MPS, and CRP.

13. The
process of converting a parent item’s planned order releases into component
gross requirements is referred to as the ERP Implosion.

14. An
MRP system has a subassembly with a lot size of 100 units. In terms of filling
future requirements, this would mean that planned order releases for the
subassembly would always have to be exactly 100 units.

15. Lead
Capacity Strategy is a proactive approach that adds or subtracts capacity in
anticipation of future market conditions and demand.

16. Organizations
that choose to discontinue use of old and inefficient computer and information
systems in favor of adopting a modern ERP system are said to have implemented a
decentralized database solution.

17. When
a single company that is implementing an ERP system chooses to use one company
to provide an operations module, another to provide the sales and marketing
application, and yet another company to provide the finance and accounting
module, that single company has chosen to utilize the best-of-breed solution.

18. Two
reasons ERP implementations have been known to fail include: lack of employee
training on the new ERP system and lack of adequate resources to support these
complex and time consuming implementations.

19. Key
requirements to a successful ERP implementation include adequate computer
support, accurate system inputs, and flexible business processes that can
conform to the approaches used in the ERP software logic.

20. Lack
of communication between the implementing firm and its ERP software provider
can become a major hindrance for a successful implementation.

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