Q&A Hero

Q: What provides visibility for a business at little or no cost? a. salesmanship b. communication c. publicity d. advertising

Q: Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity.

Q: Customer objections can be categorized as relating to a. product and price. b. need and sequence. c. source and pitch. d. timing and sequence.

Q: Smoothing a resource requirements profile to stay within capacity limits may increase setup costs.

Q: Promotion consists of marketing communictions that inform and persuade. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

Q: Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule. Item Lead Time Quantity on Hand Scheduled receipts J 1 0 K 2 20 30 in week 2 L 2 0 M 1 20 10 in week 1

Q: Advertising seeks to sell by informing, persuading, and reminding customers of the existence or superiority of a firm's product or service. a. True b. False

Q: Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7? Month 1 2 3 4 5 6 7 Requirement 100 150 200 150 100 150 250

Q: Prospecting is the ongoing search for new customers. a. True b. False

Q: Consider the following requirements for a certain product. Period 1 2 3 4 5 6 7 8 Gross requirements 0 200 200 500 0 400 0 400 Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a. Develop the lot-for-lot MRP table. b. Calculate the total relevant costs.

Q: An app is an application for business or entertainment loaded onto any mobile device. a. True b. False

Q: A very simple product (A) consists of a base (B) and a casting (C). The base consists of a plate (P) and three fasteners (F). There are currently 30 castings and 100 bases on hand. Final assembly takes one week. The casting has a lead time of three weeks. All other parts have one week lead times. There are no scheduled receipts. All components use the lot-for-lot technique. The master schedule requires 80 units of product A in week 5 and 120 in week 8. Produce the MRP for the upcoming eight weeks. Produce a list of all planned order releases.

Q: Because technology is changing, promotion is no longer based on communication. a. True b. False

Q: Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique?

Q: Domain name should be checked for availability and registered with ICANN. a. True b. False

Q: The best approach to promotional funding is allocating what can be spared. a. True b. False

Q: You have seen several methods for lot sizing in MRP. Why is lot sizing important in MRP? Can too much concern be given to lot sizing?

Q: The majority of small business advertising is institutional advertising. a. True b. False

Q: ________ is a lot-sizing technique that generates exactly what is required to meet the plan.

Q: Both wholesalers and retailers can utilize sales promotion tools to increase sales. a. True b. False

Q: Which MRP lot-sizing technique should be considered to be the goal (i.e., the technique of choice under ideal conditions)? A) Wagner-Whitin B) EOQ C) lot-for-lot D) POQ E) Silver-Meal

Q: Product advertising is intended to keep the public conscious of the company and its good reputation. a. True b. False

Q: Which of the following is TRUE regarding the POQ lot-sizing method? A) Each POQ interval is recalculated at the time of the order release. B) Each order quantity and POQ interval are recalculated at the time of the order release. C) The POQ interval and all order quantities remain fixed throughout the planning horizon. D) Each order quantity is recalculated at the time of the order release. E) POQ lot sizes are always at least as large as the EOQ lot sizes would be.

Q: What does the POQ interval equal? A) the number of periods of average demand covered by the safety stock B) the same number of periods that are on the "not to be rescheduled" side of the time fence C) EOQ / maximum gross requirement D) the number of periods until the incoming projected on hand runs out E) EOQ / average demand per period

Q: Advertising can make a product successful in the long term. a. True b. False

Q: Which lot-sizing technique orders the quantity needed during a predetermined time between orders? A) economic order quantity B) periodic order quantity C) lot-for-lot D) time fencing E) part-period balancing

Q: The most cost-efficient mode of personal selling may be the use of a self-employed sales or marketing representative. a. True b. False

Q: Which of the following statements regarding lot-sizing is TRUE? A) EOQ principles should be followed whenever economical. B) Too much concern with lot-sizing results in false accuracy. C) Lot-for-lot cannot be modified for scrap allowance or process constraints. D) The Wagner-Whitin algorithm simplifies lot size calculations. E) All of the above are true.

Q: Publicity is accurately described as free advertising. a. True b. False

Q: For the lot-sizing technique known as lot-for-lot to be appropriate: A) future demand should be known for several weeks. B) setup cost should be relatively small. C) annual volume should be rather low. D) item unit cost should be relatively small. E) the independent demand rate should be very stable.

Q: Sales promotion refers to promotional techniques other than personal selling or advertising. a. True b. False

Q: What lot-sizing technique is generally preferred when inventory holding costs are extremely high? A) lot-for-lot B) EOQ C) POQ D) the Wagner-Whitin algorithm E) All of the above are appropriate for the situation.

Q: Social websites have an increasing number of subscribers providing reviews of establishments, providing the astute entrepreneur with impersonal referrals. a. True b. False

Q: Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? A) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. B) The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. C) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. D) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. E) All of the above are true.

Q: Which of the following lot-sizing techniques results in the lowest holding costs? A) lot-for-lot B) EOQ C) POQ D) Wagner-Whitin algorithm E) the quantity discount model

Q: QR codes work like UPC codes: they identify the product on which they are found. a. True b. False

Q: MRP can be effective only if very accurate lot sizes are calculated in advance.

Q: Product advertising makes potential customers aware of a particular product or service and create a desire for it. a. True b. False

Q: In general, the lot-for-lot approach should be used whenever economical.

Q: The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Q: The promotional mix is influenced by three major factors: the geographical nature of the market to be reached, customer income, and the target market. a. True b. False

Q: Explain what is meant by "nervousness" of the MRP schedule. Provide an example. Name two tools that are particularly useful in reducing system nervousness in MRP systems.

Q: Inquiries by a potential customer that do not lead to a sale can still create what is known as a "promising prospect." a. True b. False

Q: What are time fences? Why are they used?

Q: The way a business combines its communications is a promotional mix. a. True b. False

Q: A working MRP system allows a firm to react to even minor changes in production requirements. Discuss both the advantage and disadvantage of having such ability.

Q: ________ are the time units in a material requirements planning (MRP) system.

Q: A generous salary with a commission cap is typically best for most small businesses. a. True b. False

Q: ________ are a way of allowing a segment of the master schedule to be designated as "not to be rescheduled."

Q: An issue with motivating salespeople is that the goals of the entrepreneur may differ from the salesperson. a. True b. False

Q: What is one of the tools that is particularly useful in reducing system nervousness in an MRP system? A) modular bills B) time phasing C) time fences D) lot sizing E) closed loop system

Q: Institutional advertising is primarily concerned with a company and its reputation. a. True b. False

Q: In MRP, system nervousness is caused by: A) management's attempt to continually respond to minor changes in production requirements. B) the use of the lot-for-lot approach. C) management's marking part of the master production schedule as "not to be rescheduled". D) the use of phantom bills of material. E) management's attempt to evaluate alternative plans before making a decision.

Q: Personal selling is promotion that is delivered in a one-on-one environment. a. True b. False

Q: What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement? A) net requirements planning B) time fencing C) pegging D) backtracking E) leveling

Q: While e-mail promotion provides a low-cost way to pinpoint customers and achieve response rates higher than those for banner ads, the issue of churning is a concern. a. True b. False

Q: The percentage of sales method for estimating promotional expenditures does not make sense for new businesses because these companies do not have historical sales figures. a. True b. False

Q: MRP is an excellent tool for scheduling components with variable lead times.

Q: Regular contact with news media is required if publicity programs are to be effective. a. True b. False

Q: Time fences divide that segment of the master schedule that can be revised from that section that is "not to be rescheduled."

Q: The preferred approach for estimating promotional costs is to use a percentage of sales for allocating expenses. a. True b. False

Q: In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ.

Q: Advertising is considered to be part of sales promotion. a. True b. False

Q: Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1. If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?

Q: Every communication has a receiver, a source, and a channel through which the message is passed. a. True b. False

Q: (a) Consider the product structure shown below. Assuming 1 A is to be made, how many units of each of the other items would need to be made? (b) If there are 20 of every item except A in on-hand inventory, how many As can be assembled?

Q: By first identifying the objectives for a promotional campaign, the small business owner will have a better idea of the budget required. a. True b. False

Q: An order has been placed for 50 units of Product A and 60 units of Product B. There are currently 35 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. (a) Calculate the net requirements for B. (b) Calculate the gross requirements for C. (c) Calculate the net requirements for C.

Q: Spending as much as the competition does for promotional efforts can lead the firm to copy the mistakes and successes of a rival. a. True b. False

Q: An order for 110 units of Product A has been made. There are currently 60 units of Product A on hand. Each A requires 2 units of Part B. There are 30 units of B available. (a) Calculate the net requirements for A. (b) Calculate the gross requirements for B. (c) Calculate the net requirements for B.

Q: Trade show groups claim that the cost of an exhibit is less than one-fourth the cost of a sales call. a. True b. False

Q: An order for 120 units of Product M has been made. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand. (a) Calculate the net requirements for M. (b) Calculate the gross requirements for N. (c) Calculate the net requirements for N.

Q: Personal selling is an effective method for promoting toothpaste. a. True b. False

Q: The large parts of a playground A-frame (from which to hang a swing or glider) consist of a ridge pole, four legs, and two side braces. Each pair of legs fastens to the ridge with one fastener set. Each side brace requires two fastener sets for attachment to the legs. Each fastener set includes one zinc-plated bolt, one lock-washer, and one nut. There is one order outstanding, to make 80 frame kits. There are 200 legs in inventory. There are no other large items in inventory, and no scheduled receipts. Fasteners are available from the small parts area. a. Draw the product structure tree b. Calculate the net requirements to fulfill the outstanding order.

Q: A small business that is search engine-friendly will have lower ranks and therefore it will attract more visitors. a. True b. False

Q: Explain the difference between a gross requirements plan and a net requirements plan.

Q: Specialty items are effective because they last, are generally delivered personally, and have value to the customer while they keep the name of the company or product in front of them. a. True b. False

Q: ________ are the result of adjusting gross requirements for inventory on hand and scheduled receipts.

Q: Straight salaries are best for motivating salespeople because of the financial security salaries provide. a. True b. False

Q: Distortion in MRP systems can be minimized when safety stock is held at the: A) purchased component or raw material level. B) work-in-process level. C) finished goods level. D) A and B E) A and C