True or False? (A) MRP system is designed for dealing with independent demand, b

Question

True or False?

(A) MRP system is designed for dealing with independent demand, because independent demand pattern tends to be predicatble, but lumpy.

(B) The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs.

(C) The quantity sent to a bottleneck operation could be split into two or more process batches to better utilize a bottleneck resource rather than process the entire batch.

(D) When we say that SPT priority rule guarantees the minimum average flow time, we assume that job setup time is independent of processing sequence of jobs.

(E) If we have to process multiple jobs with different processing times on a single resource, we can reduce the makespan by selecting the optimal sequencing rule.

Explanation / Answer

(A) MRP system is designed for dealing with independent demand, because independent demand pattern tends to be predictable, but lumpy. True

(B) The use of small lot sizes in lean operations is in conflict with the EOQ approach since setup costs tend to be significantly higher than holding costs. False These are not in conflict, since with low setup costs the EOQ leads to small lot size

(C) The quantity sent to a bottleneck operation could be split into two or more process batches to better utilize a bottleneck resource rather than process the entire batch. False rather then splitting it a sorter process for bottleneck is more desirable

(D) When we say that SPT priority rule guarantees the minimum average flow time, we assume that job setup time is independent of processing sequence of jobs. False, Shortest processing time (SPT): Priority rule that gives top priority to the waiting job whose operation time at a work centers is shortest

(E) If we have to process multiple jobs with different processing times on a single resource, we can reduce the makespan by selecting the optimal sequencing rule. True optimal sequence for minimizing the total number of tardy job

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