Quantitative Analysis for Management 14e -
Chapter 07 - Linear Programming Models -
Graphical and Computer Methods Test Banks
Practice Questions And Answers 2025/2026
Update!!!
34) How does a kanban system help identify bottlenecks and production problems?
Answer: Production bottlenecks and problems can be uncovered by reducing the amount of
inventory in the system. Inventory is often used to cover these problems by using it as a buffer
between adjacent operations. Many production managers remove containers and their associated
P-kanbans from the kanban system in order to "starve" the production line to uncover bottlenecks
and potential problems. When the production line stops or is starved for inventory, the problem
area is quickly located.
Diff: Moderate
Topic: JUST-IN-TIME INVENTORY CONTROL
LO: 6.11: Discuss just-in-time inventory concepts to reduce inventory levels and costs.
AACSB: Analytical thinking
Classification: Concept
35) Briefly describe the progression from MRP to ERP systems.
Answer: Over the years, MRP has evolved to include not only the materials required in
production but also the labor hours, material cost, and other resources related to production. When
approached in this fashion, the term MRP II is often used, and the word resource replaces the word
requirements. As this concept evolved and sophisticated computer software programs were
developed, these systems were called enterprise resource planning (ERP) systems. The objective
of an ERP system is to reduce costs by integrating all of the operations of a firm. This starts with
the supplier of the materials needed and flows through the organization to include invoicing the
customer for the final product. Data are entered once into a database, and then these data can be
quickly and easily accessed by anyone in the organization.
Diff: Moderate
Topic: ENTERPRISE RESOURCE PLANNING
LO: 6.12: Discuss enterprise resource planning systems.
AACSB: Analytical thinking
Classification: Concept
36) What are the potential benefits and detriments of an ERP implementation?
Answer: The benefits of a well-developed ERP system are reduced transaction costs and
increased speed and accuracy of information. However, there are drawbacks as well. The software
is expensive to buy and costly to customize. The implementation of an ERP system may require a
company to change its normal operations, and employees are often resistant to change. Also,
training employees on the use of the new software can be expensive.
Diff: Moderate
