ERP Godin Final

In process industries like chemicals and beverages, the bill of materials is also known as a(n)

Formula

Which one of the following best describes a work center?

A location where value-added work needed to produce a material is carried out

All of the following can serve as a work center except

A shipping dock

Which one of the following best defines material staging?

Component materials are moved from storage and prepared for use

What term identifies the list of materials needed to produce one or more units of a finished good?

Bill of materials

At what level are material requirements planning (MRP) and work scheduling data defined?

Plant level

Which of the following is not a step in the production process?

Billing

If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?

Need to increase inventory

What step in the production process is used to enter data in to the SAP ERP system when the operations needed to produce a materials are completed?

Confirmation

What operation in the routing is sometimes necessary to prepare materials for use in production?

Material staging

Which of the following is not an outcome of a goods issue to a production order?

A goods receipt is automatically recorded

In the production process, a goods issue reflects

Issuing raw materials or semifinished goods to a production order

What is a stock transfer used for?

To physically move materials within the enterprise from one organizational level or location to another

Which of the following represents the hierarchy of a warehouse?

Warehouse, storage type, storage section, storage bin

The money tied up in inventory best represents

An opportunity cost.

A purchase requisition is

A request to purchase materials.

Requirements in the material planning process specify

How many of the materials are needed and when they are needed.

The organizational data elements in material planning are:

Client, company code, plant, storage location.

A company has two options for procuring materials: make or buy. Which MRP data view of the material master will the ERP system consider for this decision?

MRP 2

Which of the following statements best represents what procurement type indicates?

Whether a material is produced in house, obtained externally, both, or none

MRP type specifies

The production control technique used in planning.

Replenishment lead time is

The time between placing an order and receiving the materials.

Which of the following statements about consumption-based planning is TRUE?

Planning is based on historical data.

Which of the following options represents categories of consumption-based planning?

Forecast-based planning, time-phased planning, reorder-point planning

A company would be most likely to apply consumption-based planning for which of the following products?

Pen

The MRP technique calculates the requirements for a material based on

The material's dependence on other materials.

Exploding the BOM refers to

Calculating and planning requirements for materials at all levels of the BOM.

Requirements that are calculated based on actual and forecasted sales are known as

Planned independent requirements.

The lot size key specifies the

Procedure that is used to determine the lot size.

The static lot-sizing procedure

Specifies a fixed quantity based on either fixed lot size or lot-for-lot.

Setup time, processing time, and interoperation time are elements of

In-house production time.

Setup time is the time required to

Set up the work centers used in production.

In SAP ERP production planning strategy, net requirements planning (Strategy 10), procurement proposals are based on

PIRs, without regard to CIRs.

Consider the following scenario, then choose which one of the options below corresponds to the level of CIRs and PIRs after consumption. Before consumption: Procurement proposal for CIRs: 50Procurement proposal for PIRs: 50

CIRs: 50, PIRs: 0

What does SOP stand for?

Sales and operations planning

What is SOP used for?

Forecasting and planning

After the SOP process has generated the production plan,

The plan is transferred to demand management.

The planning table is best defined as

A spreadsheet-like tool used to complete the tasks in SOP.

Given the information below, calculate disaggregated quantities for touring bikes (TOUR) and off-road bikes (ORBK). Total production = 100 TOUR proportion factor = 35ORBK proportion factor = 65

TOUR = 35, ORBK = 65

Which of the following statements about the goods receipt step are NOT true?

It results in a decrease in inventory.

The key organizational level associated with inventory management is

Storage location.

When do unplanned receipts occur?

When a reference document does not exist

Which of the following scenarios requires material-to-material posting?

Changing the material number of a material

Which of the following options is appropriate when two locations are physically close to each other and there is no significant time lag between issue and receipt?

One-step procedure

A storage location-to-storage location transfer involves which of the following?

A stock transfer between two storage locations within the same plant

Shelf storage, pallet storage, and rack storage are examples of

Storage types

A storage type is a division of a warehouse based on the characteristics of the

Space, materials, and activity.

A picking area groups which of the following elements?

Storage bins, based on similar picking strategies

Shelves, stacks, and aisles are examples of

Coordinate systems for addresses.

Which of the following represents the document used to plan the movement of materials into and out of bins in a warehouse?

Transfer request

Which of the following is a request to change the status of the material?

Posting change notice

When creating a transfer order, you find that a particular material has to be moved from multiple source bins. Which of the following statements follows from this scenario?

The transfer order will have multiple line items for the material.

The ERP system can create transfer orders automatically, but only when

A reference document exists.

Warehouse management is typically used

By organizations that have either large quantities of materials or an expensive inventory.