Chapter 1: Business Functions and Business Processes
MULTIPLE CHOICE
1. Which of the following is a functional area of operation?
a.
Packaging
c.
b.
Supply Chain
d.
Management
ANS: B
PTS: 1
REF: 2
2. Which business function is performed by Accounting and Finance?
a.
Cost allocation and
c.
control
b.
Taking sales orders
d.
ANS: A
PTS: 1
Shipping
Baking
Benefits
Plant maintenance
REF: 2
3. What are the computers, people, procedures, and software that store, organize, and deliver
information in an organization?
a.
The CPU
c.
Information systems
b.
The Process System
d.
Personnel systems
ANS: C
PTS: 1
REF: 3
4. Today’s managers are beginning to think in terms of business process. A business process cuts across
which functional areas of operation?
a.
Marketing and Sales
d.
Human Resources
b.
Supply Chain
e.
All of the above
Management
c.
Accounting and
Finance
ANS: E
PTS: 1
REF: 3
5. Information systems that can be designed so that functional areas of operation share data are called:
a.
integrated
c.
non-middleware
information systems
information systems
b.
complete information d.
linked information
systems
systems
ANS: A
PTS: 1
REF: 4
6. Estimates of future product demand, which are the amount of a product that customers will want to
buy, are called:
a.
sales forecasts
c.
sales diving
b.
sales divining
d.
sales deriving
ANS: A
PTS: 1
REF: 7
7. Which of the following is an input to the Marketing and Sales functional area?
a.
Production plans
c.
Per-unit cost
b.
Raw material orders
d.
Accounts payable
data
ANS: C
PTS: 1
REF: 10
8. When purchasing a computer, the functional area responsible for handling the financial help for
purchasing that computer is:
a.
Marketing and Sales
c.
Supply Chain
Management
b.
Accounting and
d.
Human Resources
Finance
ANS: B
PTS: 1
REF: 3
9. Successful business managers view their business operations from the perspective of a(n):
a.
satisfied customer
c.
profitable sale
b.
positive cash flow
d.
accurate sales
forecast
ANS: A
PTS: 1
REF: 4
10. When manufacturing runs out of raw material, it is known as a(n):
a.
shortfall
c.
b.
empty shelf
d.
ANS: D
PTS: 1
REF: 11
11. ____ can result in management overinvesting in inventory.
a.
Bulging raw
c.
materials
b.
Stockup
d.
ANS: C
PTS: 1
depletion
stockout
Safety stock
Excess baggage
REF: 11
12. Which of the following outputs would emerge from the Accounting and Finance functional area?
a.
Packaging orders
c.
Regulation
compliance
b.
Sales strategy
d.
Financial reports
ANS: D
PTS: 1
REF: 13
13. Which of the following is an input to HR?
a.
Personnel forecasts
b.
ANS: A
Sales data
PTS: 1
c.
d.
Layoff and recall
company policy
Travel expense
company policy
REF: 14
COMPLETION
1. ____________________ programs are core software used by companies to coordinate information in
every area of the business.
ANS:
Enterprise Resource Planning
ERP
Enterprise Resource Planning (ERP)
ERP (Enterprise Resource Planning)
PTS: 1
REF: 1
2. A collection of activities that takes one or more kinds of input and creates an output that is of value to
the customer is called a(n) ____________________.
ANS: business process
PTS: 1
REF: 1
3. The business functions of financial accounting, cost allocation and control, planning and budgeting,
and cash-flow management take place in the ____________________ functional area of operation.
ANS:
Accounting and Finance
A/F
Accounting and Finance (A/F)
A/F (Accouting and Finance)
PTS: 1
REF: 2
4. One example of the business function that happens in the human resource area of operation would be
____________________.
ANS:
Recruiting and hiring
Training
Payroll
Benefits
Government compliance
PTS: 1
REF: 2
5. A(n) ____________________ includes the computers, people, procedures, and software that store,
organize, and deliver information.
ANS:
information system
IS
information system (IS)
IS (information system)
PTS: 1
REF: 3
6. Information systems designed so that functional areas share data are called ____________________.
ANS:
integrated information systems
integrated IS
integrated information systems (IIS)
IIS
PTS: 1
REF: 4
7. A shortfall of raw materials is known as a(n) ____________________.
ANS: stockout
PTS: 1
REF: 11
8. To avoid stockouts, manufacturers might carry extra raw materials known as
____________________.
ANS: safety stock
PTS: 1
REF: 11
Chapter 2: The Development of Enterprise Resource Planning Systems
MULTIPLE CHOICE
1. Individual information systems for each functional area in a company are known as:
a.
silos
c.
tubers
b.
bagpipes
d.
separated systems
ANS: A
PTS: 1
REF: 20
2. The complex software and hardware required for ERP systems was not available until the
a.
1960s
c.
1980s
b.
1970s
d.
1990s
ANS: D
PTS: 1
REF: 21
3. The observation that the number of transistors built onto a computer chip doubles every 18 months is
known as:
a.
Moore’s Law
c.
Doubletake
b.
Gate’s Prophesy
d.
Acceleration
ANS: A
PTS: 1
REF: 21
4. When a piece of equipment’s capacity is exceeded, its capacity can be increased by adding new
hardware. This is commonly known as:
a.
adaptability
c.
scalability
b.
middleware
d.
computability
ANS: C
PTS: 1
REF: 22
5. In the 1980s, ____, the technology that holds data in an organized fashion, existed for ERP
development.
a.
spreadsheets
c.
client/server
architecture
b.
DBMS
d.
word-processors
ANS: B
PTS: 1
REF: 22
6. ____ software allows a plant manager to plan production and raw materials requirements by working
backward from the sales forecast.
a.
DBMS
c.
MRP
b.
ANS: C
EDI
PTS: 1
d.
EFT
REF: 23
7. The direct computer-to-computer exchange of standard business documents is known as:
a.
MRP
c.
EDI
b.
e-mail
d.
DDS
ANS: C
PTS: 1
REF: 23
8. In a process-oriented company, the flow of information and management activity is ______, in line
with the flow of materials and products.
a.
horizontal across functions
b.
vertical from top level management down
through the hierarchical management
structure
c.
vertical through functions
d.
horizontal from marketing and sales to
inventory and production
ANS: A
PTS: 1
REF: 24
9. Software ____ are individual programs that can be purchased, installed, and run separately, but extract
data from the common database.
a.
nodes
c.
modules
b.
chunks
d.
tidbits
ANS: C
PTS: 1
REF: 26
10. In ______, third-party software companies are encouraged to develop add-on software products that
can be integrated with existing software.
a.
open architecture
c.
integrated pieces
b.
clip-ons
d.
piecemeal nodes
ANS: A
PTS: 1
11. ____ is SAP’s biggest competitor.
a.
J.D. Edwards
b.
PeopleSoft
ANS: D
PTS: 1
REF: 27
c.
d.
REF: 28
12. Old information and computer systems are known as ______.
a.
dinosaurs
c.
b.
passe systems
d.
ANS: C
PTS: 1
Microsoft
Oracle
legacy systems
relics
REF: 27
13. Which ERP package is a popular software choice for managing human resources and financial
activities at universities?
a.
SAP
c.
Microsoft Dynamics
b.
PeopleSoft
d.
J.D. Edwards
ANS: B
PTS: 1
14. Which R/3 module records sales orders?
REF: 27-28
a.
b.
ANS: A
SD
MM
PTS: 1
c.
d.
PP
QM
REF: 29
15. Which of the following modules in SAP ERP maintains production information?
a.
SD
c.
PP
b.
MM
d.
QM
ANS: C
PTS: 1
REF: 29
16. The ______ module helps the company manage fixed-asset purchases (plant and machinery) and
related depreciation.
a.
Plant Maintenance
c.
Materials
Management
b.
Asset Management
d.
Product Planning
ANS: B
PTS: 1
REF: 30
17. Which of the following module in SAP is a set of tools that can automate the activities in SAP ERP?
a.
Workflow
c.
Financial Accounting
b.
Controlling
d.
Project System
ANS: A
PTS: 1
REF: 31
18. When top management is queried on the reasons for implementing ERP systems, the overriding
answer is ____.
a.
cost saving
c.
increased profitability
b.
control
d.
inventory
management
ANS: B
PTS: 1
REF: 31
19. Which R/3 module records transactions in the general ledger?
a.
CO
c.
b.
WF
d.
ANS: C
PTS: 1
FI
PS
REF: 31
20. After a company chooses the modules they want to implement, they must decide on ____ options,
which allow the customer to customize the modules to fit their business to some extent.
a.
settings
c.
flexible
b.
configuration
d.
tandem
ANS: B
PTS: 1
REF: 32
21. As part of the ______ process, a company can define any number of tolerance groups with a range of
limits, and can then assign employees to these tolerance groups.
Figure 2-6 A customization example: tolerance groups to set transaction limits
a.
b.
manufacturing
development
c.
d.
configuration
programming
ANS: C
PTS: 1
REF: 32
22. Which of the following is a benefit to running an ERP system?
a.
Global integration
b.
Elimination of updating and repairing
multiple systems
c.
Capability to manage operations, not just
monitor them
d.
All of the above are benefits
ANS: D
PTS: 1
REF: 36
23. An ERP system for a large company will cost ____, including software, training, and implementation.
a.
$100-500 million
c.
$1-5 billion
b.
$1-5 million
d.
$50,000-$500,000
ANS: A
PTS: 1
REF: 37
24. SAP’s internal programming language is called:
a.
R/3
c.
b.
C++
d.
ANS: D
PTS: 1
REF: 38
25. One assessment of a project’s value is calculated by the:
a.
DVT
c.
b.
PMT
d.
ANS: C
PTS: 1
PTS: 1
ROI
PPT
REF: 39
26. Bumpy rollouts of ERP systems are usually caused by:
a.
software problems
c.
b.
people problems
d.
ANS: B
Visual Basic
ABAP
hardware problems
configuration
problems
REF: 40
COMPLETION
1. ____________________ states that the number of transistors on a computer chip doubles every 24
months.
ANS: Moore’s Law
PTS: 1
REF: 21
2. A central-local computer arrangement is called ____________________ architecture.
ANS:
client server
client/server
client-server
PTS: 1
REF: 22
3. ____________________ means that the capacity of a piece of equipment can be increased by adding
new hardware.
ANS:
Scalable
Scalability
PTS: 1
REF: 22
4. The software that holds that data in an organized fashion, and that allows for the easy retrieval of data,
is the ____________________.
ANS:
database management system
DBMS
database management system (DBMS)
DBMS (database management system)
PTS: 1
REF: 22
5. ____________________ software allows a plant manager to plan production and raw materials
requirements by working backward from the sales forecast.
ANS:
MRP
material requirements planning
material requirements planning (MRP)
MRP (material requirements planning)
PTS: 1
REF: 23
6. The prediction of future sales is the ____________________.
ANS: sales forecast
PTS: 1
REF: 23
7. ____________________ is the direct computer-to-computer exchange of standard business
documents.
ANS:
Electronic data interchange
EDI
Electronic data interchange (EDI)
EDI (electronic data interchange)
PTS: 1
REF: 23
8. Originially, in English, SAP was an acronym for ____________________.
ANS: Systems Analysis and Program Development
PTS: 1
REF: 25
9. In ____________________, third-party software companies are encouraged to develop add-on
software products that can be integrated with existing software.
ANS: open architecture
PTS: 1
REF: 27
10. Old systems are known as ____________________.
ANS: legacy systems
PTS: 1
REF: 27
11. SAP’s biggest competitor is ____________________.
ANS: Oracle
PTS: 1
REF: 28
12. The ____________________ records sales orders and scheduled deliveries. Information about the
customer (pricing, address and shipping instructions, billing details, and so on) is maintained and
accessed from this module.
ANS:
Sales and Distribution
SD
Sales and Distribution (SD)
SD (Sales and Distribution)
PTS: 1
REF: 29
13. When data are entered into the system, data in all related files in the ____________________ are
automatically updated.
ANS: central database
PTS: 1
REF: 33
14. R/3’s design incorporates ____________________, which means that R/3 designers choose the best,
most efficient ways in which business processes should be handled.
ANS: best practices
PTS: 1
REF: 34
15. SAP’s internal programming language is ____________________.
ANS:
ABAP
Advanced Business Application Programming
Advanced Business Application Programming (ABAP)
ABAP (Advanced Business Application Programming)
PTS: 1
REF: 38
16. ____________________ help businesses customize the software to fit their unique needs.
ANS: configuration
PTS: 1
REF: 38
17. An assessment of an investment’s project value that is calculated by dividing the value of the project’s
benefits by the value of the project’s cost is known as a(n) ____________________.
ANS:
ROI
return on investment
return on investment (ROI)
ROI (return on investment)
PTS: 1
REF: 39
Chapter 3: Marketing Information Systems and the Sales Order Process
MULTIPLE CHOICE
1. In SAP ERP the electronic evidence of a transaction is called a(n) ____.
a.
trail
d.
b.
marker
e.
c.
tag
ANS: E
PTS: 1
audit number
document
REF: 56
2. A customer calls up to find out how much 1000 units of a product would cost. This is an example of
____ in the sales and distribution process.
a.
presales activities
d.
delivery and billing
b.
sales order processing e.
payment
c.
inventory sourcing
ANS: A
PTS: 1
REF: 56
3. A customer is granted a 10% price discount in a large order. This is an example of an activity in ____
in the sales and distribution process.
a.
presales activities
d.
delivery and billing
b.
sales order processing e.
payment
c.
inventory sourcing
ANS: B
PTS: 1
REF: 56
4. A customer's order is checked to see if it can be produced and delivered by the requested date. This is
an example of ____ in the sales and distribution process.
a.
presales activities
d.
delivery and billing
b.
sales order processing e.
payment
c.
inventory sourcing
ANS: C
PTS: 1
REF: 57
5. A customer's documents are released to the warehouse so that the goods can be gathered, packed and
boxed. This is an example of ____ in the sales and distribution process.
a.
presales activities
d.
delivery and billing
b.
c.
ANS: D
sales order processing e.
inventory sourcing
PTS: 1
payment
REF: 57
6. A customer's remittance causes Cash to be debited and Accounts Receivable to be credited. This is an
example of ____ in the sales and distribution process.
a.
presales activities
d.
delivery and billing
b.
sales order processing e.
payment
c.
inventory sourcing
ANS: E
PTS: 1
REF: 57
7. In SAP ERP, the history of a transaction (such as a sales order) can be researched by looking at its
____.
a.
trail mix
d.
material master data
b.
transaction index
e.
sales master data
c.
document flow
ANS: C
PTS: 1
REF: 63
8. What kind of software can give top management an overview of a company's complete relationship
with a customer?
a.
One to One Marketing Software
b.
Open Relationship Software
c.
Denouement Software
d.
Customer Relationship Management Software
e.
Supply Chain Management Software
ANS: D
PTS: 1
REF: 67
9. In the sales order process, there is a number used in the SAP ERP sales order that in a paper process
would be pre-printed on the sales document, usually in sequential number order. It’s assigned by the
customer to the sales order. What is this number?
a.
Customer ID
c.
Material Number
b.
Purchase Order
d.
Billing Code
Number
ANS: B
PTS: 1
REF: 58
10. Setting prices for customers can be very complex. SAP helps by offering a control mechanism, called
____, to determine how much to charge a given customer for a given product.
a.
pricing variance
c.
condition technique
b.
price fixing
d.
fluctuation
ANS: C
PTS: 1
REF: 64
11. The ____ system communicates with SAP ERP, BW, and APO systems in developing and executing
its plans.
a.
PPO
c.
CRM
b.
SSA
d.
GUp
ANS: C
PTS: 1
REF: 69
12. What software can automatically route customers who contact the company to a sales representative?
Companies can use this software to forecast customer needs.
a.
Marketing
c.
One-to-one
encyclopedias
marketing
b.
Sales campaign
d.
Sales force
management
automation
ANS: D
PTS: 1
REF: 67
13. The SAP ERP system allows users to define various ways to group customers and salespeople. These
groups are called ____.
a.
organizational
c.
document flows
structures
b.
master data
d.
audit trails
ANS: A
PTS: 1
REF: 61
14. In ____ CRM, the software and equipment reside with the CRM provider; it is not installed in-house.
a.
walk-up
c.
Internet
b.
on-demand
d.
ERP
ANS: B
PTS: 1
REF: 67
15. Which of the following are benefits to CRM?
a.
b.
c.
d.
ANS: D
PTS: 1
Lower costs
Higher revenue
Improved strategy and performance
measurement
All of the above
REF: 72
COMPLETION
1. The goal of ____________________ software is to provide a “single face to the customer.”
ANS:
customer relationship management
CRM
customer relationship management (CRM)
CRM (customer relationship management)
PTS: 1
REF: 67
2. With global____________________, the R/3 system automatically checks all facilities and
determines the most cost-efficient facility to use to meet the customer’s request in terms of ordering
and delivering goods.
ANS:
ATP
Available-To-Promise
available to promise
PTS: 1
REF: 71
Chapter 4: Production and Supply Chain Management Information
Systems
MULTIPLE CHOICE
1. A make-to-stock production system is where:
a.
b.
c.
d.
items are made for inventory in anticipation of
sales orders.
items are produced to fill specific customer
orders.
items are assembled for a specific customer
order from an inventory of components
both a and c
ANS: A
Make-to-stock items are made for inventory in anticipation of sales orders: most consumer products
are made this way.
PTS: 1
REF: 78
2. An unexpected increase in product demand can lead to:
a.
a depletion of finished goods inventories
b.
a depletion of raw materials inventories
c.
increased overtime and transportation
expenses
d.
all of the above
e.
both a and b
ANS: D
When Production must meet an unexpected increase in demand, several things happen. First,
warehouse inventories are depleted. To compensate, Production must schedule overtime labor, which
results in higher production costs for products. Second, because some materials (such as ingredients,
wrappers, and display boxes) are custom products purchased from a single vendor, a sudden increase
in sales demand can cause shortages or even a stockout of these materials.
PTS: 1
REF: 80
The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year. They are
expecting sales to increase by 3% this year. In addition, they are launching a promotional campaign
in May, which they expect will increase sales in June by an additional 500 cases.
3. What is the sales forecast for June of this year that Fitter Snacker should use?
a.
6,628
c.
6,935
b.
7,128
d.
7,143
ANS: B
6,435 x 1.03 + 500 = 7,128
PTS: 1
REF: 85
Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work week.
They can work 2 hours of overtime per weekday, plus 4 hours on Saturday. They are developing an
SOP for a month with 23 weekdays and 4 Saturdays.
4. What is the maximum number of cases that Fitter Snacker can produce in the month if they schedule
workers for overtime on weekdays only?
a.
7,666
c.
9,582
b.
9,199
d.
10,249
ANS: C
On weekday overtime, they can produce 1.25 times the normal output, or (1.25)(333.3) = 416.6. In 23
days, they can produce (416.6)(23) = 9,581.8 cases, which rounds to 9,582. Adding in Saturdays is
equivalent to two additional days of regular production, or (2)(333.3) = 666.6. The total time
available is 9,582 + 666 = 10,248.6, which rounds to 10,249.
PTS: 1
REF: 96
5. What is the maximum number of cases they can product in the month if they schedule workers for
overtime on weekdays and Saturdays?
a.
7,666
c.
9,582
b.
9,199
d.
10,249
ANS: D
On weekday overtime, they can produce 1.25 times the normal output, or (1.25)(333.3) = 416.6. In 23
days, they can produce (416.6)(23) = 9,581.8 cases, which rounds to 9,582. Adding in Saturdays is
equivalent to two additional days of regular production, or (2)(333.3) = 666.6. The total time
available is 9,582 + 666 = 10,248.6, which rounds to 10,249.
PTS: 1
REF: 96
6. The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January. If there are 22
days in the month, how many cases of snack bars should be produced in a 4-day week?
a.
188
c.
940
b.
752
d.
1034
ANS: B
To calculate the weekly quantity, we take (4,134 / 22) (4) = 751.63, which rounds to 752.
PTS: 1
REF: 96
Fitter Snacker orders oats in 44,000 lb. batches. Given the following (incomplete) MRP record:
Oats
Lead Time
= 2 weeks
Gross
Requireme
nts (lb)
Scheduled
Receipts
Planned
Receipts
On Hand
Week 1
18,000
Week 2
24,323
Week 3
24,872
Week 4
18,464
44,000
23,635
5,635
25,312
440
Week 5
17,938
Planned
Orders
7. What Planned Orders will the MRP logic create?
a.
b.
c.
d.
An order for 44,000 units in week 2
An order for 44,000 units in week 3
An order for 44,000 units for weeks 2 and 3
An order for 88,000 units for week 3
ANS: A
The completed MRP record is:
Oats
Lead Time
= 2 weeks
Gross
Requireme
nts (lb)
Scheduled
Receipts
Planned
Receipts
On Hand
Planned
Orders
PTS: 1
Week 1
Week 2
18,000
24,323
Week 3
24,872
Week 4
18,464
Week 5
17,938
44,000
44,000
23,635
5,635
25,312
44,000
440
25,976
8,038
REF: 99
8. What will the On Hand inventory be in week 5 after the system calculated planned orders?
a.
0
c.
8,038
b.
440
d.
14,038
ANS: C
The completed MRP record is:
Oats
Lead Time
= 2 weeks
Gross
Requireme
nts (lb)
Scheduled
Receipts
Planned
Receipts
On Hand
Planned
Orders
PTS: 1
Week 1
Week 2
18,000
24,323
Week 3
24,872
Week 4
18,464
Week 5
17,938
44,000
44,000
23,635
5,635
REF: 99
9. Immediately after MRP is run in SAP ERP:
25,312
44,000
440
25,976
8,038
a.
the stock/requirements list and MRP list are
both updated and show the same information.
the MRP list is updated but the
stock/requirements list is unaffected.
the stock/requirements list is updated but the
MRP list is unaffected.
none of the above.
b.
c.
d.
ANS: A
The MRP list shows the results of the MRP calculations, while the Stock/Requirements List shows
those results plus any changes that have occurred since the MRP list was generated (planned orders
converted to purchase orders or production orders, material receipts, and so on).
PTS: 1
REF: 101
10. In detailed scheduling, longer production runs of a particular product:
a.
increases the available capacity by reducing
the frequency of setups.
b.
increases finished goods inventory levels.
c.
reduces finished goods inventory levels.
d.
both a and b
e.
both a and c
ANS: D
Longer production runs mean that fewer machine setups are required, reducing production costs and
increasing the effective capacity of the equipment. On the other hand, shorter production runs can be
used to lower the inventory levels for finished products.
PTS: 1
REF: 105
11. The order of the steps in the SAP R/3 production planning process are:
a.
Sales Forecasting, Demand Management,
Purchasing, Sales and Operations Planning,
MRP, Detailed scheduling, Production
b.
Sales Forecasting, Demand Planning, Detailed
scheduling, Purchasing, Demand
Management, MRP, Production
c.
Sales and Operations Planning, Sales
Forecasting, MRP, Purchasing, Demand
Management, Detailed scheduling, Production
d.
Sales Forecasting, Sales and Operations
Planning, Demand Management, MRP,
Purchasing, Detailed scheduling, Production
ANS: D
The order is Sales Forecasting, Sales and Operations Planning, Demand Management, MRP
Purchasing, Detailed scheduling, Production.
PTS: 1
REF: 83
12. The production plan for Fitter Snacker calls for 7000 cases of the snack bar product group in June. If
the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A
bars and 30% NRG-B bars, how many NRG-A bars should be produced in June?
a.
500
c.
4900
b.
2100
d.
7000
ANS: C
7000 * .7 = 4900 NRG-A
7000 * .3 = 2100 NRG-B
PTS: 1
REF: 85
13. The costs normally required to manufacture a product, which are calculated from historical costs and
any changes from that, are known as ____.
a.
standard costs
c.
known costs
b.
abbreviated costs
d.
estimated costs
ANS: A
Standard costs are the normal costs of manufacturing a product; standard costs are calculated from
historical data, factoring in any changes in manufacturing that have occurred since the collection of
the historical data.
PTS: 1
REF: 81
14. ____ are disaggregated to generate detailed production schedules.
a.
Bills of materials
c.
b.
Production runs
d.
ANS: D
PTS: 1
Internet sales orders
Rough-cut plans
REF: 88
15. What is the production plan for all finished goods?
a.
MPS - master
c.
production schedule
b.
QQR - quality query
d.
run
PPR - production
planning run
RUN - run
ANS: A
The output of the demand management process is the master production schedule (MPS), which is the
production plan for all finished goods.
PTS: 1
REF: 95
16. What process answers the question “What do we need to order to produce the product, and when do
we need to order these raw materials?”
a.
SF - sales forecasting c.
MRP - materials
requirements
planning
b.
SOP - sales and
d.
DS - detailed
operations planning
scheduling
ANS: C
The raw materials requirements planning process answers the questions, “What quantities of raw
materials should we order so that we can meet that level of production?” and “When should these
materials be ordered?”
PTS: 1
REF: 97
17. What metric tracks the number of times a supplier meets the agreed upon delivery date?
a.
initial fill rate
c.
on-time performance
b.
ANS: C
initial order lead time
PTS: 1
d.
cash-to-cash cycle
time
REF: 112
Figure 4-2 The SAP ERP production planning process
18. In the accompanying figure, which shows the SAP ERP production planning process, what is A?
a.
MRP
c.
Starting Inventory
b.
Sales Forecasting
d.
Detailed Scheduling
ANS: B
PTS: 1
REF: 83
19. In the accompanying figure, which shows the SAP ERP production planning process, what is B?
a.
Starting Inventory
c.
Sales Forecasting
b.
Detailed Scheduling
d.
MRP
ANS: A
PTS: 1
REF: 83
20. In the accompanying figure, which shows the SAP ERP production planning process, what is C?
a.
Starting Inventory
c.
MRP
b.
Sales Forecasting
d.
Detailed Scheduling
ANS: D
PTS: 1
REF: 83
21. In the accompanying figure, which shows the SAP ERP production planning process, what is D?
a.
Starting Inventory
c.
Sales Forecasting
b.
Detailed Scheduling
d.
MRP
ANS: D
PTS: 1
REF: 83
22. What stage of the production planning process splits Fitter Snacker’s monthly production planning
values into finer time periods?
a.
Sales Forecasting
c.
MRP
b.
BOM
d.
Demand
Management
ANS: D
In the Demand Management step, the production plan is broken down into smaller time units, such as
weekly or even daily production figures, to meet demand for individual products.
PTS: 1
REF: 84
COMPLETION
1. The ____________________, shown in the accompanying figure for Fitter Snacker, is a list of the
materials needed to make NRG-A and NRG-B bars.
ANS:
Bill of Materials
BOM
Bill of Materials (BOM)
BOM (Bill of Materials
PTS: 1
REF: 97-98
2. ____________________ refers to the process of determining production quantities (for raw materials
produced in-house) and order quantities (for purchased items).
ANS: Lot sizing
PTS: 1
REF: 98