mgt 351 final

Which one of the following best describes a work center?

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

6. Which of the following are true regarding product routings? (3 answers)

- A routing identifies the operations needed to make the product - A routing identifies the sequence of operations needed to make the product - A routing identifies the times needed to make a product

In the production process, a goods issue reflects

- Issuing raw materials or semifinished goods to a production order.

Which of the following are valid options for moving materials, regardless of their organization level, in stock transfers? (2 answers, partial credit available )

-2 step procedure -stock transport order

Which of the following are true regarding A BOM? (3 answers)

-A BOM identifies components needed to make the material - A BOM component can have its own BOM - A BOM is plant specific

Which of the following statement about Goods Movements are correct?

-A Goods Issue decreases the warehouse stock

A production order typically includes references to which of the following? (3 Correct answers)

-BOM -Routing -work centers -PRT

A BOM consists of a header and items. A BOM header includes which of the following information? (5 answers)

-BOM status(active/inactive -validity date -usage -material number -base quanity

Which of the following are the consequences of a goods issue against a production order? (4 answers)

-FI document is created -CO document is created -Material reservations are updated (reduced) -Inventory is updated

Which of the following processes does NOT contribute to the supply of materials in material plannng?

-Fulfillment process

A planned order is a request that indicates

-How many units of a product are needed -What materials are needed -When the materials are needed

In the integrated process in which of the following processes is a STO created?

-IWM

Which of the following are true regarding MRP? (3 answers)

-MRP can result in planned orders. -MRP can be executed for single level or for multiple levels of the BOM. -MRP can result in purchase orders.

Which of the following are advantages of using a stock transport order? (3 answers)

-Requisitions can be converted to STOs -History can be tracked - similar to PO history -Goods can be received into different stock statuses - quality inspection, blocked (procurement process

Which of the following are inputs into the SOP step? (2 answers)

-Sales History -profitability analysis

Which of the following are examples of stock transfers? (2 answers)

-Storage location to storage location movement -Plant to Plant movement

Which of the following are examples of limitations of using a stock transfer to move materials from one plant to another? (3 answers, partial credit available).

-The company cannot track the progress of the transfer. -Valuation is based on the book value of the materials, not on the negotiated price between plants. -The costs of transporting the materials are not taken into account

Which of the following statements about the integrated process are TRUE? (3 correct answers)

-The process is triggered by a customer order. -The production process is suspended when the needed raw materials are not available. - The fulfillment process continues when the finished products become available.

Which of the following are examples of unplanned goods issue? (3 answers, partial credit available )

-Using materials for internal consumption -Issuing materials to sampling -Issuing a material to scrap -Using materials for internal consumption

Master data relevant to the production process are (3 Correct answers)

-Work centers -Material master -Bills of material

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

-a goods receipt is automatically recorded

Which of the following are master data in production process? 3 answers

-bill of material -work center -routings

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

-bill of materials

Which of the following are master data relevant to material planning? (4 answers)

-bill of materials -product groups material master -bill of materials

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

-billing

Which of the following are organizational data in production process? 4 answers

-client -company code -plant -storage location

When the finished goods have been produced the SAP ERP system allows a user to record which of the following?

-confirmation

Which of the following production control technique uses histoical consumption data to calculate requirements?

-consumption based planning

In the integrated process, which of the steps listed below are part of the procurement process? (2 correct answers)

-create requisition -send payment

Which of the following are warehouse management steps related to the procurement process (2 answers, partial credit available)

-create transfer order -create transfer requirement

In the integrated process, which of the steps listed below are part of the fulfillment process.(2 correct answers)

-customer billing -sales order processing

T/F. A BOM always identifies the components needed to make one unit of the finished product

-false

T/F. A BOM is used only in the materials planning process

-false

T/F. A bill of materials identifies the finished goods that are to be shipped to a specific customer.

-false

T/F. A goods movement from one stock type (status) to another generates an accounting document

-false

T/F. A make to stock production process is driven by a customer order

-false

T/F. A work center is a location where materials are placed immediately before they are shipped.

-false

T/F. An accounting document is created for every goods movement

-false

T/F. In the integrated process a STO needs to be created to move the trading goods from Dallas to Miami for distribution.

-false

T/F. In the integrated process, once they are produced, the touring wheel assemblies will be received into the raw materials storage location.

-false

T/F. In the integrated process, the Sales Order needs to be created in reference to a Quotation.

-false

T/F. Interoperation time is used to prevent ERP systems from automatically changing procurement proposals during a specific period of time.

-false

T/F. MPS creates planned orders for the MPS items and dependent requirements for all items in its BOM.

-false

T/F. Make to order and make to stock are the only two planning strategies.

-false

T/F. Material movements consist of two tasks: issue and receipt. In two-step procedure, both tasks are accomplished in a single step.

-false

T/F. The demand or requirement for a material is based on the requirement for another material. This is an example of independent demand.

-fasle

Which of the following are examples of goods movements? (2 answers, partial credit available)

-goods issue -stock transfer

Which of the following goods movements always involve a physical movement of materials? 3 answers

-goods receipt -goods issue -stock transfer

The four common stock statuses (based on usability) include the following except:

-in storage

A stock transport order can involve steps from which of the following processes? (3 answers, partial credit available)

-inventory management -fulfillment -procurement

Which of the following parameters is used to determine the quantity of materials in procurement proposals?

-lot size key

Which of the following are key master data elements in warehouse management? (2 answers, partial credit available)

-material master -storage bins

A BOM is used in which of the following processes? (3 answers)

-materials planning -production -product costing

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

-need to increase inventory

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

-plant level

Which of the following are inventory management steps related to the fulfillment process? (2 answers, partial credit available)

-post goods issue -outbound delivery

Which of the following processes does NOT create a demand for materials in material planning?

-procurement process

Which of the following parameters determines if the material is procured internally (in-house) or externally?

-procurement type

Which of the following is NOT a procurement proposal generated by material planning?

-purchase order

Which of the following times are used in routing in calculating the time needed to produce a material? (3 answers)

-setup time -labor time -machine time

The key organizational level associated with inventory management is

-storage location

Which of the following are key organizational data relevant to the production process? (2 Correct answers)

-storage location -plant

Which of the following are key organizational elements in materials planning? (3 answers)

-storage location -plant -company code

T/F. A goods issue can occur without reference to a sales order or a production order. Some common cases in which such a goods movement occurs are issuing materials to scrap, sampling, and using the materials for internal consumption.

-true

T/F. A goods issue, unlike a goods receipt, results in a decrease in inventory.

-true

T/F. A goods movement from one stock type (status) to another generates a material document

-true

T/F. A goods receipt is a movement of materials into inventory; it therefore results in an increase in inventory.

-true

T/F. A material document is created for every goods movement

-true

T/F. A stock transport order is a purchase order used to move goods between plants

-true

T/F. A work center is associated with a cost center

-true

T/F. Because inventory management is concerned with material movements, the plant/data storage view of the material master is the most relevant master data in IM.

-true

T/F. Companies generally place products with similar planning characteristics, such as similar types or similar manufacturing processes, into a product group or a product family because sometimes planning separately for each material is neither necessary nor efficient.

-true

T/F. Companies utilize the two-step movement when there is a time lag between the two steps, for example, when the locations are geographically separated by distance.

-true

T/F. Component assignment is a technique that assigns components in a BOM either to a routing or to a specific operation within the routing.

-true

T/F. Disaggregation is triggered when a new production plan is created.

-true

T/F. IM focuses on goods movement at the storage location organizational level.

-true

T/F. In a routing, if components are not assigned to specific operations, then they are assumed to be assigned to the first operation

-true

T/F. In procurement and production processes goods receipt are generated against a purchase order and a production order, respectively. It is not uncommon, however, to record a goods receipt without reference to an order.

-true

T/F. In the integrated process, if the necessary materials are not available to fulfill the customer's order, we first need to find out whether the materials are manufactured internally or procured externally from vendors.

-true

T/F. In warehouse management process, the key organizational data is the warehouse.

-true

T/F. Many companies do not explicitly track the issue of materials to each production order. Instead, they employ backflushing, a technique that automatically records the goods issue when the order is confirmed.

-true

T/F. Materials requirements planning (MRP) calculates requirements for materials for all levels in a bill of materials.

-true

T/F. Most commonly applied method to determine whether a quantity of material will be available on a specific date is called available-to-promise (ATP).

-true

T/F. One of the most important reports in production is the stock /requirement list, which identifies all of the activities in the system that can potentially impact the quantity of material in inventory.

-true

T/F. PRTs include movable objects required for production

-true

T/F. Production specific reporting options include Stock/requirement lists

-true

T/F. Storage types are used to divide the space in a warehouse based on the characteristics of the space, materials, or activity

-true

T/F. The key organizational level associated with inventory management is the storage location.

-true

T/F. The outcome of material planning is one or more procurement proposals.

-true

T/F. There is a relationship between a BOM and a routing. This relationship is defined via the component assignment, a technique that assigns components in a BOM either to a routing or to a specific operation within the routing.

-true

T/F. When the finished goods have been produced, the person completing the work records a confirmation of the work completed in the SAP ERP system to indicate how much work was completed, where it was completed (work center), and who completed it.

-true

T/f. A proportion factor is a measure of how much a material influences the product group.

-true

The four goods movements types include the following

A. Goods receipt B. Goods issue C. Stock transfer D. Transfer posting Not -storage bin

A warehouse is divided into smaller areas in a hierarchical manner including the following except:

storage umbrella