Chương 7:

Which of the following are examples of goods movements?

a. Move posting

b. Stock transfer

c. Stock movement confirmation

d. Goods issue

e. Internal order

Answer: b, d

Which of the following are examples of unplanned goods issue?

a. Issuing materials to scrap

b. Shipping goods to unplanned storage location

c. Unplanned returns from customers

d. Using materials for internal consumption

e. Issuing materials to sampling

Answer: a, d, e

Which of the following represent common stock statuses?

a. Temporary location

b. In transit

c. Blocked

d. Unconfirmed

e. Fast-moved item

Answer: b, c

Which of the following occur when a goods receipt is posted for raw materials on a consignment basis?
a. The status of the materials is set to consignment stock.

b. The inventory account is impacted.

c. The quantity of materials in inventory is increased.

d. The quantity of materials in inventory is decreased.

e. The vendor's account is impacted.

Answer: a, c

A stock transfer can involve movements

a. Between storage locations in different plants.

b. Between plants in different company codes.

c. Between different storage types within the same storage location.

d. Between plants in one company code.

e. Between storage locations within one plant.

Answer: a, b, d, e

Which of the following are valid techniques for moving materials?

a. Stock transport order

b. Stock internal request

c. Stock movement order

d. Two-step procedure

e. Three-step procedure

Answer: a, d

For which of the following scenarios can storage location-to-storage location transfer be applied?

a. Materials are wrongly delivered to one plant and need to be relocated to another plant
b. Materials are transferred from a temporary storage location in one plant to a permanent storage
location in another plant

c. Materials are moved via a stock transfer between plants in different company codes

d. Materials are initially stored in a temporary staging area and are subsequently moved to a permanent
location within the same plant

e. Materials received from a vendor are initially placed in a storage location for quality inspection to be
performed before being placed in permanent location

Answer: d, e

Which of the following are examples of limitations of using a stock transfer to move materials from one
plant to another?

a. The company cannot track the progress of the transfer.

b. The costs of transporting the materials are not taken into account.

c. Valuation can be based only on the book value of the materials at the sending plant, not on the
negotiated value.

d. Valuation can be based only on the negotiated value of the materials, not on the book value.

e. Valuation can be based only on the book value of the materials, not on the fair market value.

Answer: a, b, c

A stock transport order can involve steps from which of the following processes?

a. Fulfillment

b. Production

c. Plant management

d. Procurement

e. Inventory management

Answer: a, d, e

Which of the following statements apply to stock transport orders?

a. Goods can be received into quality inspection or blocked stock statuses.

b. Goods received can be posted to consumption accounts rather than material accounts.

c. Purchase requisitions can be converted to purchase orders.

d. No history is available to track the tasks associated with STOs.

e. An availability check can be executed to assess material availability in the supplying plant.

Answer: a,b, e

Which of the following are rules that apply when linking warehouses to storage locations?

a. A warehouse cannot be linked to storage locations across multiple plants.

b. A warehouse must be linked to at least one storage location.

c. Not all storage locations must be linked to a warehouse.

d. A storage location can be linked to one or many warehouses.

e. A warehouse can be linked to storage locations across multiple plants.

Answer: b, c, e

Which of the following are key master data elements in warehouse management?

a. Material master

b. Storage bins

c. Storage section

d. Warehouse

e. Storage area

Answer: a, b

Which of the following organizational levels are relevant to the warehouse management view of master
data?
a. Company code

b. Storage type

c. Plant

d. Storage bin

e. Warehouse

Answer: a, c, e

Which of the following organizational data are included in a transfer requirement.

a. Storage location

b. Source of requirement

c. Warehouse number

d. Storage bin

e. Transfer date

Answer: a, c

1. Which of the following typically are sources of a transfer requirement for warehouse movement?

a. Invoice

b. Delivery document

c. Production order

d. Purchase order

e. Material document

Answer: b, c, e

Which of the following transaction data are included in a transfer order?

a. Storage location

b. Destination storage bin

c. Client

d. Source storage bin

e. Material master

Answer: b, d

Which of the following statements are TRUE regarding the header in a transfer order?

a. The data are always applicable to one line item because a transfer order is created for each material
individually.

b. The data are applicable to all line items.

c. The data can be either applicable to one or several line items, and this must be explicitly specified in
the document.

d. The header data can include transfer order number, dates, and warehouse movement type.

e. The header data can include source storage type, material number, and bin.

Answer: b, d

Examples of reference documents for a transfer order are

a. Transfer requirement.

b. Change request.

c. Storage location request.

d. Material document.

e. Delivery document

Answer: a, d, e

Which of the following are warehouse management steps related to the procurement process?

a. Create invoice

b. Post goods issue

c. Create outbound delivery

d. Create transfer order

e. Create transfer requirement

Answer: d, e

Which of the following are inventory management steps related to the fulfillment process?

a. Create invoice

b. Post goods issue

c. Create outbound delivery

d. Create transfer order

e. Confirm transfer order

Answer: b, c

Which of the following are warehouse management steps related to the production process?

a. Create invoice

b. Goods issue

c. Create outbound delivery

d. Create transfer order

e. Create transfer requirement

Answer: d, e

In a stock transfer from one bin to another within the same warehouse, which of the following
statements apply?

a. Warehouse movements are involved.

b. This is an internal transfer, so no warehouse movements are involved.

c. There is always an FI impact involved.

d. A transfer requirement is created automatically.

e. A transfer requirement must be created manually.

Answer: a, e

Which of the following are scenarios under which stock transfers involving warehouse movements can
occur?

a. Stock transfer from a plant where the storage location is not warehouse managed to a plant where it
is

b. Stock transfer from a storage bin in a non warehouse-managed storage location to a storage bin in
another non warehouse-managed storage location

c. Stock transfer between two non warehouse-managed storage locations

d. Stock transfer from a plant where the storage location is warehouse managed to a plant where it is
not

e. Stock transfer between two warehouse-managed storage locations

Answer: a, d, e

The key links between inventory management and warehouse management are

a. Transfer orders.

b. Storage locations.

c. Transfer requirements.

d. Association of storage locations to a warehouse.

e. Storage sections.

Answer: c, d

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

a. It results in a decrease in inventory.

b. It can occur during the procurement process.

c. It can result in the creation of material and financial accounting documents.

d. Materials are placed in an appropriate storage location with an appropriate status.

e. It can occur during the production process.

Answer: a

The key organizational level associated with inventory management is

a. Plant.

b. Company code.

c. Storage section.

d. Storage area.

e. Storage location.

Answer: e

When do unplanned receipts occur?

a. When an invoice has been canceled

b. When material is transferred to another location

c. When a reference document does not exist

d. When a stock transfer is created

e. When the capacity of a storage location is exceeded

Answer: c

In the production process, a goods issue reflects

a. Moving raw materials or semifinished goods from a work center to storage bins.

b. Shipping finished goods or trading goods to a customer to fill a sales order.

c. Issuing finished goods to a production order.

d. Shipping finished goods to a customer against a goods issue request.

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

Answer: e

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

a. Changing the material status from consignment to warehouse stock

b. Changing the material number of a material

c. Changing the material's storage location

d. Changing the status of materials in stock

e. Changing the type of materials in stock

Answer: b

Which one of the following is NOT an example of using transfer postings?

a. Changing the material status from consignment to warehouse stock

b. Changing the material number of a material

c. Changing the material's storage location

d. Changing the status of materials in stock

e. Changing the type of materials in stock

Answer: c

What is a stock transfer used for?

a. To change the status or type of materials in stock

b. To show material movements when a material is received in the warehouse from the vendor's
location

c. To indicate that a material-to-material change has been posted

d. To physically move materials from a storage location to the client's warehouse

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

Answer: e

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?

a. One-step procedure

b. Two-step procedure

c. Three-step procedure

d. Stock transport order

e. None of the above

Answer: a

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

a. A stock transfer among several storage locations of two plants

b. A stock transfer between two storage locations of two plants

c. A stock transfer among several storage locations within the same plant

d. A stock transfer between two storage locations within the same plant

e. A stock transfer between or among at least two storage locations within one or more plants

Answer: d

In plant-to-plant transfer, an FI document

a. Is created in both one-step and two-step movements.

b. Is created in two-step movements only.

c. Is created in one-step movements only.

d. Is not created.
Answer: a

Which of the following represents the hierarchy of a warehouse?

a. Warehouse, storage section, storage type, storage bin

b. Warehouse, storage bin, storage section, storage type

c. Warehouse, storage type, storage section, storage bin

d. Warehouse, storage section, storage bin, storage type

e. Warehouse, storage type, storage bin, storage section

Answer: c

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

a. Storage bins.

b. Warehouses.

c. Storage sections.

d. Storage types.

e. None of the above

Answer: d

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

a. Weight, width, and type

b. Dimensions and profitability.

c. Space, materials, and activity.

d. Price, space, and type.

e. Usage, price, and dimensions.

Answer: c
Fast-moving, slow-moving, heavy, light, large, and small are examples of

a. Storage bins.

b. Warehouses.

c. Storage sections.

d. Storage types.

e. None of the above.

Answer: c

A picking area groups which of the following elements?

a. Shelves and pallets

b. Storage bins, based on similar picking strategies

c. Materials with similar transportation type

d. Materials with similar usage

e. Materials of the same material type

Answer: b

If a company stores a material in a storage location that is associated with a warehouse, then it must
include additional data

a. In the storage location stock view of the material master for that material.

b. In the basic data view of the material master for that material.

c. In the general plant data/storage view of the material master for that material.

d. In the warehouse management view of the material master for that material.

e. No data need to be added.

Answer: d

Shelves, stacks, and aisles are examples of

a. Storage locations.

b. Coordinate systems for addresses.

c. Storage sections.

d. Storage identifiers.

e. Storage areas.

Answer: b

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

a. Transfer list

b. Transfer request

c. Transfer plan

d. Transfer order

e. Transfer requirement

Answer: b

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

a. Posting change notice

b. Notice for change

c. Material change list

d. Status request list

e. Change request

Answer: a

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

b. More than one transfer order needs to be created.

c. The material will be written in one line item.

d. An internal order request will be created to move the material into one source bin.

e. This scenario is impossible.

Answer: a

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

a. A destination is known.

b. The reference document is a transfer requirement

c. A warehouse movement type is specified.

d. A reference document exists.

e. Both the plant and the storage location are known.

Answer: d

Which of the following represents a possible sequence of steps in the warehouse movement process?

a. Create a transfer request, physically move the materials, confirm the movement, retrieve the transfer
request

b. Physically move the materials, confirm the movement, create a transfer request, retrieve the transfer
request

c. Physically move the materials, generate a transfer order, confirm the movement, retrieve the transfer
order

d. Generate a transfer order, retrieve the transfer order. confirm the movement, physically move the
materials

e. Generate a transfer order, physically move the materials, retrieve the transfer order, confirm the
movement

Answer: e
In warehouse management steps associated with the procurement process, the warehouse inventory is
calculated as sum of the inventory in the following places:

a. Storage sections and storage areas

b. Warehouse bins and storage sections

c. Interim storage areas and warehouse bins

d. Storage locations and storage sections

e. Storage locations and storage areas

Answer: c

In a stock transfer from a plant where the storage location is warehouse managed to a plant where it is
not, which of the following activities occurs at the receiving plant?

a. A goods receipt triggers WM process steps.

b. A simple goods receipt is recorded in IM.

c. A goods issue triggers WM process steps.

d. A simple goods issue is recorded in IM.

e. None of the above

Answer: b

In a bin status report, double-clicking on a bin that contains materials

a. Produces a drilldown report showing details of the materials.

b. Opens a screen that enables you to change which bin is shown on the report.

c. Produces information about the bin location.

d. Opens a screen where storage bin information can be configured.

e. Will not display any data.

Answer: a
Warehouse management is typically used

a. By organizations that have small quantities of materials.

b. By transportation companies.

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

d. By storage companies.

e. By organizations that demand better reporting for their inventory.

Answer: c

A storage location is a key organizational level associated with inventory management.

Answer: True

The most relevant category of master data in inventory management is the plant.

Answer: False

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A goods receipt cannot be posted without reference to an order.

Answer: False

Planned receipts occur when a reference document, such as a purchase order or a production order,
does not exist.

Answer: False

A goods issue results in the creation of appropriate material, FI, and CO documents.

Answer: True
A goods issue, unlike a goods receipt, can be posted without reference to an order.

Answer: False

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

Answer: True

A transfer posting always involves an actual movement of materials.

Answer: False

To change a material number you need to create a change request.

Answer: False

In a consignment scenario, when raw materials are consumed in the production process, the status of
the materials is changed from warehouse stock to consignment.

Answer: False

A stock transfer involves physically moving materials.

Answer: True

One-step procedure, two-step procedure, and stock transport order are strategies for moving materials.

Answer: True

A material document is created during both the one-step and two-step procedures.

Answer: True

During the one-step procedure, two material documents are created.

Answer: False
Moving materials between two storage locations within the same plant or different plants is known as
storage location-to-storage location transfer.

Answer: False

One-step procedure is possible only when the materials are in unrestricted use at the supplying location.

Answer: False

When transferring materials between storage locations in the same plant, if quantities are valued in the
same way, then no FI document is created.

Answer: True

In plant-to-plant transfer in the two-step method, the FI document is created at the time of receipt.

Answer: False

A movement of materials between two plants in different company codes is called a company code-to-
company code transfer.

Answer: True

Stock transport orders with delivery include the invoice verification step.

Answer: False

In stock transport orders with delivery and billing, valuation is based on the purchase price in the STO.

Answer: True

Inventory management keeps track of the quantity of materials in storage location, but it cannot
determine their exact location.

Answer: True

A storage location can be linked to only one warehouse.

Answer: True
A storage type is a division of a storage section that is based on the characteristics of the space,
materials, or activity.

Answer: False

Storage sections represent the physical links between IM and WM.

Answer: False

Shelf storage is an example of a storage type

Answer: True

Lightweight materials are designated as fast-moving materials.

Answer: False

A picking area groups materials with the same material type.

Answer: False

Storage bins are the smallest unit of space in a warehouse.

Answer: True

Transfer requirements can be created manually as well as automatically.

Answer: True

Transfer orders are used to execute warehouse movements.

Answer: True

Transfer orders can only be created automatically.

Answer: False
Target quantities, destination storage type, bin, and quant are examples of line item data in a transfer
order.

Answer: True

Transfer orders in the execute warehouse management step can be created with or without a reference
document.

Answer: True

One of the steps of the inventory management process related to procurement is post goods issue.

Answer: False

Inventory management in the production process involves a goods issue and a goods receipt.

Answer: True

A stock transfer from a storage bin in one warehouse to a storage bin in another warehouse is a possible
scenario under which warehouse movements can occur.

Answer: False

Chương 8:

Material planning is concerned with answering which basic questions?

a. Which planning version should the company choose?

b. What materials are required?

c. What is the shortest time required for completing the planning?

d. When are the materials required?

e. How many materials are required?

Answer: b, d, e

Which of the following statements concerning maintaining inventory at high levels are TRUE?
a. The longer the materials remain in storage, the more money the company loses.

b. Maintaining high levels of inventory can lead to serious write-offs.

c. Maintaining high levels of inventory is a recommended material planning policy.

d. Maintaining high levels of inventory can incur insurance costs.

e. The company may lose money storing excessive inventory, but the customer's interest must be the
company's highest priority.

Answer: a, b, d

The proposals that material planning generates typically are in the form of

a. A planning proposal.

b. Planned orders.

c. A material order list.

d. Purchase requisitions.

e. Purchase list.

Answer: b, d

Which of the following statements concerning the material planning process are NOT TRUE?

a. It can involve the creation of an operations plan.

b. The demand management step creates requirements for individual materials.

c. The final procurement proposals trigger either the production or procurement process.

d. The requirements step specifies the way the materials will be transported.

e. MRP uses sales objectives to generate the final procurement proposals.

Answer: d, e

Which of the following are key organizational elements in materials planning?

a. Company code

b. Shipping point

c. Plant

d. Storage location

e. Sales area

Answer: a, c, d

Which of the following are master data relevant to material planning?

a. Storage location

b. Bills of material

c. Material master

d. Planning version

e. Production version

Answer: b, c

Wich of the following statements regarding the MRP views of the material master are TRUE?

a. There are four MRP data views.

b. The system uses the MRP 4 view to select the correct BOM.

c. There are three MRP data views.

d. The system uses the MRP 3 view to determine how to procure materials (make vs. buy).

e. The system uses the MRP 1 view to select the correct BOM.

Answer: a, b

Which of the following statements concerning the outcome of the material planning process are NOT
TRUE?
a. The outcome can be multiple procurement proposals.

b. The outcome is always a single procurement proposal.

c. The outcome triggers the sales and operations planning step.

d. The outcome triggers the forecasting planning step.

e. The outcome can trigger either the production or the procurement process.

Answer: b, c, d

Which of the following represent procurement types?

a. Consumption-based planning

b. External

c. Section 2

d. None

e. No planning

Answer: b, d

Which of the following are production control techniques as indicated by the MRP type in the material
master?

a. Consumption-based planning

b. External control

c. Internal control

d. Sales order-based planning

e. No planning

Answer: a, e

Which of the following represent reasons why a company should maintain a safety stock?
a. The ERP system can be configured to automatically prevent inventory from falling below the safety
stock levels.

b. To avoid stock-outs

c. Maintaining a safety stock of at least 20 pieces is mandatory in the ERP system.

d. Maintaining a safety stock will guarantee that supply meets demand.

e. To avoid lost sales

Answer: a, b, e

Which of the following statements about consumption-based planning are NOT TRUE?

a. It includes forecast-based planning as one of its categories.

b. It calculates the requirements for a material based on historical consumption data.

c. It is relatively more complicated compared with MRP.

d. It assumes that future consumption will follow the same patterns as past consumption.

e. It takes into account dependencies between different materials.

Answer: c, e

Which of the following statements about MRP and MPS are TRUE?

a. MPS calculates requirements for all the levels of the BOM.

b. MRP calculates requirements only for the first-level items in the BOM.

c. Both MRP and MPS calculate requirements based on historical data only.

d. MRP calculates requirements for all levels of the BOM.

e. MPS calculates requirements only for the first-level items in the BOM.

Answer: d, e

Which of the following are common time estimates utilized during the planning process?

a. Production planning time

b. GR processing time

c. Planned delivery time

d. Planned receiving time

e. In-house production time

Answer: b, c, e

Which of the following are elements of the in-house production time?

a. Interoperation

b. Planned delivery

c. Processing

d. GR

e. Setup

Answer: a, c, e

The lot size independent in-house production time is used in which of the following scenarios?

a. The lot size is fixed.

b. Processing time is constant.

c. Processing time is very short compared to the setup and interoperation times.

d. Processing time is long in comparison to the setup and interoperation times.

e. The quantity of material to be produced varies.

Answer: a, b, c

Multiple BOMs can be created for a single material in which of the following situations?

a. The same material is produced in different plants.

b. The material is produced in the same lot sizes.

c. The material is produced in different lot sizes.

d. A bike model is upgraded with a new tire.

e. The company applies a make-to-order production planning strategy to fulfill a customer order for a
material.

Answer: a, c, d

Which of the following statements regarding a BOM are TRUE?

a. A BOM identifies the components needed to make the material.

b. A BOM identifies the sequence of operations needed to make the materials.

c. A BOM component can have its own BOM.

d. A BOM identifies the material's routing strategy.

e. A BOM is plant specific.

Answer: a, c, e

Which of the following items represent demand elements of the availability check group?

a. Purchase requisitions

b. Production orders

c. Purchase orders

d. Safety stock

e. Material reservations

Answer: d, e

Identify the SAP ERP terms for net requirements planning and planning with final assembly.

a. Strategy 10

b. Strategy 20

c. Strategy 30

d. Strategy 40
e. Strategy 50

Answer: a, d

Which of the following statements about a product group are TRUE?

a. It is used to group products with similar planning characteristics.

b. Each member of a product group is assigned a group factor.

c. Materials can be members of more than one product group for different planning scenarios.

d. A material can belong to only one product group.

e. Each member of a product group is assigned a proportion factor.

Answer: a, c, e

Sales and operations planning involves the creation of a(n)

a. Financial document.

b. Material movement.

c. Sales forecast.

d. Operations plan.

e. Material document.

Answer: c, d

The MRP controller ________

a. Is a step in the planning process in which PIRs are transferred to demand management.

b. Uses variety of reports and makes adjustments to procurement proposals, as needed.

c. Transfers CIRs into PIRs. (Customer independent requirements , Planned independent requirements)

d. Is a planning tool that generates forecasts.

e. Monitors material availability.

Answer: b, e
The purpose of the materials requirements planning step is to

a. Calculate PIR.

b. Calculate CIR.

c. Calculate net requirements.

d. Generate procurement proposals (requisitions and planned orders).

e. Calculate reorder points.

Answer: c, d

Which of the following statements concerning MRP-based planning are TRUE?

a. Planning is based on historical data.( consumption-based planning)

b. Planning is based on exploding the BOM.

c. Dependent demand is derived from independent demand.

d. It is used for low-value materials. .( consumption-based planning)

e. Planning is based on calculating a reorder point. .( consumption-based planning)

Answer: b, c

Which of the following statements regarding MRP are TRUE?

a. Planning is executed for only the first level of the material's BOM. (MPS)

b. MRP can be executed for one plant only.

c. MRP can result in planned orders.

d. MRP can result in purchase orders.(purchase requisitions)

e. MRP can be executed for a single level or multiple levels of the BOM.

Answer: c, e

M
Which of the following statements about the MRP step in the material planning process are TRUE?

a. MRP can be executed for one plant.

b. Planning for specific storage location in not possible with MRP.

c. MRP can be executed for multiple plants.

d. MRP can be executed within MRP areas.

e. MRP can only be executed manually by the MRP controller.

Answer: a, c, d

Which of the following are steps in the MRP procedure?

a. Check planning file

b. Scheduling

c. Lot size calculation

d. Bins calculation

e. Storage location inspection

Answer: a, b, c

 Check planning file(which material must be planned)

 Calculate net requirements(whether there is a need to procure the material)
 Determine lot size(how much the materials to procure)
 Perform scheduling(whether the material can be acquired by the required date)
 Determine procurement proposals(determine the type of procurement proposal to generate)
 Determine dependent requirements(MRP generates dependent requirements for components
BOM

If materials are to be procured externally, then, in the determine procurement proposal step, MRP

a. Can create purchase requisitions.

b. Will always generate planned orders.

c. Will determine the quantity of material to procure.

d. Can create planned orders.

e. Can create schedule lines.

Answer: a, d, e

Identify which of the following are processing keys:

a. Schedule lines

b. Regenerative planning

c. Net change planning

d. Purchase requisition planning

e. Planning mode

Answer: b, c

Which of the following are tasks in SOP?

a. Monitoring exceptions

b. Creating a sales plan

c. Evaluating feasibility

d. Creating revised PIRs

e. Adjusting schedules

Answer: b, c

Which of the following are possible outcomes in MRP?

a. Operations plan

b. Purchase requisitions

c. Production plan

d. Planned orders

e. Dependent requirements
Answer: b, d, e

Which of the following statements about the MRP list are TRUE?

a. It displays static data.

b. It highlights changes to MRP elements.

c. It is the most important reporting tool.

d. The MRP controller is the only one authorized to generate it.

e. It displays MRP elements.

Answer: a, e

The main objective of material planning is

a. To minimize the expenses for storing excess inventory.

b. To balance the demand for materials with the supply.

c. To shorten the duration of the procurement cycle.

d. To eliminate excess inventory.

e. To prevent lost sales.

Answer: b

The money tied up in inventory best represents

a. An opportunity cost.

b. A liquid asset.

c. A strategic policy.

d. A high risk for loss.

e. A material planning strategy.

Answer: a
A purchase requisition is

a. A confirmation for purchasing materials.

b. Proof of delivery.

c. A document issued by a vendor.

d. A request to purchase materials.

e. A confirmation of an inbound delivery.

Answer: d

Requirements in the material planning process specify

a. The master data requirements.

b. How the material planning should be executed.

c. The work center capacity.

d. Requirements for the different modes of transportation.

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

Answer: e

The organizational data elements in material planning are:

a. Plant, production version, company code.

b. Planning version, company code, client.

c. Client, company code, production version.

d. Storage section, client, storage location.

e. Client, company code, plant, storage location.

Answer: e

The master data elements in material planning are:

a. Material masters, product types, storage location, vendors.

b. Product routings, bills of material, material masters, product groups.

c. Product types, product routings, material masters, product groups.

d. Product routings, product types, material masters, customers.

e. Material masters, storage location, product groups, product routings.

Answer: b

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?

a. MRP 1

b. MRP 2

c. MRP 3

d. MRP 4

e. None of the above

Answer: b

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

a. How a material is produced

b. Vendor's groups

c. All of the ways to procure a material the user will choose from when making a decision

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

e. How a vendor will be chosen in the procurement process

Answer: d

MRP type specifies

a. Whether the material is produced in house or is obtained externally.

b. How material quantities for planning will be calculated.

c. The production control technique used in planning.

d. The available time periods the ERP system can use for scheduling.

e. The strategy for BOM selection.

Answer: c

Replenishment lead time is

a. The time between placing an order and receiving the materials.

b. The amount of time the routing operations will last.

c. The length of time a working center usually operates (in hrs, in one day).

d. Another term for capacity.

e. A synonym for interoperation time.

Answer: a

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

a. Planning is based on historical data.

b. Planning is based on exploding the BOM.

c. Dependent demand is derived from independent demand.

d. It is used for high-value materials

e. Planning is based on MPS.

Answer: a

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

a. Materials-requirement planning, time-phased planning, reorder-point planning

b. Master production scheduling, MRP, forecast-based planning

c. MRP, forecast-based planning, master production scheduling

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

e. None of the above

Answer: d

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

a. Car

b. Brake

c. Engine

d. Printer

e. Pen

Answer: e

The MRP technique calculates the requirements for a material based on

a. Historical data.

b. Current data.

c. The material's dependence on other materials.

d. Material type.

e. Replenishment lead time.

Answer: c

Exploding the BOM refers to

a. Creating the BOM hierarchy showing all the levels of the BOM.

b. Calculating and planning requirements for materials at all levels of the BOM.
c. Executing the BOM for materials at the top level of the BOM.

d. Choosing the planning strategy for the BOM.

e. Generating multiple BOMs for materials in the same material group.

Answer: b

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

a. Planned independent requirements.

b. Customer-planned independent requirements.

c. Integrated independent requirements.

d. Forecast-independent requirements.

e. Customer-independent requirements.

Answer: a

The lot size key specifies the

a. Optimum lot size for a group of materials.

b. Recommended lot size for a material.

c. Procedure used to determine the capacity of a storage area.

d. Lot size groups per each material type.

e. Procedure that is used to determine the lot size.

Answer: e

The static lot-sizing procedure

a. Combines the requirements from multiple time periods into one lot.

b. Specifies a fixed quantity based on fixed lot size.

c. Specifies a quantity that is fixed for a specific, limited time period.

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

e. Combines quantities for multiple time periods into several lots.

Answer: d

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

a. In-house production time.

b. Goods issue processing time.

c. Planned delivery time.

d. Goods receipt processing time.

e. Planned shipping time.

Answer: a

Setup time is the time required to

a. Set up the operations used in a work center.

b. Move materials from one work center to another.

c. Process materials in production.

d. Set up the work centers used in production.

e. Move materials from one storage location to another.

Answer: d

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

a. CIRs and components that are already in stock.

b. PIRs, with regard to CIRs.

c. PIRs, without regard to CIRs.

d. CIRs, but components are not in stock.

e. PIRs, but the components are not in stock.

Answer: c

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: 50

Procurement proposal for PIRs: 50

a. CIRs: 50, PIRs: 0

b. CIRs: 50, PIRs: 50

c. CIRs: 0, PIRs: 0

d. CIRs: 0, PIRs: 50

e. CIRs: 100, PIRs: 100

Answer: a

The manner in which CIRs consume PIRs is determined by the

a. Consumption type.

b. Consumption mode.

c. Consumption strategy.

d. Planning strategy.

e. Planning type.

Answer: b

What does SOP stand for?

a. Sales and operations planning

b. Strategic operations planning

c. Sales operations planner

d. Systems operations products

e. Sales operations projects

Answer: a

What is SOP used for?

a. Creating an operational plan and material documents

b. Calculating the financial impact of the material movements

c. Generating and executing the operations plan

d. Tracking material movements

e. Forecasting and planning

Answer: e

After the SOP process has generated the production plan,

a. SOP executes the plan.

b. The plan is conveyed to MRP for execution.

c. The plan is transferred to demand management.

d. SOP uses the plan to generate execution plan.

e. The plan is saved as a production version.

Answer: c

The planning table is best defined as

a. An independent tool used for parallel execution of the SOP process.

b. An interface for transferring data into SOP.

c. An interface used to enter all the operational plans.

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

e. A brainstorming session for selecting the most appropriate plan.

Answer: d

Given the information below, calculate disaggregated quantities for touring bikes (TOUR) and off-road
bikes (ORBK).

Total production = 100

TOUR proportion factor = 35

ORBK proportion factor = 65

a. TOUR = 35, ORBK = 65

b. TOUR = 65, ORBK = 35

c. TOUR = 0, ORBK = 65

d. TOUR = 35, ORBK = 0

e. TOUR = 50, ORBK = 50

Answer: a

Master production scheduling is specialized form of

a. MRP.

b. Demand planning.

c. SOP.

d. Production planning.

e. Operations scheduling.
Answer: a

Given the following information, use the net requirement calculation to calculate the available stock.

MRP type is consumption-based planning.

Plant stock = 100

Receipts = 20

Issues = 10

Safety stock = 30

a. 120

b. 130

c. 80

d. 70

e. 110

Answer: a

Given the following information, use the net requirement calculation to calculate the available stock.

MRP type is MPS.

Plant stock = 100

Receipts = 20

Issues = 10

Safety stock = 30

a. 120

b. 130
c. 80

d. 70

e. 110

Answer: c

In the determine procurement proposal step, for materials with the procurement type of internal, MRP
will:

a. Generate purchase requisitions.

b. Provide three options.

c. Prompt the MRP controller to select the appropriate production version.

d. Transfer this step to MPS.

e. Always generate planned orders.

Answer: e

Which of the following is most likely to trigger the MRP process?

a. A periodic planning need

b. Changes to MRP elements

c. The need for an operations plan

d. Events affecting demand

e. Events affecting supply

Answer: b

The most important reporting tool in material planning is the

a. Planning result report.

b. MRP list.

c. Stock overview.
d. Stock/requirements list.

e. Strategies list.

Answer: d

The stock/requirements list displays

a. Changes in the planning situation since MRP was run.

b. MRP elements at an aggregation level.

c. All MRP elements for a material.

d. Required materials per production version.

e. All materials needed per MRP element.

Answer: c

Lack of overall planning may result in excess inventory and lost sales.

Answer: True

When a company transfers part of the materials in stock from one distribution center to another, this
scenario is known as stock-out.

Answer: False

Material planning is one of the most complex processes within an organization.

Answer: True

Planned orders are requests to produce materials.

Answer: True

MRP uses requirements to generate the final procurement proposals

Answer: True
Storage area is one of the organizational data elements in material planning.

Answer: False

Product routings is one of the master data elements in material planning.

Answer: True

Work scheduling data are defined at the client level.

Answer: False

MRP is defined at the plant level.

Answer: True

MRP data are specific to each plant.

Answer: True

In-house production is the most common procurement type for raw materials.

Answer: False

Semifinished goods are typically purchased from vendors

Answer: False

MRP type specifies the production control technique used in planning.

Answer: True

Consumption-based planning calculates the requirements for a material based on current consumption
data.

Answer: False
In time-phased planning, materials are ordered when the stock level reaches a predetermined level
known as the reorder point.

Answer: False

Consumption-based planning assumes that future consumption will follow the same patterns as current
consumption.

Answer: False

In a scenario when the need for brakes depends on the need to produce cars, consumption-based
planning will be an appropriate strategy to use.

Answer: False

Typically, semifinished goods and raw materials have dependent requirements.

Answer: True

The input to MRP is the independent requirement for the finished goods.

Answer: True

MPS is a mandatory step in the planning process and is usually followed by MRP.

Answer: False

Period lot-sizing procedures combine the requirements from multiple time periods, such as days or
weeks, into one lot.

Answer: True

For externally procured materials, the planned delivery time and the GR processing time are used to
determine procurement time.

Answer: True

Lot size dependent times remain the same regardless of the amount of the material being procured.
Answer: False

The BOM selection method in the material master identifies the criteria the system should use to select
the BOM.

Answer: True

A BOM is used only in the materials planning process.

Answer: False

Planning with final assembly takes into consideration current sales orders.

Answer: True

When using planning without final assembly, components are made to order, and the finished product is
made to stock.

Answer: False

The strategy group defines the strategy the system uses to determine whether a quantity of material
will be available on a specific day.

Answer: False

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

Answer: False

In make-to-stock strategy the production of the finished goods and any needed semifinished goods is
triggered by a sales order.

Answer: False

Consumption-based planning derives dependent demand based on independent requirements and

exploding the BOM.

Answer: False
A product group groups products with similar planning characteristics, such as similar types.

Answer: True

Whether SOP is required depends on the production planning strategy used for the material.

Answer: True

The MRP controller is a program in the SOP process that is responsible for creating procurement
proposals and monitoring material availability.

Answer: False

SOP can be either flexible or standard.

Answer: True

The operations plan is an outcome of SOP.

Answer: True

After planning the master schedule items, MRP creates dependent requirements for the components of
those items.

Answer: True

MPS is generally appropriate for high-value items only.

Answer: True

MPS creates planned orders for the MPS items and dependent requirements for all items in the BOM.

Answer: False

Net requirements calculation is one of the steps in MRP.

Answer: True
The lot size calculation step in MRP is used to determine whether there is a need to procure the
material.

Answer: False

The ERP system initially uses forward scheduling and employs backward scheduling only if forward
scheduling is unsuccessful.

Answer: False

A processing key is a control parameter that determines how the materials in the MRP list will be
organized.

Answer: False

The schedule lines control parameter applies to scheduling agreements.

Answer: True

The MRP list, unlike the stock/requirements list, highlights changes to MRP elements that have occurred
since MRP was executed.

Answer: False

The planning result report aggregates quantities for MRP elements to make it easier to view the overall
picture.

Answer: True