Q12: What is RFQ?

Answer: RFQ is a Request for quotation. It is an invitation that is sent to sellers

to submit quotes showing pricing and also terms and conditions. RFQ also has
details regarding the date of delivery, goods and services, quantity, and date of
submission.

Q13: How is the document type used in the SAP system?

Answer: The document type is used to indicate different procedures for a

transaction in the SAP system.

Q14: How can we use Purchase Info Record?

Answer: It is used to store information about the material and also about that
vendor who is supplying that material.

Q15: Name the different Procurement types that you can establish Purchase
requisition in SAP MM?

Answer: A purchase requisition is created for the following procurement types;

Stock transfer: Transfer of material within the organization.

Subcontracting: Sending raw material to the seller and getting back finished
material.

Standard: Getting back finished material from the seller.

External service: Availing services from third-party sellers like maintenance.

Consignment: Paying the seller regarding the procuring material that is available
on the company’s premises.

Q16: Name some features of SAP material management?

Answer:

Purchasing
Receiving
Non-production stores
Transportation
Production and material control
Material handling
Q17: What do you mean by material requirement planning (MRP)?

Answer: Material requirement planning or MRP is a module in SAP ERP (Enterprise

Resource Planning). It is a sort of planning tool to assist procurement and
production planners in establishing realistic and possible plans which help to
initiate procurement and production procedures swiftly.

Q18: What do you mean by consumption-based planning (CBP)?

Answer: Consumption-based planning or CBP is dependent upon past consumption

values. It is used to forecast to find out future requirements. These processes in
CBP do not rely on the master production schedule. It is activated either when the
stock level comes below a particular reorder point or when the forecast needs
calculating with past consumption values.