Integrated Business Processes With ERP Systems 1st Edition by Simha R.Magal – Test Bank A+

Description

Package Title: Test bank

Course Title: The Production Process

Question type: Multiple Answers

1. Which one of the following are key organizational data relevant to the production process?

1. 1. Company code
   2. Credit control area
   3. Client
   4. Storage location
   5. Plant

Answer: a, c, d, e

Difficulty: Moderate

Section Reference: Introduction

1. The master data relevant to the production process are

1. 1. Work centers
   2. Material master
   3. Bills of material
   4. Client
   5. Company code

Answer: a, b, c

Difficulty: Difficult

Section Reference: Master Data

1. Which of the following are statuses that can apply to a BOM?
   1. On
   2. Off
   3. Active
   4. Inactive
   5. Open

Answer: c, d

Difficulty: Difficult

Section Reference: Master Data – Bill of Material

1. What are the basic time elements in the production process?
   1. Setup time
   2. Alternate time
   3. Build time
   4. Teardown time
   5. Processing time

Answer: a, d, e

Difficulty: Moderate

Section Reference: Master Data – Product Routing

1. Which of the following can be included in processing time?
   1. Machine time
   2. Configuring work center
   3. Configuring equipment
   4. Labor time
   5. Setup time

Answer: a, d

Difficulty: Moderate

Section Reference: Master Data – Work Center

1. Which of the following are the general classifications of time elements in production?
   1. Floating
   2. Volatile
   3. Fixed
   4. Explosive
   5. Variable

Answer: c, e

Difficulty: Moderate

Section Reference: Master Data – Product Routing

1. The material master is grouped into different views or segments based on which factors?
   1. Processes that use the materials
   2. Material type
   3. Organizational level
   4. Material composition
   5. Material description

Answer: a, b, c

Difficulty: Hard

Section Reference: Master Data – Material Master

1. Examples of production resource tools are
   1. Raw materials
   2. Fixtures
   3. Engineering drawings
   4. Calibration instruments
   5. Warehouse building

Answer: b, c, d

Difficulty: Moderate

Section Reference: Master Data – Production Resource Tools

1. A planned order is a formal request that indicates
   1. How many units of a product are needed
   2. Where the finished goods are to be shipped
   3. What materials are needed
   4. Where the raw materials are stored
   5. When the materials are needed

Answer: a, c, e

Difficulty: Moderate

Section Reference: Process – Request Production

1. What are the organizational data that are included in a planned order?
   1. Client
   2. Company code
   3. Plant
   4. Storage location
   5. Bill of materials

Answer: a, b, c, d

Difficulty: Difficult

Section Reference: Process – Request Production

1. Which are the following are options when a production manager receives a planned order?
   1. Create an alternate planned order
   2. Reject the planned order
   3. Combine the planned order with other orders
   4. Authorize the production
   5. Return the order to purchasing

Answer: b, c. d

Difficulty: Difficult

Section Reference: Process – Request Production

1. A production order typically includes references to which of the following?
   1. BOM
   2. Routing
   3. Work centers
   4. Sales order
   5. PRT

Answer: a, b. c, e

Difficulty: Difficult

Section Reference: Process – Authorize Production

1. Which of the following are included in the header information of a production order?
   1. Status
   2. Work center
   3. Plant
   4. Validity
   5. Material number

Answer: a, c, d

Difficulty: Difficult

Section Reference: Process – Authorize Production

1. What data are included in a confirmation?
   1. Where the work was completed
   2. How much raw material was used
   3. Who the material is to be shipped to
   4. How much work was completed
   5. Who completed the work

Answer: a, d, e

Difficulty: Difficult

Section Reference: Process – Confirmations

1. Which user inputs are included in a goods receipt?
   1. Plant
   2. Material master
   3. Quantities
   4. Dates
   5. Production order number

Answer: c, d, e

Difficulty: Difficult

Section Reference: Process – Goods Receipt

1. SAP ERP systems can communicate with
   1. Shop floor control systems
   2. PDC systems
   3. Systems that automate tasks in work centers
   4. Storage facilities
   5. None of the above

Answer: a, b, c

Difficulty: Difficult

Section Reference: Process – Order Release

1. What does a stock requirement list contain?
   1. Material
   2. BOM
   3. Plant
   4. MRP type
   5. All of the above

Answer: a, c, d

Difficulty: Difficult

Section Reference: Reporting

Question type: Multiple Choice

1. Which one of the following is NOT a type of organizational data relevant to the production process?

1. 1. Company code
   2. Credit control area
   3. Client
   4. Storage location
   5. Plant

Answer: b

Difficulty: Difficult

Section Reference: Introduction

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

1. 1. Formula
   2. List of chemicals
   3. Bill of chemicals
   4. Equation
   5. Material list

Answer: a

Difficulty: Moderate

Section Reference: Master Data – Bill of Material

1. Which one of the following best describes a work center?
   1. A location where materials are placed right before they are shipped
   2. Another term used to describe an office building
   3. A location where value-added work needed to produce a material is carried out
   4. A shipping dock
   5. A storage shelf in a warehouse

Answer: c

Difficulty: Difficult

Section Reference: Master Data – Work Center

1. All of the following can serve as a work center except
   1. A group of machines
   2. A group of people responsible for completing operations
   3. A production line
   4. A work area
   5. A shipping dock

Answer: e

Difficulty: Moderate

Section Reference: Master Data – Work Center

1. What term describes two simultaneous series of operations needed to build components for a finished product?
   1. Parallel sequences
   2. Alternate sequences
   3. Same sequence
   4. Line sequence
   5. Production sequence

Answer: a

Difficulty: Moderate

Section Reference: Master Data – Product Routing

1. Which one of the following best defines material staging?
   1. Component materials are moved into storage
   2. Component materials are received from the vendor
   3. Component materials are moved from storage and prepared for use
   4. Defective returned goods are broken down into several components for refurbishment
   5. Finished materials are moved back into a storage area

Answer: c

Difficulty: Difficult

Section Reference: Master Data – Product Routing

1. What term identifies the list of materials needed to produce one or more units of a finished good?
   1. Routing
   2. Source materials
   3. Component listing
   4. Bill of components
   5. Bill of materials

Answer: e

Difficulty: Moderate

Section Reference: Master Data – Bill of Materials

1. At what level are material requirements planning (MRP) and work scheduling data defined?
   1. Client level
   2. Plant level
   3. Company code level
   4. Sales area level
   5. Production level

Answer: b

Difficulty: Moderate

Section Reference: Master Data – Material Master

1. Which of the following is not a step in the production process?
   1. Production authorization
   2. Goods issue
   3. Request production
   4. Billing
   5. Order release

Answer: d

Difficulty: Moderate

Section Reference: Process

1. If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?
   1. Need to increase inventory
   2. Customer order
   3. Request for quotation
   4. Customer inquiry
   5. Billing document

Answer: a

Difficulty: Moderate

Section Reference: Introduction

1. Which of the following does a routing identify on a production order?
   1. The materials or components to be used in production
   2. The location where operations are to be performed
   3. The capacity requirements of the production order
   4. The location of raw materials in the warehouse
   5. The operations needed to produce a material

Answer: e

Difficulty: Difficult

Section Reference: Process – Authorization Production

1. 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?
   1. Production note
   2. Confirmation
   3. Order complete
   4. Production record
   5. Production outcome

Answer: b

Difficulty: Difficult

Section Reference: Process – Confirmations

1. The creation of a production order results in several outcomes including all of the following except
   1. Scheduling
   2. Availability checks
   3. Purchase requisitions
   4. Preliminary costing
   5. Confirmation

Answer: e

Difficulty: Moderate

Section Reference: Process – Moderate

1. What operation in the routing is sometimes necessary to prepare materials for use in production?
   1. Backflushing
   2. Confirmation
   3. Material staging
   4. Recall
   5. Reservation

Answer: c

Difficulty: Difficult

Section Reference: Master Data – Product Routing

1. Which of the following is not an outcome of a goods issue to a production order?
   1. The material master is updated to reflect the reduction in the quantity and value of the materials issued
   2. Actual costs associated with material consumption are calculated
   3. Material reservations are updated
   4. A goods receipt is automatically recorded
   5. An FI document is created to record financial accounting data

Answer: d

Difficulty: Difficult

Section Reference: Process – Goods Issue

1. When the finished goods have been produced the SAP ERP system allows a user to record which of the following?
   1. Confirmation
   2. Goods issue
   3. Order release
   4. Goods receipt
   5. Authorize production

Answer: a

Difficulty: Easy

Section Reference: Process

1. Which of the following is an important report in the production process?
   1. Work list
   2. Stock requirement list
   3. Online list
   4. BOM
   5. None of the above

Answer: b

Difficulty: Easy

Section Reference: Reporting

Question type: True or False

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

Answer: False

Difficulty: Easy

Section Reference: Master Data – Bill of Material

1. An active bill of materials can be used in the production of a material, but an inactive BOM cannot.

Answer: True

Difficulty: Easy

Section Reference: Master Data – Bill of Material

1. A work center is a location where materials are placed immediately before they are shipped.

Answer: False

Difficulty: Easy

Section Reference: Master Data – Work Center

1. All operations must be performed in some type of sequence, and many operations can be completed in a variety of sequences.

Answer: True

Difficulty: Difficult

Section Reference: Master Data – Product Routing

1. Fixed time elements represent the time needed to produce one unit of material.

Answer: False

Difficulty: Moderate

Section Reference: Master Data – Product Routing

1. Variable time elements are independent of how many units of material are produced.

Answer: False

Difficulty: Moderate

Section Reference: Master Data – Product Routing

1. Material staging is the process in which component materials are moved from storage and prepared for use.

Answer: True

Difficulty: Moderate

Section Reference: Master Data – Product Routing

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

Answer: True

Difficulty: Difficult

Section Reference: Master Data – Product Routing

1. Production resource tools are movable resources that are shared among different work centers.

Answer: True

Difficulty: Moderate

Section Reference: Master Data – Product Resource Tools

1. Typically a production order does not include any references to the BOM, routing, or work centers.

Answer: False

Difficulty: Moderate

Section Reference: Authorize Production

1. Capacity split is a strategy that is used to determine how the production work is to be distributed among machines and/or people

Answer: True

Difficulty: Moderate

Section Reference: Process – Authorize Production

1. After production has been completed, a goods receipt against the production order is used to pick the goods and ship them to the customer

Answer: False

Difficulty: Difficult

Section Reference: Process – Goods Receipt

1. If the bill of materials and the routing data are changed after the production order has been created, the system must be manually instructed to reenter the data

Answer: True

Difficulty: Difficult

Section Reference: Process – Authorize Production

1. A time ticket is used to record the amount of time required to complete various operations

Answer: True

Difficulty: Easy

Section Reference: Process – Confirmations

1. Material staging is a technique that is used to automatically record the goods issue when an order is confirmed

Answer: False

Difficulty: Difficult

Section Reference: Master Data – Product Routing

1. Periodic processing is also known as period-end closing

Answer: True

Difficulty: Moderate

Section Reference: Process – Periodic Processing

1. Overhead allocation, work in process determination, and order settlement are all included in periodic processing

Answer: True

Difficulty: Moderate

Section Reference: Process – Periodic Processing

1. A technically complete status for a production order means that even though the main material is complete, other production processes may be needed to complete smaller components of the material

Answer: False

Difficulty: Moderate

Section Reference: Process – Authorize Production

Chapter 7

Package Title: Test bank

Course Title: Inventory and Warehouse Management Processes

Question type: Multiple-Answer

1. Which of the following are examples of goods movements?

1. Move posting
2. Stock transfer
3. Stock movement confirmation
4. Goods issue
5. Internal order

Answer: b, d

Difficulty: Easy

Section: Learning Objectives

1. Which of the following are examples of unplanned goods issue?

1. Issuing materials to scrap
2. Shipping goods to unplanned storage location
3. Unplanned returns from customers
4. Using materials for internal consumption
5. Issuing materials to sampling

Answer: a, d, e

Difficulty: Easy

Section: Goods Issue

1. Which of the following represent common stock statuses?

1. Temporary location
2. In transit
3. Blocked
4. Unconfirmed
5. Fast-moved item

Answer: b, c

Difficulty: Medium

Section: Transfer Postings

1. Which of the following occur when a goods receipt is posted for raw materials on a consignment basis?

1. The status of the materials is set to consignment stock.
2. The inventory account is impacted.
3. The quantity of materials in inventory is increased.
4. The quantity of materials in inventory is decreased.
5. The vendor’s account is impacted.

Answer: a, c

Difficulty: Difficult

Section: Transfer Postings

1. A stock transfer can involve movements

1. Between storage locations in different plants.
2. Between plants in different company codes.
3. Between different storage types within the same storage location.
4. Between plants in one company code.
5. Between storage locations within one plant.

Answer: a, b, d, e

Difficulty: Difficult

Section: Stock Transfers

1. Which of the following are valid techniques for moving materials?

1. Stock transport order
2. Stock internal request
3. Stock movement order
4. Two-step procedure
5. Three-step procedure

Answer: a, d

Difficulty: Medium

Section: Stock Transfers

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

1. Materials are wrongly delivered to one plant and need to be relocated to another plant
2. Materials are transferred from a temporary storage location in one plant to a permanent storage location in another plant
3. Materials are moved via a stock transfer between plants in different company codes
4. Materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant
5. 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

Difficulty: Difficult

Section: Storage location-to-storage location transfer

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

1. The company cannot track the progress of the transfer.
2. The costs of transporting the materials are not taken into account.
3. Valuation can be based only on the book value of the materials at the sending plant, not on the negotiated value.
4. Valuation can be based only on the negotiated value of the materials, not on the book value.
5. Valuation can be based only on the book value of the materials, not on the fair market value.

Answer: a, b, c

Difficulty: Medium

Section: Stock transport orders

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

1. Fulfillment
2. Production
3. Plant management
4. Procurement
5. Inventory management

Answer: a, d, e

Difficulty: Medium

Section: Stock transport orders

1. Which of the following statements apply to stock transport orders?

1. Goods can be received into quality inspection or blocked stock statuses.
2. Goods received can be posted to consumption accounts rather than material accounts.
3. Purchase requisitions can be converted to purchase orders.
4. No history is available to track the tasks associated with STOs.
5. An availability check can be executed to assess material availability in the supplying plant.

Answer: a,b, e

Difficulty: Difficult

Section: Stock transport orders with delivery and billing

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

1. A warehouse cannot be linked to storage locations across multiple plants.
2. A warehouse must be linked to at least one storage location.
3. Not all storage locations must be linked to a warehouse.
4. A storage location can be linked to one or many warehouses.
5. A warehouse can be linked to storage locations across multiple plants.

Answer: b, c, e

Difficulty: Medium

Section: Organizational data in warehouse management

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

1. Material master
2. Storage bins
3. Storage section
4. Warehouse
5. Storage area

Answer: a, b

Difficulty: Easy

Section: Master data in warehouse management

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

1. Company code
2. Storage type
3. Plant
4. Storage bin
5. Warehouse

Answer: a, c, e

Difficulty: Medium

Section: Material master

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

1. Storage location
2. Source of requirement
3. Warehouse number
4. Storage bin
5. Transfer date

Answer: a, c

Difficulty: Medium

Section: Plant warehouse movement -> Data

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

1. Invoice
2. Delivery document
3. Production order
4. Purchase order
5. Material document

Answer: b, c, e

Difficulty: Medium

Section: Tasks

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

1. Storage location
2. Destination storage bin
3. Client
4. Source storage bin
5. Material master

Answer: b, d

Difficulty: Medium

Section: Execute warehouse movement -> Data

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

1. The data are always applicable to one line item because a transfer order is created for each material individually.
2. The data are applicable to all line items.
3. The data can be either applicable to one or several line items, and this must be explicitly specified in the document.
4. The header data can include transfer order number, dates, and warehouse movement type.
5. The header data can include source storage type, material number, and bin.

Answer: b, d

Difficulty: Medium

Section: Execute warehouse movement -> Data

1. Examples of reference documents for a transfer order are

1. Transfer requirement.
2. Change request.
3. Storage location request.
4. Material document.
5. Delivery document

Answer: a, d, e

Difficulty: Medium

Section: Tasks

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

1. Create invoice
2. Post goods issue
3. Create outbound delivery
4. Create transfer order
5. Create transfer requirement

Answer: d, e

Difficulty: Medium

Section: Plant warehouse movement

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

1. Create invoice
2. Post goods issue
3. Create outbound delivery
4. Create transfer order
5. Confirm transfer order

Answer: b, c

Difficulty: Medium

Section: Plant warehouse movement

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

1. Create invoice
2. Goods issue
3. Create outbound delivery
4. Create transfer order
5. Create transfer requirement

Answer: d, e

Difficulty: Medium

Section: Warehouse management in production

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

1. Warehouse movements are involved.
2. This is an internal transfer, so no warehouse movements are involved.
3. There is always an FI impact involved.
4. A transfer requirement is created automatically.
5. A transfer requirement must be created manually.

Answer: a, e

Difficulty: Difficult

Section: Warehouse management in stock transfers

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

1. Stock transfer from a plant where the storage location is not warehouse managed to a plant where it is
2. Stock transfer from a storage bin in a non warehouse-managed storage location to a storage bin in another non warehouse-managed storage location
3. Stock transfer between two non warehouse-managed storage locations
4. Stock transfer from a plant where the storage location is warehouse managed to a plant where it is not
5. Stock transfer between two warehouse-managed storage locations

Answer: a, d, e

Difficulty: Difficult

Section: Warehouse management in stock transfers

1. The key links between inventory management and warehouse management are

1. Transfer orders.
2. Storage locations.
3. Transfer requirements.
4. Association of storage locations to a warehouse.
5. Storage sections.

Answer: c, d

Difficulty: Easy

Section: Chapter summary

Question type: Multiple- Choice

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

1. It results in a decrease in inventory.
2. It can occur during the procurement process.
3. It can result in the creation of material and financial accounting documents.
4. Materials are placed in an appropriate storage location with an appropriate status.
5. It can occur during the production process.

Answer: a

Difficulty: Medium

Section: Goods Receipt

1. The key organizational level associated with inventory management is

2. Company code.
3. Storage section.
4. Storage area.
5. Storage location.

Answer: e

Difficulty: Easy

Section: Inventory Management

1. When do unplanned receipts occur?

1. When an invoice has been canceled
2. When material is transferred to another location
3. When a reference document does not exist
4. When a stock transfer is created
5. When the capacity of a storage location is exceeded

Answer: c

Difficulty: Medium

Section: Goods Receipt

1. In the production process, a goods issue reflects

1. Moving raw materials or semifinished goods from a work center to storage bins.
2. Shipping finished goods or trading goods to a customer to fill a sales order.
3. Issuing finished goods to a production order.
4. Shipping finished goods to a customer against a goods issue request.
5. Issuing raw materials or semifinished goods to a production order.

Answer: e

Difficulty: Medium

Section: Goods Issue

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

1. Changing the material status from consignment to warehouse stock
2. Changing the material number of a material
3. Changing the material’s storage location
4. Changing the status of materials in stock
5. Changing the type of materials in stock

Answer: b

Difficulty: Easy

Section: Transfer Postings

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

1. Changing the material status from consignment to warehouse stock
2. Changing the material number of a material
3. Changing the material’s storage location
4. Changing the status of materials in stock
5. Changing the type of materials in stock

Answer: c

Difficulty: Easy

Section: Transfer Postings

1. What is a stock transfer used for?

1. To change the status or type of materials in stock
2. To show material movements when a material is received in the warehouse from the vendor’s location
3. To indicate that a material-to-material change has been posted
4. To physically move materials from a storage location to the client’s warehouse
5. To physically move materials within the enterprise from one organizational level or location to another

Answer: e

Difficulty: Easy

Section: Stock Transfers

1. 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?

1. One-step procedure
2. Two-step procedure
3. Three-step procedure
4. Stock transport order
5. None of the above

Answer: a

Difficulty: Difficult

Section: Stock Transfers

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

1. A stock transfer among several storage locations of two plants
2. A stock transfer between two storage locations of two plants
3. A stock transfer among several storage locations within the same plant
4. A stock transfer between two storage locations within the same plant
5. A stock transfer between or among at least two storage locations within one or more plants

Answer: d

Difficulty: Easy

Section: Storage location-to-storage location transfer

1. In plant-to-plant transfer, an FI document

1. Is created in both one-step and two-step movements.
2. Is created in two-step movements only.
3. Is created in one-step movements only.
4. Is not created.

Answer: a

Difficulty: Easy

Section: Plant-to-plant transfer

1. Which of the following represents the hierarchy of a warehouse?

1. Warehouse, storage section, storage type, storage bin
2. Warehouse, storage bin, storage section, storage type
3. Warehouse, storage type, storage section, storage bin
4. Warehouse, storage section, storage bin, storage type
5. Warehouse, storage type, storage bin, storage section

Answer: c

Difficulty: Medium

Section: Storage Type

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

1. Storage bins.
3. Storage sections.
4. Storage types.
5. None of the above

Answer: d

Difficulty: Medium

Section: Storage Type

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

1. Weight, width, and type
2. Dimensions and profitability.
3. Space, materials, and activity.
4. Price, space, and type.
5. Usage, price, and dimensions.

Answer: c

Difficulty: Medium

Section: Storage Type

1. Fast-moving, slow-moving, heavy, light, large, and small are examples of

1. Storage bins.
3. Storage sections.
4. Storage types.
5. None of the above.

Answer: c

Difficulty: Medium

Section: Storage Section

1. A picking area groups which of the following elements?

1. Shelves and pallets
2. Storage bins, based on similar picking strategies
3. Materials with similar transportation type
4. Materials with similar usage
5. Materials of the same material type

Answer: b

Difficulty: Medium

Section: Picking area

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

1. In the storage location stock view of the material master for that material.
2. In the basic data view of the material master for that material.
3. In the general plant data/storage view of the material master for that material.
4. In the warehouse management view of the material master for that material.
5. No data need to be added.

Answer: d

Difficulty: Medium

Section: Material master

1. Shelves, stacks, and aisles are examples of

1. Storage locations.
2. Coordinate systems for addresses.
3. Storage sections.
4. Storage identifiers.
5. Storage areas.

Answer: b

Difficulty: Easy

Section: Storage bins

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

1. Transfer list
2. Transfer request
3. Transfer plan
4. Transfer order
5. Transfer requirement

Answer: b

Difficulty: Medium

Section: Plan Warehouse movement

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

1. Posting change notice
2. Notice for change
3. Material change list
4. Status request list
5. Change request

Answer: a

Difficulty: Easy

Section: Tasks

1. 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?

1. The transfer order will have multiple line items for the material.
2. More than one transfer order needs to be created.
3. The material will be written in one line item.
4. An internal order request will be created to move the material into one source bin.
5. This scenario is impossible.

Answer: a

Difficulty: Difficult

Section: Execute warehouse movement -> Data

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

1. A destination is known.
2. The reference document is a transfer requirement
3. A warehouse movement type is specified.
4. A reference document exists.
5. Both the plant and the storage location are known.

Answer: d

Difficulty: Medium

Section: Tasks

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

1. Create a transfer request, physically move the materials, confirm the movement, retrieve the transfer request
2. Physically move the materials, confirm the movement, create a transfer request, retrieve the transfer request
3. Physically move the materials, generate a transfer order, confirm the movement, retrieve the transfer order
4. Generate a transfer order, retrieve the transfer order. confirm the movement, physically move the materials
5. Generate a transfer order, physically move the materials, retrieve the transfer order, confirm the movement

Answer: e

Difficulty: Difficult

Section: Confirm warehouse movement

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

1. Storage sections and storage areas
2. Warehouse bins and storage sections
3. Interim storage areas and warehouse bins
4. Storage locations and storage sections
5. Storage locations and storage areas

Answer: c

Difficulty: Medium

Section: Confirm warehouse movement

1. 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?

1. A goods receipt triggers WM process steps.
2. A simple goods receipt is recorded in IM.
3. A goods issue triggers WM process steps.
4. A simple goods issue is recorded in IM.
5. None of the above

Answer: b

Difficulty: Medium

Section: Warehouse management in stock transfers

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

1. Produces a drilldown report showing details of the materials.
2. Opens a screen that enables you to change which bin is shown on the report.
3. Produces information about the bin location.
4. Opens a screen where storage bin information can be configured.
5. Will not display any data.

Answer: a

Difficulty: Medium

Section: Reporting

1. Warehouse management is typically used

1. By organizations that have small quantities of materials.
2. By transportation companies.
3. By organizations that have either large quantities of materials or an expensive inventory.
4. By storage companies.
5. By organizations that demand better reporting for their inventory.

Answer: c

Difficulty: Easy

Section: Chapter summary

Question type: True or False

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

Answer: True

Difficulty: Easy

Section: Inventory Management

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

Answer: False

Difficulty: Medium

Section: Inventory Management

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

Answer: False

Difficulty: Easy

Section: Goods Receipt

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

Answer: False

Difficulty: Easy

Section: Goods Receipt

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

Answer: True

Difficulty: Easy

Section: Goods Issue

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

Answer: False

Difficulty: Easy

Section: Goods Issue

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

Answer: True

Difficulty: Easy

Section: Goods Issue

1. A transfer posting always involves an actual movement of materials.

Answer: False

Difficulty: Easy

Section: Transfer Postings

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

Answer: False

Difficulty: Easy

Section: Transfer Postings

1. 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

Difficulty: Medium

Section: Transfer Postings

1. A stock transfer involves physically moving materials.

Answer: True

Difficulty: Easy

Section: Stock Transfers

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

Answer: True

Difficulty: Medium

Section: Stock Transfers

Difficulty: Easy

Section: Stock Transfers

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

Answer: True

Difficulty: Easy

Section: Stock Transfers

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

Answer: False

Difficulty: Easy

Section: Stock Transfers

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

Answer: False

Difficulty: Medium

Section: Storage location-to-storage location transfer

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

Answer: False

Difficulty: Medium

Section: Storage location-to-storage location transfer

1. 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

Difficulty: Medium

Section: Storage location-to-storage location transfer

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

Answer: False

Difficulty: Difficult

Section: Plant-to-plant transfer

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

Answer: True

Difficulty: Easy

Section: Company code-to-company code transfer

1. Stock transport orders with delivery include the invoice verification step.

Answer: False

Difficulty: Easy

Section: Stock transport orders with delivery

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

Answer: True

Difficulty: Medium

Section: Stock transport orders with delivery and billing

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

Answer: True

Difficulty: Easy

Section: Stock transport orders with delivery and billing

1. A storage location can be linked to only one warehouse.

Answer: True

Difficulty: Easy

Section: Organizational data in warehouse management

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

Answer: False

Difficulty: Easy

Section: Storage type

1. Storage sections represent the physical links between IM and WM.

Answer: False

Difficulty: Medium

Section: Storage type

1. Shelf storage is an example of a storage type

Answer: True

Difficulty: Easy

Section: Storage type

1. Lightweight materials are designated as fast-moving materials.

Answer: False

Difficulty: Easy

Section: Storage section

1. A picking area groups materials with the same material type.

Answer: False

Difficulty: Easy

Section: Picking area

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

Answer: True

Difficulty: Easy

Section: Storage bins

1. Transfer requirements can be created manually as well as automatically.

Answer: True

Difficulty: Medium

Section: Tasks

1. Transfer orders are used to execute warehouse movements.

Answer: True

Difficulty: Easy

Section: Execute Warehouse Movement

1. Transfer orders can only be created automatically.

Answer: False

Difficulty: Easy

Section: Execute Warehouse Movement

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

Answer: True

Difficulty: Medium

Section: Execute warehouse movement -> Data

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

Answer: True

Difficulty: Easy

Section: Tasks

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

Answer: False

Difficulty: Easy

Section: Plant warehouse movement

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

Answer: True

Difficulty: Easy

Section: Warehouse management in production

1. 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

Difficulty: Easy

Section: Warehouse management in stock transfers