Package Title: Test bank
Course Title: The Production Process
Question type: Multiple Answers
- Which one of the following are key organizational data relevant to the production process?
- Company code
- Credit control area
- Client
- Storage location
- Plant
Answer: a, c, d, e
Difficulty: Moderate
Section Reference: Introduction
- The master data relevant to the production process are
- Work centers
- Material master
- Bills of material
- Client
- Company code
Answer: a, b, c
Difficulty: Difficult
Section Reference: Master Data
- Which of the following are statuses that can apply to a BOM?
- On
- Off
- Active
- Inactive
- Open
Answer: c, d
Difficulty: Difficult
Section Reference: Master Data – Bill of Material
- What are the basic time elements in the production process?
- Setup time
- Alternate time
- Build time
- Teardown time
- Processing time
Answer: a, d, e
Difficulty: Moderate
Section Reference: Master Data – Product Routing
- Which of the following can be included in processing time?
- Machine time
- Configuring work center
- Configuring equipment
- Labor time
- Setup time
Answer: a, d
Difficulty: Moderate
Section Reference: Master Data – Work Center
- Which of the following are the general classifications of time elements in production?
- Floating
- Volatile
- Fixed
- Explosive
- Variable
Answer: c, e
Difficulty: Moderate
Section Reference: Master Data – Product Routing
- The material master is grouped into different views or segments based on which factors?
- Processes that use the materials
- Material type
- Organizational level
- Material composition
- Material description
Answer: a, b, c
Difficulty: Hard
Section Reference: Master Data – Material Master
- Examples of production resource tools are
- Raw materials
- Fixtures
- Engineering drawings
- Calibration instruments
- Warehouse building
Answer: b, c, d
Difficulty: Moderate
Section Reference: Master Data – Production Resource Tools
- A planned order is a formal request that indicates
- How many units of a product are needed
- Where the finished goods are to be shipped
- What materials are needed
- Where the raw materials are stored
- When the materials are needed
Answer: a, c, e
Difficulty: Moderate
Section Reference: Process – Request Production
- What are the organizational data that are included in a planned order?
- Client
- Company code
- Plant
- Storage location
- Bill of materials
Answer: a, b, c, d
Difficulty: Difficult
Section Reference: Process – Request Production
- Which are the following are options when a production manager receives a planned order?
- Create an alternate planned order
- Reject the planned order
- Combine the planned order with other orders
- Authorize the production
- Return the order to purchasing
Answer: b, c. d
Difficulty: Difficult
Section Reference: Process – Request Production
- A production order typically includes references to which of the following?
- BOM
- Routing
- Work centers
- Sales order
- PRT
Answer: a, b. c, e
Difficulty: Difficult
Section Reference: Process – Authorize Production
- Which of the following are included in the header information of a production order?
- Status
- Work center
- Plant
- Validity
- Material number
Answer: a, c, d
Difficulty: Difficult
Section Reference: Process – Authorize Production
- What data are included in a confirmation?
- Where the work was completed
- How much raw material was used
- Who the material is to be shipped to
- How much work was completed
- Who completed the work
Answer: a, d, e
Difficulty: Difficult
Section Reference: Process – Confirmations
- Which user inputs are included in a goods receipt?
- Plant
- Material master
- Quantities
- Dates
- Production order number
Answer: c, d, e
Difficulty: Difficult
Section Reference: Process – Goods Receipt
- SAP ERP systems can communicate with
- Shop floor control systems
- PDC systems
- Systems that automate tasks in work centers
- Storage facilities
- None of the above
Answer: a, b, c
Difficulty: Difficult
Section Reference: Process – Order Release
- What does a stock requirement list contain?
- Material
- BOM
- Plant
- MRP type
- All of the above
Answer: a, c, d
Difficulty: Difficult
Section Reference: Reporting
Question type: Multiple Choice
- Which one of the following is NOT a type of organizational data relevant to the production process?
- Company code
- Credit control area
- Client
- Storage location
- Plant
Answer: b
Difficulty: Difficult
Section Reference: Introduction
- In process industries like chemicals and beverages, the bill of materials is also known as a(n)
- Formula
- List of chemicals
- Bill of chemicals
- Equation
- Material list
Answer: a
Difficulty: Moderate
Section Reference: Master Data – Bill of Material
- Which one of the following best describes a work center?
- A location where materials are placed right before they are shipped
- Another term used to describe an office building
- A location where value-added work needed to produce a material is carried out
- A shipping dock
- A storage shelf in a warehouse
Answer: c
Difficulty: Difficult
Section Reference: Master Data – Work Center
- All of the following can serve as a work center except
- A group of machines
- A group of people responsible for completing operations
- A production line
- A work area
- A shipping dock
Answer: e
Difficulty: Moderate
Section Reference: Master Data – Work Center
- What term describes two simultaneous series of operations needed to build components for a finished product?
- Parallel sequences
- Alternate sequences
- Same sequence
- Line sequence
- Production sequence
Answer: a
Difficulty: Moderate
Section Reference: Master Data – Product Routing
- Which one of the following best defines material staging?
- Component materials are moved into storage
- Component materials are received from the vendor
- Component materials are moved from storage and prepared for use
- Defective returned goods are broken down into several components for refurbishment
- Finished materials are moved back into a storage area
Answer: c
Difficulty: Difficult
Section Reference: Master Data – Product Routing
- What term identifies the list of materials needed to produce one or more units of a finished good?
- Routing
- Source materials
- Component listing
- Bill of components
- Bill of materials
Answer: e
Difficulty: Moderate
Section Reference: Master Data – Bill of Materials
- At what level are material requirements planning (MRP) and work scheduling data defined?
- Client level
- Plant level
- Company code level
- Sales area level
- Production level
Answer: b
Difficulty: Moderate
Section Reference: Master Data – Material Master
- Which of the following is not a step in the production process?
- Production authorization
- Goods issue
- Request production
- Billing
- Order release
Answer: d
Difficulty: Moderate
Section Reference: Process
- If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?
- Need to increase inventory
- Customer order
- Request for quotation
- Customer inquiry
- Billing document
Answer: a
Difficulty: Moderate
Section Reference: Introduction
- Which of the following does a routing identify on a production order?
- The materials or components to be used in production
- The location where operations are to be performed
- The capacity requirements of the production order
- The location of raw materials in the warehouse
- The operations needed to produce a material
Answer: e
Difficulty: Difficult
Section Reference: Process – Authorization Production
- 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?
- Production note
- Confirmation
- Order complete
- Production record
- Production outcome
Answer: b
Difficulty: Difficult
Section Reference: Process – Confirmations
- The creation of a production order results in several outcomes including all of the following except
- Scheduling
- Availability checks
- Purchase requisitions
- Preliminary costing
- Confirmation
Answer: e
Difficulty: Moderate
Section Reference: Process – Moderate
- What operation in the routing is sometimes necessary to prepare materials for use in production?
- Backflushing
- Confirmation
- Material staging
- Recall
- Reservation
Answer: c
Difficulty: Difficult
Section Reference: Master Data – Product Routing
- Which of the following is not an outcome of a goods issue to a production order?
- The material master is updated to reflect the reduction in the quantity and value of the materials issued
- Actual costs associated with material consumption are calculated
- Material reservations are updated
- A goods receipt is automatically recorded
- An FI document is created to record financial accounting data
Answer: d
Difficulty: Difficult
Section Reference: Process – Goods Issue
- When the finished goods have been produced the SAP ERP system allows a user to record which of the following?
- Confirmation
- Goods issue
- Order release
- Goods receipt
- Authorize production
Answer: a
Difficulty: Easy
Section Reference: Process
- Which of the following is an important report in the production process?
- Work list
- Stock requirement list
- Online list
- BOM
- None of the above
Answer: b
Difficulty: Easy
Section Reference: Reporting
Question type: True or False
- 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
- 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
- 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
- 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
- Fixed time elements represent the time needed to produce one unit of material.
Answer: False
Difficulty: Moderate
Section Reference: Master Data – Product Routing
- Variable time elements are independent of how many units of material are produced.
Answer: False
Difficulty: Moderate
Section Reference: Master Data – Product Routing
- 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
- 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
- Production resource tools are movable resources that are shared among different work centers.
Answer: True
Difficulty: Moderate
Section Reference: Master Data – Product Resource Tools
- Typically a production order does not include any references to the BOM, routing, or work centers.
Answer: False
Difficulty: Moderate
Section Reference: Authorize Production
- 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
- 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
- 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
- A time ticket is used to record the amount of time required to complete various operations
Answer: True
Difficulty: Easy
Section Reference: Process – Confirmations
- 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
- Periodic processing is also known as period-end closing
Answer: True
Difficulty: Moderate
Section Reference: Process – Periodic Processing
- Overhead allocation, work in process determination, and order settlement are all included in periodic processing
Answer: True
Difficulty: Moderate
Section Reference: Process – Periodic Processing
- 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
- Which of the following are examples of goods movements?
- Move posting
- Stock transfer
- Stock movement confirmation
- Goods issue
- Internal order
Answer: b, d
Difficulty: Easy
Section: Learning Objectives
- Which of the following are examples of unplanned goods issue?
- Issuing materials to scrap
- Shipping goods to unplanned storage location
- Unplanned returns from customers
- Using materials for internal consumption
- Issuing materials to sampling
Answer: a, d, e
Difficulty: Easy
Section: Goods Issue
- Which of the following represent common stock statuses?
- Temporary location
- In transit
- Blocked
- Unconfirmed
- Fast-moved item
Answer: b, c
Difficulty: Medium
Section: Transfer Postings
- Which of the following occur when a goods receipt is posted for raw materials on a consignment basis?
- The status of the materials is set to consignment stock.
- The inventory account is impacted.
- The quantity of materials in inventory is increased.
- The quantity of materials in inventory is decreased.
- The vendor’s account is impacted.
Answer: a, c
Difficulty: Difficult
Section: Transfer Postings
- A stock transfer can involve movements
- Between storage locations in different plants.
- Between plants in different company codes.
- Between different storage types within the same storage location.
- Between plants in one company code.
- Between storage locations within one plant.
Answer: a, b, d, e
Difficulty: Difficult
Section: Stock Transfers
- Which of the following are valid techniques for moving materials?
- Stock transport order
- Stock internal request
- Stock movement order
- Two-step procedure
- Three-step procedure
Answer: a, d
Difficulty: Medium
Section: Stock Transfers
- For which of the following scenarios can storage location-to-storage location transfer be applied?
- Materials are wrongly delivered to one plant and need to be relocated to another plant
- Materials are transferred from a temporary storage location in one plant to a permanent storage location in another plant
- Materials are moved via a stock transfer between plants in different company codes
- Materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant
- 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
- Which of the following are examples of limitations of using a stock transfer to move materials from one plant to another?
- The company cannot track the progress of the transfer.
- The costs of transporting the materials are not taken into account.
- Valuation can be based only on the book value of the materials at the sending plant, not on the negotiated value.
- Valuation can be based only on the negotiated value of the materials, not on the book value.
- 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
- A stock transport order can involve steps from which of the following processes?
- Fulfillment
- Production
- Plant management
- Procurement
- Inventory management
Answer: a, d, e
Difficulty: Medium
Section: Stock transport orders
- Which of the following statements apply to stock transport orders?
- Goods can be received into quality inspection or blocked stock statuses.
- Goods received can be posted to consumption accounts rather than material accounts.
- Purchase requisitions can be converted to purchase orders.
- No history is available to track the tasks associated with STOs.
- 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
- Which of the following are rules that apply when linking warehouses to storage locations?
- A warehouse cannot be linked to storage locations across multiple plants.
- A warehouse must be linked to at least one storage location.
- Not all storage locations must be linked to a warehouse.
- A storage location can be linked to one or many warehouses.
- A warehouse can be linked to storage locations across multiple plants.
Answer: b, c, e
Difficulty: Medium
Section: Organizational data in warehouse management
- Which of the following are key master data elements in warehouse management?
- Material master
- Storage bins
- Storage section
- Warehouse
- Storage area
Answer: a, b
Difficulty: Easy
Section: Master data in warehouse management
- Which of the following organizational levels are relevant to the warehouse management view of master data?
- Company code
- Storage type
- Plant
- Storage bin
- Warehouse
Answer: a, c, e
Difficulty: Medium
Section: Material master
- Which of the following organizational data are included in a transfer requirement.
- Storage location
- Source of requirement
- Warehouse number
- Storage bin
- Transfer date
Answer: a, c
Difficulty: Medium
Section: Plant warehouse movement -> Data
- Which of the following typically are sources of a transfer requirement for warehouse movement?
- Invoice
- Delivery document
- Production order
- Purchase order
- Material document
Answer: b, c, e
Difficulty: Medium
Section: Tasks
- Which of the following transaction data are included in a transfer order?
- Storage location
- Destination storage bin
- Client
- Source storage bin
- Material master
Answer: b, d
Difficulty: Medium
Section: Execute warehouse movement -> Data
- Which of the following statements are TRUE regarding the header in a transfer order?
- The data are always applicable to one line item because a transfer order is created for each material individually.
- The data are applicable to all line items.
- The data can be either applicable to one or several line items, and this must be explicitly specified in the document.
- The header data can include transfer order number, dates, and warehouse movement type.
- The header data can include source storage type, material number, and bin.
Answer: b, d
Difficulty: Medium
Section: Execute warehouse movement -> Data
- Examples of reference documents for a transfer order are
- Transfer requirement.
- Change request.
- Storage location request.
- Material document.
- Delivery document
Answer: a, d, e
Difficulty: Medium
Section: Tasks
- Which of the following are warehouse management steps related to the procurement process?
- Create invoice
- Post goods issue
- Create outbound delivery
- Create transfer order
- Create transfer requirement
Answer: d, e
Difficulty: Medium
Section: Plant warehouse movement
- Which of the following are inventory management steps related to the fulfillment process?
- Create invoice
- Post goods issue
- Create outbound delivery
- Create transfer order
- Confirm transfer order
Answer: b, c
Difficulty: Medium
Section: Plant warehouse movement
- Which of the following are warehouse management steps related to the production process?
- Create invoice
- Goods issue
- Create outbound delivery
- Create transfer order
- Create transfer requirement
Answer: d, e
Difficulty: Medium
Section: Warehouse management in production
- In a stock transfer from one bin to another within the same warehouse, which of the following statements apply?
- Warehouse movements are involved.
- This is an internal transfer, so no warehouse movements are involved.
- There is always an FI impact involved.
- A transfer requirement is created automatically.
- A transfer requirement must be created manually.
Answer: a, e
Difficulty: Difficult
Section: Warehouse management in stock transfers
- Which of the following are scenarios under which stock transfers involving warehouse movements can occur?
- Stock transfer from a plant where the storage location is not warehouse managed to a plant where it is
- Stock transfer from a storage bin in a non warehouse-managed storage location to a storage bin in another non warehouse-managed storage location
- Stock transfer between two non warehouse-managed storage locations
- Stock transfer from a plant where the storage location is warehouse managed to a plant where it is not
- Stock transfer between two warehouse-managed storage locations
Answer: a, d, e
Difficulty: Difficult
Section: Warehouse management in stock transfers
- The key links between inventory management and warehouse management are
- Transfer orders.
- Storage locations.
- Transfer requirements.
- Association of storage locations to a warehouse.
- Storage sections.
Answer: c, d
Difficulty: Easy
Section: Chapter summary
Question type: Multiple- Choice
- Which of the following statements about the goods receipt step are NOT true?
- It results in a decrease in inventory.
- It can occur during the procurement process.
- It can result in the creation of material and financial accounting documents.
- Materials are placed in an appropriate storage location with an appropriate status.
- It can occur during the production process.
Answer: a
Difficulty: Medium
Section: Goods Receipt
- The key organizational level associated with inventory management is
- Company code.
- Storage section.
- Storage area.
- Storage location.
Answer: e
Difficulty: Easy
Section: Inventory Management
- When do unplanned receipts occur?
- When an invoice has been canceled
- When material is transferred to another location
- When a reference document does not exist
- When a stock transfer is created
- When the capacity of a storage location is exceeded
Answer: c
Difficulty: Medium
Section: Goods Receipt
- In the production process, a goods issue reflects
- Moving raw materials or semifinished goods from a work center to storage bins.
- Shipping finished goods or trading goods to a customer to fill a sales order.
- Issuing finished goods to a production order.
- Shipping finished goods to a customer against a goods issue request.
- Issuing raw materials or semifinished goods to a production order.
Answer: e
Difficulty: Medium
Section: Goods Issue
- Which of the following scenarios requires material-to-material posting?
- Changing the material status from consignment to warehouse stock
- Changing the material number of a material
- Changing the material’s storage location
- Changing the status of materials in stock
- Changing the type of materials in stock
Answer: b
Difficulty: Easy
Section: Transfer Postings
- Which one of the following is NOT an example of using transfer postings?
- Changing the material status from consignment to warehouse stock
- Changing the material number of a material
- Changing the material’s storage location
- Changing the status of materials in stock
- Changing the type of materials in stock
Answer: c
Difficulty: Easy
Section: Transfer Postings
- What is a stock transfer used for?
- To change the status or type of materials in stock
- To show material movements when a material is received in the warehouse from the vendor’s location
- To indicate that a material-to-material change has been posted
- To physically move materials from a storage location to the client’s warehouse
- To physically move materials within the enterprise from one organizational level or location to another
Answer: e
Difficulty: Easy
Section: Stock Transfers
- 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?
- One-step procedure
- Two-step procedure
- Three-step procedure
- Stock transport order
- None of the above
Answer: a
Difficulty: Difficult
Section: Stock Transfers
- A storage location-to-storage location transfer involves which of the following?
- A stock transfer among several storage locations of two plants
- A stock transfer between two storage locations of two plants
- A stock transfer among several storage locations within the same plant
- A stock transfer between two storage locations within the same plant
- 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
- In plant-to-plant transfer, an FI document
- Is created in both one-step and two-step movements.
- Is created in two-step movements only.
- Is created in one-step movements only.
- Is not created.
Answer: a
Difficulty: Easy
Section: Plant-to-plant transfer
- Which of the following represents the hierarchy of a warehouse?
- Warehouse, storage section, storage type, storage bin
- Warehouse, storage bin, storage section, storage type
- Warehouse, storage type, storage section, storage bin
- Warehouse, storage section, storage bin, storage type
- Warehouse, storage type, storage bin, storage section
Answer: c
Difficulty: Medium
Section: Storage Type
- Shelf storage, pallet storage, and rack storage are examples of
- Storage bins.
- Storage sections.
- Storage types.
- None of the above
Answer: d
Difficulty: Medium
Section: Storage Type
- A storage type is a division of a warehouse based on the characteristics of the
- Weight, width, and type
- Dimensions and profitability.
- Space, materials, and activity.
- Price, space, and type.
- Usage, price, and dimensions.
Answer: c
Difficulty: Medium
Section: Storage Type
- Fast-moving, slow-moving, heavy, light, large, and small are examples of
- Storage bins.
- Storage sections.
- Storage types.
- None of the above.
Answer: c
Difficulty: Medium
Section: Storage Section
- A picking area groups which of the following elements?
- Shelves and pallets
- Storage bins, based on similar picking strategies
- Materials with similar transportation type
- Materials with similar usage
- Materials of the same material type
Answer: b
Difficulty: Medium
Section: Picking area
- If a company stores a material in a storage location that is associated with a warehouse, then it must include additional data
- In the storage location stock view of the material master for that material.
- In the basic data view of the material master for that material.
- In the general plant data/storage view of the material master for that material.
- In the warehouse management view of the material master for that material.
- No data need to be added.
Answer: d
Difficulty: Medium
Section: Material master
- Shelves, stacks, and aisles are examples of
- Storage locations.
- Coordinate systems for addresses.
- Storage sections.
- Storage identifiers.
- Storage areas.
Answer: b
Difficulty: Easy
Section: Storage bins
- Which of the following represents the document used to plan the movement of materials into and out of bins in a warehouse?
- Transfer list
- Transfer request
- Transfer plan
- Transfer order
- Transfer requirement
Answer: b
Difficulty: Medium
Section: Plan Warehouse movement
- Which of the following is a request to change the status of the material?
- Posting change notice
- Notice for change
- Material change list
- Status request list
- Change request
Answer: a
Difficulty: Easy
Section: Tasks
- 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?
- The transfer order will have multiple line items for the material.
- More than one transfer order needs to be created.
- The material will be written in one line item.
- An internal order request will be created to move the material into one source bin.
- This scenario is impossible.
Answer: a
Difficulty: Difficult
Section: Execute warehouse movement -> Data
- The ERP system can create transfer orders automatically, but only when
- A destination is known.
- The reference document is a transfer requirement
- A warehouse movement type is specified.
- A reference document exists.
- Both the plant and the storage location are known.
Answer: d
Difficulty: Medium
Section: Tasks
- Which of the following represents a possible sequence of steps in the warehouse movement process?
- Create a transfer request, physically move the materials, confirm the movement, retrieve the transfer request
- Physically move the materials, confirm the movement, create a transfer request, retrieve the transfer request
- Physically move the materials, generate a transfer order, confirm the movement, retrieve the transfer order
- Generate a transfer order, retrieve the transfer order. confirm the movement, physically move the materials
- Generate a transfer order, physically move the materials, retrieve the transfer order, confirm the movement
Answer: e
Difficulty: Difficult
Section: Confirm warehouse movement
- In warehouse management steps associated with the procurement process, the warehouse inventory is calculated as sum of the inventory in the following places:
- Storage sections and storage areas
- Warehouse bins and storage sections
- Interim storage areas and warehouse bins
- Storage locations and storage sections
- Storage locations and storage areas
Answer: c
Difficulty: Medium
Section: Confirm warehouse movement
- 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 goods receipt triggers WM process steps.
- A simple goods receipt is recorded in IM.
- A goods issue triggers WM process steps.
- A simple goods issue is recorded in IM.
- None of the above
Answer: b
Difficulty: Medium
Section: Warehouse management in stock transfers
- In a bin status report, double-clicking on a bin that contains materials
- Produces a drilldown report showing details of the materials.
- Opens a screen that enables you to change which bin is shown on the report.
- Produces information about the bin location.
- Opens a screen where storage bin information can be configured.
- Will not display any data.
Answer: a
Difficulty: Medium
Section: Reporting
- Warehouse management is typically used
- By organizations that have small quantities of materials.
- By transportation companies.
- By organizations that have either large quantities of materials or an expensive inventory.
- By storage companies.
- By organizations that demand better reporting for their inventory.
Answer: c
Difficulty: Easy
Section: Chapter summary
Question type: True or False
- A storage location is a key organizational level associated with inventory management.
Answer: True
Difficulty: Easy
Section: Inventory Management
- The most relevant category of master data in inventory management is the plant.
Answer: False
Difficulty: Medium
Section: Inventory Management
- A goods receipt cannot be posted without reference to an order.
Answer: False
Difficulty: Easy
Section: Goods Receipt
- 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
- A goods issue results in the creation of appropriate material, FI, and CO documents.
Answer: True
Difficulty: Easy
Section: Goods Issue
- A goods issue, unlike a goods receipt, can be posted without reference to an order.
Answer: False
Difficulty: Easy
Section: Goods Issue
- A goods issue, unlike a goods receipt, results in a decrease in inventory.
Answer: True
Difficulty: Easy
Section: Goods Issue
- A transfer posting always involves an actual movement of materials.
Answer: False
Difficulty: Easy
Section: Transfer Postings
- To change a material number you need to create a change request.
Answer: False
Difficulty: Easy
Section: Transfer Postings
- 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
- A stock transfer involves physically moving materials.
Answer: True
Difficulty: Easy
Section: Stock Transfers
- 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
- A material document is created during both the one-step and two-step procedures.
Answer: True
Difficulty: Easy
Section: Stock Transfers
- During the one-step procedure, two material documents are created.
Answer: False
Difficulty: Easy
Section: Stock Transfers
- 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
- 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
- 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
- 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
- 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
- Stock transport orders with delivery include the invoice verification step.
Answer: False
Difficulty: Easy
Section: Stock transport orders with delivery
- 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
- 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
- A storage location can be linked to only one warehouse.
Answer: True
Difficulty: Easy
Section: Organizational data in warehouse management
- 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
- Storage sections represent the physical links between IM and WM.
Answer: False
Difficulty: Medium
Section: Storage type
- Shelf storage is an example of a storage type
Answer: True
Difficulty: Easy
Section: Storage type
- Lightweight materials are designated as fast-moving materials.
Answer: False
Difficulty: Easy
Section: Storage section
- A picking area groups materials with the same material type.
Answer: False
Difficulty: Easy
Section: Picking area
- Storage bins are the smallest unit of space in a warehouse.
Answer: True
Difficulty: Easy
Section: Storage bins
- Transfer requirements can be created manually as well as automatically.
Answer: True
Difficulty: Medium
Section: Tasks
- Transfer orders are used to execute warehouse movements.
Answer: True
Difficulty: Easy
Section: Execute Warehouse Movement
- Transfer orders can only be created automatically.
Answer: False
Difficulty: Easy
Section: Execute Warehouse Movement
- 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
- Transfer orders in the execute warehouse management step can be created with or without a reference document.
Answer: True
Difficulty: Easy
Section: Tasks
- One of the steps of the inventory management process related to procurement is post goods issue.
Answer: False
Difficulty: Easy
Section: Plant warehouse movement
- Inventory management in the production process involves a goods issue and a goods receipt.
Answer: True
Difficulty: Easy
Section: Warehouse management in production
- 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