OPRE 4320 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
Enterprise Resource Planning - Answers - integration of financial, manufacturing &
human resources on a single system -- cross-functional team
ERP Implementaion - Answers - High costs initially, high cost to maintain, future
upgrades, training and long implementation time
What are ERP Systems? - Answers - Incredibly large, extensive software packages
used to manage a firm's business processes
Who are the big ERP software companies? - Answers - SAP, the German juggernaut,
Systems, Analysis and Products in Data processing, Oracle/PeopleSoft/JD Edwards,
Microsoft Great Plains
What is a client? - Answers - A way to separate data in the system
Supply Chain - Answers - a network of organizations that are linked together to directly
or indirectly fulfill an end-customer's request for a product or service
Organizational Data - Answers - defined as part of the configuration process. Example:
plant=1000, storage location=001
Master Data - Answers - data that is relatively static or unchanged over a period of time
Transaction Data - Answers - Data is the result from executing a transaction or data
base entry
Plant - Answers - Organizational unit within a company, a place where valuated goods
and services are manufactured, stored, consumed and distributed
Storage Location - Answers - Organizational unit where various inventories of materials
may be kept in a plant, will typically but not always store raw materials, component
materials, MRO materials
Material Master - Answers - basic building block of all supply chain management activity
Material Masters are always defined with - Answers - respect to a Material AND a Plant
The material master has a hierarchical structure which covers the following
organizational levels: - Answers - Client, plant, storage location
, The hierarchical structure of MM makes it easier to do what? - Answers - organize info
on materials and minimizes data redundancy
How are material master records grouped? - Answers - According to industry and
material type
What does material type control? - Answers - Which departments are able to maintain
material data, quantities and values are updated in the system, material is procured
in/externally, which G/L accounts are updated
What does the industry sector determine? - Answers - Which branch of industry the
material is assigned to
What business processes issues can occur when managing materials? - Answers -
Inventory Management, , material selection, material sourcing - , inactive materials,
Maintaining Data in SAP
Inventory Management - Answers - defining inventory policy and managing the
inventory balance so there is adequate but not too much inventory
Material Selection - Answers - different material numbers that describe the same
Material Sourcing - Answers - too many sources for the same material
Inactive Materials - Answers - purging inventory of inactive materials, identifying
replacement material
Maintaining Data in SAP - Answers - Centralized vs de-centralized data maintenance
responsibility, inadequate IT security for data maintenance
A bill of material is - Answers - a complete, formally structured list of the components
that make up a product or assembly
What does a BOM list contain? - Answers - a description and object number for each
component, together with the quantity and unit of measure
How many types of BOMs in SAP and what are they referred to as? - Answers - Three
important types, Simple BOM, Alternative BOM, Variant BOM and they are referred to
as technical types
Simple BOM - Answers - 1 product with fixed set of material items
Alternative BOM - Answers - 1 product with multiple sets of material items
Variant BOM - Answers - Multiple products with multiple sets of material itesm
ANSWERS
Enterprise Resource Planning - Answers - integration of financial, manufacturing &
human resources on a single system -- cross-functional team
ERP Implementaion - Answers - High costs initially, high cost to maintain, future
upgrades, training and long implementation time
What are ERP Systems? - Answers - Incredibly large, extensive software packages
used to manage a firm's business processes
Who are the big ERP software companies? - Answers - SAP, the German juggernaut,
Systems, Analysis and Products in Data processing, Oracle/PeopleSoft/JD Edwards,
Microsoft Great Plains
What is a client? - Answers - A way to separate data in the system
Supply Chain - Answers - a network of organizations that are linked together to directly
or indirectly fulfill an end-customer's request for a product or service
Organizational Data - Answers - defined as part of the configuration process. Example:
plant=1000, storage location=001
Master Data - Answers - data that is relatively static or unchanged over a period of time
Transaction Data - Answers - Data is the result from executing a transaction or data
base entry
Plant - Answers - Organizational unit within a company, a place where valuated goods
and services are manufactured, stored, consumed and distributed
Storage Location - Answers - Organizational unit where various inventories of materials
may be kept in a plant, will typically but not always store raw materials, component
materials, MRO materials
Material Master - Answers - basic building block of all supply chain management activity
Material Masters are always defined with - Answers - respect to a Material AND a Plant
The material master has a hierarchical structure which covers the following
organizational levels: - Answers - Client, plant, storage location
, The hierarchical structure of MM makes it easier to do what? - Answers - organize info
on materials and minimizes data redundancy
How are material master records grouped? - Answers - According to industry and
material type
What does material type control? - Answers - Which departments are able to maintain
material data, quantities and values are updated in the system, material is procured
in/externally, which G/L accounts are updated
What does the industry sector determine? - Answers - Which branch of industry the
material is assigned to
What business processes issues can occur when managing materials? - Answers -
Inventory Management, , material selection, material sourcing - , inactive materials,
Maintaining Data in SAP
Inventory Management - Answers - defining inventory policy and managing the
inventory balance so there is adequate but not too much inventory
Material Selection - Answers - different material numbers that describe the same
Material Sourcing - Answers - too many sources for the same material
Inactive Materials - Answers - purging inventory of inactive materials, identifying
replacement material
Maintaining Data in SAP - Answers - Centralized vs de-centralized data maintenance
responsibility, inadequate IT security for data maintenance
A bill of material is - Answers - a complete, formally structured list of the components
that make up a product or assembly
What does a BOM list contain? - Answers - a description and object number for each
component, together with the quantity and unit of measure
How many types of BOMs in SAP and what are they referred to as? - Answers - Three
important types, Simple BOM, Alternative BOM, Variant BOM and they are referred to
as technical types
Simple BOM - Answers - 1 product with fixed set of material items
Alternative BOM - Answers - 1 product with multiple sets of material items
Variant BOM - Answers - Multiple products with multiple sets of material itesm
