SAP ERP Chapter 8 Multiple Choice exam questions and 100% correct answers

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. - corrrect answer b. To balance the demand for materials with the supply. 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. - corrrect answer a. An opportunity cost. 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. - corrrect answer d. A request to purchase materials. Requirements in the material planning process specify