ERP Exam UPDATED Exam Questions
and CORRECT Answers
An Enterprise Planning and Control system - CORRECT ANSWER - provides information
and support enabling managers to efficiently direct the flow of material, manage the utilization of
people and equipment, and respond to customer requirements by utilizing the capacity of
suppliers, internal facilities, and, in some cases, customers.
Front End - CORRECT ANSWER - -Activities and systems for overall direction setting
Engine - CORRECT ANSWER - -Systems for detailed material and capacity planning
Back End - CORRECT ANSWER - -MPC execution systems
•The fundamental issue is matching supply and demand in terms of both volume and product
mix. - CORRECT ANSWER - •Planning for the right logistics
•Maintaining appropriate inventory levels
•Providing delivery information to customers
•Communicating requirements to suppliers
•Planning capacity to determine employment levels, budgets, overtime and subcontracting needs,
etc.
The system is responsible for providing information to determine - CORRECT ANSWER - -
The appropriate amount of capacity (including supplier capacity) to meet the market demands of
the future.
-Provide the appropriate mix of human resource capabilities, technology, and geographic
locations.
•The MPC system should change as competitive conditions, customer expectations, supplier
capabilities, and internal needs change. - CORRECT ANSWER - •The trend is towards on-
line data access and systems-replacing inventory with speedier information exchange
, •Physical changes (outsourcing, etc.)
•The MPC system must change to match the firm's strategy
•Performance Indicators - CORRECT ANSWER - •Equipment utilization
•Output results
•Costs associated with different departments, products, labor utilization, and project conditions
•Measures of customer satisfaction such as late deliveries, product returns, quantity errors, and
quality
What is ERP? - CORRECT ANSWER - A comprehensive software approach to support
decisions concurrent with planning and controlling the business.
•Functional Silos - CORRECT ANSWER - •Each area is concerned with optimizing its own
operation, with no consideration for how the overall firm is affected
Characteristics of Legacy Systems - CORRECT ANSWER - uNonintegrated business
processes and systems
uEfficient performance within an area
uLack of discipline
uNoncompetitive costs
uPoor internal/external communications
uPoor data integrity
uUnhappy customers
uReactive management
•Data entered by one functional area updates all other functional areas - CORRECT
ANSWER - •Eliminates reposting of data (errors)
•Ensures a common vision
and CORRECT Answers
An Enterprise Planning and Control system - CORRECT ANSWER - provides information
and support enabling managers to efficiently direct the flow of material, manage the utilization of
people and equipment, and respond to customer requirements by utilizing the capacity of
suppliers, internal facilities, and, in some cases, customers.
Front End - CORRECT ANSWER - -Activities and systems for overall direction setting
Engine - CORRECT ANSWER - -Systems for detailed material and capacity planning
Back End - CORRECT ANSWER - -MPC execution systems
•The fundamental issue is matching supply and demand in terms of both volume and product
mix. - CORRECT ANSWER - •Planning for the right logistics
•Maintaining appropriate inventory levels
•Providing delivery information to customers
•Communicating requirements to suppliers
•Planning capacity to determine employment levels, budgets, overtime and subcontracting needs,
etc.
The system is responsible for providing information to determine - CORRECT ANSWER - -
The appropriate amount of capacity (including supplier capacity) to meet the market demands of
the future.
-Provide the appropriate mix of human resource capabilities, technology, and geographic
locations.
•The MPC system should change as competitive conditions, customer expectations, supplier
capabilities, and internal needs change. - CORRECT ANSWER - •The trend is towards on-
line data access and systems-replacing inventory with speedier information exchange
, •Physical changes (outsourcing, etc.)
•The MPC system must change to match the firm's strategy
•Performance Indicators - CORRECT ANSWER - •Equipment utilization
•Output results
•Costs associated with different departments, products, labor utilization, and project conditions
•Measures of customer satisfaction such as late deliveries, product returns, quantity errors, and
quality
What is ERP? - CORRECT ANSWER - A comprehensive software approach to support
decisions concurrent with planning and controlling the business.
•Functional Silos - CORRECT ANSWER - •Each area is concerned with optimizing its own
operation, with no consideration for how the overall firm is affected
Characteristics of Legacy Systems - CORRECT ANSWER - uNonintegrated business
processes and systems
uEfficient performance within an area
uLack of discipline
uNoncompetitive costs
uPoor internal/external communications
uPoor data integrity
uUnhappy customers
uReactive management
•Data entered by one functional area updates all other functional areas - CORRECT
ANSWER - •Eliminates reposting of data (errors)
•Ensures a common vision
