CIS 360 EXAM 3 QUESTIONS WITH VERIFIED
ANSWERS
Transaction Process System (TPS) - Answers - Capture and process detailed data
necessary to update records about fundamental business operations
What are some examples of transaction processing systems? - Answers - Order entry,
inventory control, payroll, accounts payable, accounts receivable
What does a transaction processing system provide valuable input into? - Answers -
Management Information Systems (MIS)
Decision Support Systems (DSS)
Knowledge Management Systems (KMS)
Does a transaction processing system provide decision making support? - Answers - No
Batch Processing System - Answers - System in which business transactions are
accumulated over a period of time and are prepared for processing as a single unit, or
batch
Online Transaction Processing (OLTP) - Answers - System in which each transaction is
processed immediately, without the delay of accumulating transactions into a batch
What are the four advantages of enterprise resource planning (ERP)? - Answers - -
Improved access to data for operational decision making
-Elimination of costly, inflexible legacy systems
-Improvement of work processes (developed based on the best business process; "best
practice" - the most effective and efficient ways to complete a business transaction)
-Upgrade of technology infrastructure
What two things does supply chain management include? - Answers - -Planning,
executing, and controlling all activities involved in raw material sourcing and
procurement
-Converting raw materials to finished products, and warehousing and delivering finished
product to customers
In what decade did an integrated ERP system first become feasible? - Answers - 1990s
Sales and Operations Planning - Answers - Produce the production plan that is
designed to balance market demand with production capacity
What is the output of demand management? - Answers - Master Production Schedule
(MPS)
, Master Production Schedule (MPS) - Answers - Production plan for all finished goods
Materials Requirements Planning (MRP) - Answers - Determines required quantity and
timing of production or purchase of subassemblies and raw materials
Bill of Material (BOM) - Answers - List of the materials (including quantities needed to
make a product
Lead Time - Answers - Cumulative time required for the supplier to receive and process
the order, take the material out of stock, package it, load it into a truck, and deliver it to
a manufacturer
Lot Sizing - Answers - Determining production quantities and order quantities
Detailed Scheduling - Answers - Detailed plan of what is to be produced, considering
machine capacity and available labor
What is the one key decision involved in detailed scheduling? - Answers - How long to
make the production runs for each product
Marketing influences decisions in: - Answers - -What products to produce
-How much of each product to produce
-How the products are to be promoted and advertised
-How the products should be distributed for maximum customer satisfaction
-What price should be charged for the products
The electronic evidence of a transaction in SAP ERP is called a... - Answers - document
SAP ERP Sales and Distribution module treats the sales order process as a cycle of 6
events: - Answers - 1. Pre-sales activities
2. Sales order processing
3. Inventory sourcing
4. Delivery
5. Billing
6. Payment
In Pre-Sales Activities, what are the two ways customers can get pricing information
about the company's products? - Answers - Through an inquiry or a price quotation
Inquiry - Answers - Statement of prices with no guarantee implied
Price Quotation - Answers - Written, binding document; seller guarantees the buyer that
for some specified period of time he can buy the products at the quoted price
ANSWERS
Transaction Process System (TPS) - Answers - Capture and process detailed data
necessary to update records about fundamental business operations
What are some examples of transaction processing systems? - Answers - Order entry,
inventory control, payroll, accounts payable, accounts receivable
What does a transaction processing system provide valuable input into? - Answers -
Management Information Systems (MIS)
Decision Support Systems (DSS)
Knowledge Management Systems (KMS)
Does a transaction processing system provide decision making support? - Answers - No
Batch Processing System - Answers - System in which business transactions are
accumulated over a period of time and are prepared for processing as a single unit, or
batch
Online Transaction Processing (OLTP) - Answers - System in which each transaction is
processed immediately, without the delay of accumulating transactions into a batch
What are the four advantages of enterprise resource planning (ERP)? - Answers - -
Improved access to data for operational decision making
-Elimination of costly, inflexible legacy systems
-Improvement of work processes (developed based on the best business process; "best
practice" - the most effective and efficient ways to complete a business transaction)
-Upgrade of technology infrastructure
What two things does supply chain management include? - Answers - -Planning,
executing, and controlling all activities involved in raw material sourcing and
procurement
-Converting raw materials to finished products, and warehousing and delivering finished
product to customers
In what decade did an integrated ERP system first become feasible? - Answers - 1990s
Sales and Operations Planning - Answers - Produce the production plan that is
designed to balance market demand with production capacity
What is the output of demand management? - Answers - Master Production Schedule
(MPS)
, Master Production Schedule (MPS) - Answers - Production plan for all finished goods
Materials Requirements Planning (MRP) - Answers - Determines required quantity and
timing of production or purchase of subassemblies and raw materials
Bill of Material (BOM) - Answers - List of the materials (including quantities needed to
make a product
Lead Time - Answers - Cumulative time required for the supplier to receive and process
the order, take the material out of stock, package it, load it into a truck, and deliver it to
a manufacturer
Lot Sizing - Answers - Determining production quantities and order quantities
Detailed Scheduling - Answers - Detailed plan of what is to be produced, considering
machine capacity and available labor
What is the one key decision involved in detailed scheduling? - Answers - How long to
make the production runs for each product
Marketing influences decisions in: - Answers - -What products to produce
-How much of each product to produce
-How the products are to be promoted and advertised
-How the products should be distributed for maximum customer satisfaction
-What price should be charged for the products
The electronic evidence of a transaction in SAP ERP is called a... - Answers - document
SAP ERP Sales and Distribution module treats the sales order process as a cycle of 6
events: - Answers - 1. Pre-sales activities
2. Sales order processing
3. Inventory sourcing
4. Delivery
5. Billing
6. Payment
In Pre-Sales Activities, what are the two ways customers can get pricing information
about the company's products? - Answers - Through an inquiry or a price quotation
Inquiry - Answers - Statement of prices with no guarantee implied
Price Quotation - Answers - Written, binding document; seller guarantees the buyer that
for some specified period of time he can buy the products at the quoted price
