Deck 7: Supporting the Procurement Process With Sap

Question 1

Large organizations prefer to use SAP,Oracle,or Microsoft because they support the integration of a wide variety of processes.

Answer 1

True

Question 2

Outbound logistics is the primary activity in the procurement process that involves receiving,storing,and disseminating inputs to products.

Answer 2

False

Question 3

The steps required to install an ERP system is referred to as the implementation process.

Answer 3

True

Question 4

The structure of an industry can be determined by using Porter's five forces model.

Question 5

The purchasing agents in an organization had diverse training and experience prior to the implementation of SAP,which in turn led to a variety of mistakes on the purchase order.

Question 6

A gap analysis is performed to identify the suitable ERP vendor for an organization.

Question 7

A company stores the products that it manufactures in its raw materials inventory.

Question 8

Organizations must create procedures instructing employees on how to use the SAP system to execute its processes.

Question 9

Products awaiting delivery to customers are stored in the finished goods inventory.

Question 10

A major disadvantage of implementing SAP is that it weakens the internal controls that exist within an organization.

Question 11

The use of the SAP procurement process in place of the traditional procurement process signifies that the same major activities are conducted but with significant changes in the Order activity.

Question 12

Traditional procurement processes enabled the generation of real-time accounting reports.

Question 13

Finding reliable suppliers is a procurement objective among organizations.

Question 14

Procurement is an operational process executed hundreds or thousands of times a day in a large organization.

Question 15

Buying raw materials from an external vendor is an example of procurement.

Question 16

Before the advent of SAP,most large organizations typically consolidated data in a single database.

Question 17

A purchase requisition is a formal order sent to a supplier for the purchase of materials.

Question 18

Organizations can configure the industry-specific inherent processes programmed in SAP.

Question 19

A three-way match refers to the consistency in data between the invoice,purchase order,and the receipt of goods.

Question 20

Prior to the implementation of SAP,the warehouse manager was responsible for the maintenance of inventory levels.

Question 21

Supply chain processes are improved when processes share data.

Question 22

The implementation of SAP does not require existing employees to change or upgrade their skills.

Question 23

SAP enables organizations to share real-time data with suppliers,but it slows down the procurement process.

Question 24

Each actor involved in the procurement process interacts with SAP using a single,shared screen.

Question 25

SAP systems store all procurement data in a single database.

Question 26

While using SAP,the purchasing manager must notify the corresponding suppliers after each purchase order has been saved.

Question 27

Sharing data leads to an increase in the bullwhip effect in the supply chain.

Question 28

A three-way check must be performed in a procurement process before posting an outgoing payment to a vendor.

Question 29

Users can input data in the header section of an SAP screen.

Question 30

The bullwhip effect occurs when companies order more supplies than are needed due to a sudden change in demand.

Question 31

During the procurement process,the purchase requests that are generated using SAP are shared directly with suppliers.

Question 32

The adaptation of SAP may lead organizations to use more outsourcing.

Question 33

SAP systems automatically track raw material inventory and generate purchase requisitions when reorder levels are reached.

Question 34

A purchasing manager is responsible for the approval of a purchase request to be converted into a purchase order.

Question 35

Organizations typically implement SAP systems for just one process.

Question 36

Every SAP screen has a title.

Question 37

Human actors initiate the purchasing request in an SAP system.

Question 38

Process integration occurs when processes are mutually supportive.

Question 39

SAP makes procurement processes more responsive to customer demands.

Question 40

SAP process integration enables organizations to quickly respond to new consumer demands.

Question 41

________ is the process of obtaining the goods and services needed by an organization.

A) Production
B) Procurement
C) Lead generation
D) Outbound logistics

Question 42

A software consulting firm sends a formal document to its supplier,requesting the delivery of 50 desktop computers.This is an example of a(n)________.

A) term sheet
B) memorandum of association
C) purchase order
D) itemized bill

Question 43

Organizations use ________ to identify where their process expectations differ from SAP capabilities.

A) gap analysis
B) bottlenecks
C) three-way match
D) critical path method

Question 44

A car manufacturer purchases components such as seat belts,fenders,window seals,and panels from outside sources.This process of obtaining goods is called ________.

A) procurement
B) production
C) lead generation
D) outbound logistics

Question 45

Akers Inc.,an IT services company,selects SAP as the preferred ERP vendor to integrate its supply chain with that of its business partners.In this case,which of the following steps would Akers most likely take next in implementing the ERP system?

A) determining the structure of its industry
B) picking inherent processes
C) measuring the system performance
D) performing a gap analysis

Question 46

Which of the following documents is received by a firm from its suppliers and contains details such as the amount due to the supplier and the purchase order number?

A) memorandum of association
B) term sheet
C) itemized bill
D) purchase requisition

Question 47

RSA Cycles,Inc.is a leading bicycle manufacturer.The company manufactures bicycles that cater to different market segments.Which of the following items stored in RSA's warehouse is considered finished goods inventory?

A) metal parts obtained from small suppliers
B) tires that are procured from a vendor
C) bicycles that are to be shipped to retailers
D) tools that workers use in the production process

Question 48

Augmenting reality with procurement data makes procurement and production activities more efficient.

Question 49

Which of the following is the first step in implementing an ERP system?

A) selecting an ERP vendor
B) creating a single inventory database
C) assessing the industry structure
D) configuring the ERP software

Question 50

________ systematically limit(s)the actions and behaviors of employees,processes,and organizational systems to safeguard assets and to achieve objectives.

A) Internal controls
B) Collaborative systems
C) Distributed systems
D) Augmented reality

Question 51

Which of the following is a major concern for organizations having departments that build their own systems?

A) information silos
B) centralized database
C) itemized bills
D) integrated systems

Question 52

Which of the following is a written document that requests the delivery of a specified quantity of a product or service in return for payment?

A) memorandum of association
B) purchase order
C) term sheet
D) itemized bill

Question 53

Transportation is the lowest cost activity of the procurement process.

Question 54

Additive manufacturing is also known as two-dimensional printing.

Question 55

Which of the following activities in the value chain obtains raw material and semi-finished goods needed for the production process of an operations activity?

A) inbound logistics
B) customer service
C) marketing and sales
D) lead generation

Question 56

Finished goods inventory contains items that are ________.

A) used as inputs in the firm's manufacturing process
B) awaiting delivery to customers
C) returned by customers due to quality issues
D) procured from suppliers for the production process

Question 57

Which of the following is a warehouse concern faced by organizations without an ERP system?

A) lack of financial control
B) insufficient inventory
C) accuracy of the three-way match
D) product promotions

Question 58

When does the lead time in a procurement process come to an end?

A) when an order arrives at the warehouse
B) when an invoice is received from the supplier
C) when ordered goods are reflected in the purchase order database
D) when an order is placed with a supplier

Question 59

The resources of a procurement process are referred to as ________.

A) shares
B) services
C) invoices
D) inventories

Question 60

Raw materials inventory stores product components and other goods that are ________.

A) manufactured within an organization
B) assembled and ready to be shipped to customers
C) returned by customers
D) procured from suppliers

Question 61

Which of the following is an objective of the returns management process?

A) efficiently getting the defective products to the right supplier in the supply chain
B) automating and simplifying a variety of supply chain processes
C) determining the criteria for supplier selection and adding and removing suppliers
D) designing and integrating all supply chain processes

Question 62

SAP can reduce the lead time in procurement processes due to its ability to ________.

A) perform gap analysis
B) share real-time data
C) perform manual processes
D) decentralize information

Question 63

Which of the following actions is most likely performed manually in a procurement process using SAP?

A) notifying the supplier
B) generating a purchase request
C) approving a purchase requisition
D) creating a unique PO number

Question 64

A(n)________ is an internal company document that issues a request for a purchase.

A) term sheet
B) request tracker
C) itemized bill
D) purchase requisition

Question 65

A manufacturer wants to keep track of all of its shipments to suppliers,retailers,and customers until delivery.Which of the following is used for this purpose?

A) radio-frequency identification
B) roll-up technology
C) augmented reality
D) additive manufacturing

Question 66

A large manufacturing company offered a 40 percent discount on all its products for a short period of time.As a result,the retailers ordered and stocked more products than needed in order to cash in on the opportunity.This scenario exemplifies the ________.

A) just-in-time effect
B) roll-up process
C) Doppler effect
D) bullwhip effect

Question 67

An organization shares ________ with its suppliers using SAP.

A) sales revenue information
B) purchase orders
C) purchase requests
D) warehouse statistics

Question 68

The systems manager of an organization issues a request to the purchasing manager for the purchase of 15 new desktop computers.This document is an example of a(n)________.

A) request tracker
B) purchase requisition
C) term sheet
D) itemized bill

Question 69

Which of the following statements is true about the effect of implementing SAP in the accounting process?

A) Agents' training and experiences will vary leading to several mistakes in the purchase orders.
B) Real-time data sharing will reduce roll-up time.
C) Three-way discrepancies will take time to correct.
D) Weak internal controls will lead to limited scrutiny of purchases.

Question 70

The returns management process in a supply chain manages ________.

A) returns of faulty inputs used in the production process
B) relationships with internal suppliers
C) returns of faulty products for businesses
D) financial returns from sales and other sources

Question 71

Which of the following is the next step in implementing an SAP system after performing a gap analysis?

A) evaluating ERP vendors
B) determining industry structure
C) crafting process objectives
D) creating a competitive strategy

Question 72

Which of the following statements is true about the impact of SAP on organizations?

A) Organizations become less process-focused after implementing SAP.
B) Organizations tend to avoid outsourcing after implementing SAP.
C) Inter-departmental data sharing reduces after implementing SAP.
D) People require new sets of skills after implementing SAP.

Question 73

Which of the following is most likely the final activity of the procurement process after the implementation of SAP?

A) approving a purchase requisition
B) generating an invoice
C) creating a goods receipt
D) posting an outgoing payment

Question 74

The ________ effect occurs when companies order more supplies than are needed due to a sudden change in demand.

A) just-in-time
B) roll-up
C) bullwhip
D) Doppler

Question 75

A ________ occurs when a limited resource greatly reduces the output of an integrated series of activities or processes.

A) bottleneck
B) buy-in
C) three-way match
D) bullwhip

Question 76

Which of the following is a term that refers to selling a product or system for less than its true price?

A) bottleneck
B) roll up
C) buy-in
D) bullwhip

Question 77

Radio-frequency identification technology is used in supply chains to ________.

A) enable audio authentication
B) facilitate 3D printing
C) enhance the sensory appeal of products
D) recognize and track items

Question 78

With ________,computer data or graphics are overlaid onto the physical environment.

A) radio-frequency identification
B) augmented reality
C) 3D printing
D) digital fabrication

Question 79

In additive manufacturing,objects are manufactured through the ________.

A) placement of integrated chips on objects
B) deposition of successive layers of material
C) superimposition of computer data on physical objects
D) use of computer graphics and animation exclusively

Question 80

Which of the following is a potential solution to the bullwhip effect?

A) increasing the number of levels in the supply chain
B) increasing manufacturing capacity
C) reducing the number of salespeople
D) sharing sales order data in real-time