Deck 8: Supporting the Procurement Process With SAP

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

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

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

Finding reliable suppliers is a procurement objective among organizations.

Question 12

Human actors initiate the purchasing request in an SAP system.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

Supply chain processes are improved when processes share data.

Question 24

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

Question 25

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

Question 26

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

Question 27

SAP makes procurement processes more responsive to customer demands.

Question 28

Many firms first use SAP to improve just one function of the business,such as the supply chain.

Question 29

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

Question 30

SAP systems store all procurement data in a single database.

Question 31

Process integration occurs when processes are mutually supportive.

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

The Supplier Relationship Management (SRM)process complicates the supply chain process.

Question 38

Organizations typically implement SAP systems for just one process.

Question 39

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

Question 40

Every SAP screen has a title.

Question 41

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 42

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 43

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 44

Additive manufacturing is also known as two-dimensional printing.

Question 45

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 46

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 47

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 48

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 49

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 50

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

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

Question 51

Robots and drones are a key emerging technology for procurement and the supply chain.

Question 52

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 53

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 54

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 55

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

Question 56

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 57

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 58

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

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

Question 59

________ 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 60

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) invoice or itemized bill
D) purchase requisition

Question 61

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 62

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 63

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

Question 64

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 65

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 66

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 67

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 68

Describe procurement in an organization.

Question 69

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 70

______________determines the criteria for supplier selection and adds and removes suppliers from the list of approved suppliers.

A) The Procurement Process
B) Data Sharing
C) The Supplier Evaluation Process
D) Supply Chain Management (SCM)

Question 71

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 72

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 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

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 75

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 76

What are the main procurement activities?

Question 77

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 78

An organization shares ________ with its suppliers using SAP.

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

Question 79

Describe the importance of procurement as an organizational process.

Question 80

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 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