Deck 17: Enterprise Resource Planning Systems

Question 1

A strength of ERP systems is that it is not necessary to have consistent definitions across all functional areas.

Answer 1

False

Question 2

A typical ERP system has modules that use the same user interface, similar to that of Microsoft Office products.

Answer 2

True

Question 3

Quality management software supports the activities associated with planning and performing repairs and preventive maintenance.

Answer 3

False

Question 4

Drilling down means descending through an existing hierarchy to bring out more and more details from a database.

Question 5

A SAP system can accommodate items that must be maintained in inventory while simultaneously supporting JIT efforts for other items.

Question 6

A limitation of traditional financial metrics is that they primarily tell a story of past events.

Question 7

Data warehouses are useful mechanisms to support daily routine tasks.

Question 8

Because the scope of ERP packages is very large, it is rarely necessary to add additional software.

Question 9

ERP systems allow for integrated planning across the different functional areas in a firm.

Question 10

Only manufacturing affects the inventory account.

Question 11

One of the weaknesses of SAP is the inability to link with most mobile devices.

Question 12

When moving product, it is optimal to focus on the lowest price quote of each individual distribution stage.

Question 13

ERP systems can be inefficient at handling the numerous transactions that document the activities of a company.

Question 14

Defects often occur during changeovers.

Question 15

When selecting an ERP system, it is possible to take a multivendor approach.

Question 16

The term "enterprise resource planning (ERP)" can mean different things.

Question 17

The supply chain design module provides a centralized overview of the entire supply chain and key performance indicators.

Question 18

In the functional silo approach, the purchasing function typically considers quality a goal.

Question 19

Microsoft Dynamics is the largest ERP vendor.

Question 20

Asset turns is a measure of cash flow.

Question 21

"A measure that is used to determine how many times the same asset can be used to generate revenue and profit" is the definition of which of the following?

A)Asset turns
B)Cash-to cash cycle
C)Production cycle
D)Inventory turns

Question 22

How often are major software changes typically made to ERP?

A)Every 12 months
B)Every 1 to 2 years
C)Every 3 to 5 years
D)Every 5 to 10 years

Question 23

Accounts receivable is the amount owed the firm by its suppliers.

Question 24

Which of the following is not an aspect of ERP that determines quality?

A)The software should be multifunctional.
B)The software should be integrated.
C)The software should narrowly focus on a single function.
D)The software must facilitate basic planning.

Question 25

What is the name of Microsoft's version of ERP?

A)Dynamics
B)Manugistics
C)Oracle
D)i2

Question 26

What set of applications supports the capabilities needed to manage, schedule, pay, hire, and train people who make the organization run?

A)Sales and marketing
B)Manufacturing
C)Logistics
D)Human resources

Question 27

What is transaction processing?

A)The decision support system used to efficiently handle multiple transactions
B)The posting and tracking of the detailed activities of a business
C)The movement of paperwork through a system using a decision tree
D)The scheduling of machinery to minimize time and scrap

Question 28

What information is necessary to calculate the cash-to-cash cycle time?

A)Inventory, lead time, accounts receivable, sales
B)Accounts payable, lead time, accounts receivable, inventory
C)Accounts payable, cost of sales, accounts receivable, inventory
D)Accounts payable, lead time, accounts receivable, assets

Question 29

Which of the following is not a benefit of running large batches in a manufacturing setting?

A)Create larger inventories.
B)Minimize equipment downtime.
C)Increase equipment and labor utilization.
D)Improve quality performance.

Question 30

Within ERP, which set of applications is the largest and most complicated?

A)Finance
B)Manufacturing and logistics
C)Sales and marketing
D)Human resources

Question 31

What is an example of an issue that might be addressed by supply chain event management?

A)A customer complains that a product arrived damaged.
B)A customer complains that he is unhappy with the product's new packaging design.
C)A customer decides to change her order in the next ordering cycle.
D)A customer would like to discuss getting a quantity discount in the next billing cycle.

Question 32

Which is not one of the main functions of SAP?

A)Supply chain planning
B)Supply chain execution
C)Supply chain collaboration
D)Supply chain redesign

Question 33

On which four major areas do ERP modules typically focus?

A)Finance, manufacturing and logistics, sales and marketing, human resources
B)Accounting, finance, human resources, manufacturing
C)Accounting, finance, information technology, manufacturing
D)Information technology, manufacturing, logistics, accounting

Question 34

What are two of the main objectives of ERP?

A)Transaction processing and decision support
B)Product tracking and customer invoicing
C)Transaction processing and logistic optimizing
D)Resource tracking and master schedule planning

Question 35

What industries find CRP most useful?

A)Manufacturing and engineering industries
B)Sports and entertainment industries
C)Consumer product and retail industries
D)Financial and accounting industries

Question 36

What three functional areas make up the manufacturing operating cycle?

A)Manufacturing, sales, and distribution
B)Purchasing, manufacturing, and logistics
C)Procurement, engineering, and sales
D)Purchasing, manufacturing, and sales and distribution

Question 37

What is the common name for a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in a firm by way of a shared database?

A)Entrepreneurial resource programming (ERP)
B)Enterprise resource planning (ERP)
C)EndeavorEndeavour reconstruction planning (ERP)
D)Enterprise retention programming (ERP)

Question 38

What is the primary goal of an ERP system?

A)The integration of data processes and data storage
B)Creating consistent definitions across all functional areas
C)The efficient handling of the transactions as goods move through each step of the process
D)The scheduling of machinery to minimize downtime and reduce scrap

Question 39

Which of the following is a main benefit of processing transactions in real time?

A)There is no delay in the processing of the transaction.
B)The amount of detail available in the system is extremely rich.
C)It allows for immediate analysis, which can be valuable in making improvements.
D)All of these

Question 40

If a small company has average daily sales of $5,000 and accounts receivable of $150,000, what is the average days of accounts receivable?

A)30 days
B)3.3 days
C)$5,000/month
D)33.3 days

Question 41

The four sub-functions: procurement, manufacturing, sales and distribution in the manufacturing operating cycle.Chhose the most appropriate choice which describes the goal of these sub-functions.

A)Purchasing is concerned with minimizing materials cost and Manufacturing with minimizing production costs.
B)Manufacturing with minimizing inventory and work-in-process cost.
C)Sales is concerned with selling the greatest amount and distribution with minimizing distribution and warehousing costs.
D)A and C only
E)A, B and C

Question 42

What will the change in the value of cash-to-cash cycle if , AR_d is reduced by 4 days and I_d is increased by 3 days while all other things remain the same?

A)Increase by 7 days
B)decrease by 7 days
C)Increase by 1 day
D)Decrease by 1 day
E)Unchanged

Question 43

In the cash-to-cash cycle calculation, if the cost of goods sold per day increases, but all other data such as average inventory and average payables and receivables remain the same, then the value of cash-to-cash cycle will

A)go down
B)go up
C)stay the same
D)May go up or down, but cannot tell without more information

Question 44

Transaction processing is real-time means (choose the most appropriate answer)

A)An inventory receipt will show up as soon as it is received, but it could be in the pending approval category.
B)A production batch completion will be transmitted to all appropriate tables as soon as it is entered.
C)A customer could call into the order desk to know the status of the order
D)A customer could know the status of his or her balance with the firm as soon as he/she mails the check.
E)A, B and C only.

Question 45

What is the cash-to-cash cycle time if AR_d = 6.5 days, I_d = 22.2 days, and AP_d = 4.2 days?

A)32.9 days
B)19.9 days
C)16.45 months
D)24.5 days