Deck 17: Enterprise Resource Planning Systems

Question 1

Asset turns is a measure of cash flow.

Answer 1

False
Explanation: Cash-to-cash time is a measure of cash flow.Asset turns is a measure of how many times the same assets can be used to generate revenue and profit.

Question 2

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

Answer 2

True
Explanation: The term "enterprise resource planning (ERP)" can mean different things depending on one's point of view.Managers or IT specialists may focus on different aspects.

Question 3

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

Answer 3

False
Explanation: Plant maintenance supports the activities associated with planning and performing repairs and preventive maintenance.Quality management software implements procedures for quality control and assurance.

Question 4

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

Question 5

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

Question 6

Only manufacturing affects the inventory account.

Question 7

Data warehouses are useful mechanisms to support daily routine tasks.

Question 8

Microsoft Dynamics is the largest ERP vendor.

Question 9

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

Question 10

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

Question 11

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

Question 12

Defects often occur during changeovers.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

"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 29

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 30

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 31

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 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

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 34

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)Endeavor reconstruction planning (ERP)
D)Enterprise retention programming (ERP)

Question 35

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 36

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

Question 37

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 38

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 39

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 40

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

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

Question 41

_______________ indicates where cash comes from (its source), where cash is spent (its use), and the net change in cash for the year.

Question 42

____________________________ is a term that refers to delivering hosted ERP services over the Internet.This can significantly reduce the cost of ERP.

Question 43

What are some ways in which ERP can be used to link functional areas of a firm?

Question 44

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

Question 45

An important point to keep in mind is that ____________ not software, make decisions.ERP systems simply _________________________ better decision making.

Question 46

Discuss some of the benefits of using an ERP system.

Question 47

In what ways can ERP be used to strengthen the entire supply chain?