SAP SCM Exam1 Review
Questions and Answers
- 1.
A PRT that is purchased from an outside supplier does not need a material master.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
When a PRT (Production Resource Tool) is purchased from an outside supplier, it still needs to be managed and tracked within the organization's inventory system. This requires creating a material master record for the PRT, which contains information such as the item's description, vendor details, and storage location. Therefore, the statement that a PRT purchased from an outside supplier does not need a material master is false.Rate this question:
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- 2.
Forecast netting is the process of allocating available supplies to customer reps
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Forecast netting is indeed the process of allocating available supplies to customer representatives. This involves analyzing the forecasted demand and available inventory to determine how much of the supplies can be allocated to each customer representative. By doing so, the available supplies can be distributed efficiently, ensuring that each customer representative receives an appropriate amount of inventory to meet customer demands. Therefore, the statement "True" accurately reflects the concept of forecast netting.Rate this question:
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- 3.
Which supply chain player below will stock inventories and sell in small quantities to customers?
- A.
Retailer
- B.
Distributor
- C.
OEM Manufacturer
- D.
Supplier
- E.
Transporter
Correct Answer
A. RetailerExplanation
A retailer is the supply chain player that stocks inventories and sells in small quantities to customers. They are the final link in the supply chain before the product reaches the end consumer. Retailers typically purchase products in bulk from distributors or manufacturers and then break them down into smaller quantities for sale to individual customers. They play a crucial role in meeting the demands of consumers by providing convenient access to a wide range of products in smaller quantities.Rate this question:
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- 4.
Which supply chain process below is involved in the sharing of information across supply chain partners?
- A.
Move
- B.
Return and Service
- C.
Store
- D.
Collaborate
Correct Answer
D. CollaborateExplanation
The supply chain process involved in the sharing of information across supply chain partners is collaboration. Collaboration refers to the coordination and cooperation between different entities in the supply chain to share information, insights, and resources. This process helps in improving communication, visibility, and efficiency throughout the supply chain network, leading to better decision-making and overall performance.Rate this question:
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- 5.
Which supply chain flow is unidirectional from the back-end of the supply chain to the front end?
- A.
Information
- B.
Finance
- C.
Material
Correct Answer
C. MaterialExplanation
The supply chain flow that is unidirectional from the back-end of the supply chain to the front end is the material flow. This refers to the physical movement of goods and materials from suppliers to manufacturers to distributors and ultimately to customers. Information flow and finance flow can move in both directions, as information and financial transactions can be exchanged between different entities in the supply chain. However, the material flow typically moves in one direction, starting from the back-end of the supply chain and progressing towards the front end.Rate this question:
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- 6.
In which supply chain decision phase would you organize the customers into various segmentation groups?
- A.
Design
- B.
Planning
- C.
Execution
Correct Answer
A. DesignExplanation
In the design phase of the supply chain decision-making process, organizing customers into various segmentation groups is crucial. This involves analyzing customer data, preferences, and behaviors to identify different segments and their specific needs. By doing so, companies can tailor their products, services, and marketing strategies to better meet the requirements of each segment. This helps in optimizing customer satisfaction, improving customer retention, and ultimately driving business growth.Rate this question:
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- 7.
Examples of PRT would include all EXCEPT:
- A.
Dies
- B.
Fixtures
- C.
Software Programs
- D.
Materials to be processed
- E.
Gages
Correct Answer
D. Materials to be processedExplanation
The question is asking for examples of PRT (Production Readiness Test), and the correct answer is "Materials to be processed." This means that materials to be processed are not considered examples of PRT. PRT refers to tools, equipment, or software used in the production process, such as dies, fixtures, software programs, and gages.Rate this question:
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- 8.
To assign a PRT to an operation on a routing you must have:
- A.
PRT Master
- B.
Material Master
- C.
A and B
- D.
Production Version
- E.
None of the above
Correct Answer
A. PRT MasterExplanation
To assign a PRT (Production Resource Tool) to an operation on a routing, you must have a PRT Master. A PRT Master contains all the necessary information about the production resource tool, such as its availability, usage, and maintenance details. Without a PRT Master, it would not be possible to assign a PRT to an operation on a routing, making it the essential requirement for this task. The Material Master and Production Version may contain other relevant information for the production process, but they are not specifically required for assigning a PRT to an operation on a routing.Rate this question:
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- 9.
ERP applications such as SAP R/3 are used primarily for supply chain planning.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
ERP applications such as SAP R/3 are not used primarily for supply chain planning. While supply chain planning is one of the functionalities offered by ERP systems, they are comprehensive business management software that integrates various business processes such as finance, human resources, sales, and customer relationship management. ERP systems provide a centralized platform for managing and automating different aspects of an organization's operations, including inventory management, procurement, production planning, and distribution. Therefore, the given statement is false.Rate this question:
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- 10.
Major ERP software vendors include all EXCEPT?
- A.
SAP
- B.
Oracle
- C.
I2 Technologies
- D.
Microsoft
Correct Answer
C. I2 TechnologiesExplanation
The question is asking for the ERP software vendors that are not included in the list. The given options include SAP, Oracle, i2 Technologies, and Microsoft. The correct answer is i2 Technologies, as it is the only option that is not a major ERP software vendor.Rate this question:
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- 11.
The SAP ERP modules most related to supply chain management are:
- A.
PP/SD/PM B. SD/HR/MM C. MM/SD/QM D. PP/SD/HR E. PP/SD/MM A. PP/SD/PM B. SD/HR/MM C. MM/SD/QM D. PP/SD/HR E. PP/SD/MM A. PP/SD/PM B. SD/HR/MM C. MM/SD/QM D. PP/SD/HR E. PP/SD/MM PP/SD/PM
- B.
SD/HR/MM
- C.
MM/SD/QM
- D.
PP/SD/HR
- E.
PP/SD/MM
Correct Answer
E. PP/SD/MMExplanation
The correct answer is PP/SD/MM. This combination of SAP ERP modules is most related to supply chain management. PP stands for Production Planning, which involves planning and controlling the manufacturing process. SD stands for Sales and Distribution, which involves managing customer orders and product delivery. MM stands for Materials Management, which involves managing the procurement and inventory of materials. Together, these modules cover the key aspects of supply chain management, from planning production to delivering products to customers and managing materials.Rate this question:
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- 12.
The hosting university for this course is:
- A.
UT-Dallas
- B.
LSU
- C.
USC
- D.
University of Wisconsin at Milwaukee
Correct Answer
D. University of Wisconsin at Milwaukee -
- 13.
The process of changing the performance of the software without modifying the source code is called:
- A.
Administration
- B.
Configuration
- C.
Workflow
Correct Answer
B. ConfigurationExplanation
Configuration refers to the process of changing the performance of software without modifying the source code. This involves adjusting settings, parameters, or options within the software to optimize its performance or customize its behavior. By making configuration changes, users can tailor the software to their specific needs without having to make any changes to the underlying code.Rate this question:
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- 14.
The number of tiers in the SAP ERP system are?
- A.
1
- B.
2
- C.
3
- D.
4
- E.
5
Correct Answer
C. 3Explanation
The SAP ERP system consists of three tiers. The first tier is the presentation layer, which is responsible for displaying the user interface. The second tier is the application layer, where the business logic and processing take place. The third tier is the database layer, which stores and retrieves data. These three tiers work together to provide a comprehensive and integrated ERP solution.Rate this question:
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- 15.
The 3 types of data in any SAP ERP system are:
- A.
Translational, organization, master
- B.
Organization, transaction, translational
- C.
Client, Company Code, Plant
- D.
Organization, master, transaction
Correct Answer
D. Organization, master, transactionExplanation
The correct answer is "Organization, master, transaction". In any SAP ERP system, organization data includes information about the structure and hierarchy of the company, such as departments and cost centers. Master data refers to the key business entities like customers, vendors, and products. Transaction data, on the other hand, includes the actual business transactions that occur within the system, such as sales orders, purchase orders, and financial transactions.Rate this question:
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- 16.
Which organizational level would be associated with the production and storage or valuated goods?
- A.
Client
- B.
Company Code
- C.
Plant
- D.
Storage Location
Correct Answer
C. PlantExplanation
The organizational level associated with the production and storage of valuated goods is the Plant. A plant is a physical location within a company where production activities take place, and it is responsible for storing and managing the inventory of goods. The plant level is important for tracking and controlling the movement of goods within the company's operations.Rate this question:
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- 17.
A material master code that will determine which departments may view and modify the data is the:
- A.
Industry Sector
- B.
Plant Sector
- C.
Configuration file
- D.
Material Type
Correct Answer
D. Material TypeExplanation
The material type is the correct answer because it is a code that determines the characteristics and behavior of a material in a company's system. It categorizes materials into different types based on their attributes, such as whether they are finished products or raw materials. The material type also determines which departments within the company have access to view and modify the data related to that material type.Rate this question:
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- 18.
A material description is a example of which level of the material master hierarchy?
- A.
Client
- B.
Plant
- C.
Storage
- D.
All of the above
Correct Answer
A. ClientExplanation
A material description is an example of the highest level of the material master hierarchy, which is the client level. The material master hierarchy is a structure that organizes and categorizes materials within an organization's system. At the client level, material descriptions are maintained and managed across all plants and storage locations within the organization.Rate this question:
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- 19.
The standard procurement type code used for buying from outside suppliers is?
- A.
E
- B.
F
- C.
X
- D.
S
- E.
SU
Correct Answer
B. FExplanation
The correct answer is F. The letter F is the standard procurement type code used for buying from outside suppliers. This code is commonly used in procurement processes to indicate that the purchase is being made from an external supplier rather than from within the organization. Other letters listed (E, X, S, SU) do not represent the standard procurement type code for buying from outside suppliers.Rate this question:
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- 20.
A material that is built in more than one plant may share a common material master.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A material that is built in more than one plant may not necessarily share a common material master. Each plant may have its own unique material master that contains specific details and attributes for the material. This allows for customization and flexibility in managing materials across different plants. Therefore, the statement is false.Rate this question:
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- 21.
The BOM master is integrated with the Sales Order Entry system.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "The BOM master is integrated with the Sales Order Entry system" is true. This means that the Bill of Materials (BOM) master, which contains information about the components and quantities required to manufacture a product, is connected or linked to the Sales Order Entry system. This integration allows for seamless communication and coordination between the two systems, ensuring accurate and efficient order processing and production planning.Rate this question:
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- 22.
Which of the following is not a valid level of the BOM master?
- A.
Header
- B.
Item
- C.
Client
- D.
Sub-Item
- E.
One of the above
Correct Answer
C. ClientExplanation
The question is asking for a level that is not valid in the BOM master. The BOM master is a system used in manufacturing to manage the Bill of Materials, which includes information about the components and materials needed to produce a product. In this context, the levels typically include Header, Item, and Sub-Item. However, "Client" is not a valid level in the BOM master, as it does not represent a hierarchical relationship within the bill of materials.Rate this question:
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- 23.
Name the 4 key organizational levels relevant to SCM are:
- A.
Client, Company Code, Sales Organization, Division
- B.
Company Code, Plant, Sales Organization, Division
- C.
Company Code, Sale Organization, Division, Storage Location
- D.
Client, Company Code, Plant, Storage Location
Correct Answer
D. Client, Company Code, Plant, Storage LocationExplanation
The correct answer is Client, Company Code, Plant, Storage Location. In supply chain management (SCM), these four organizational levels are crucial for effective coordination and control. The client level represents the customer or end-user of the products or services. The company code level represents a legal entity within the organization. The plant level represents physical locations where production or distribution activities take place. And finally, the storage location level represents specific areas within a plant where materials are stored. By considering these four levels, companies can efficiently manage their supply chain operations and ensure seamless flow of goods and services.Rate this question:
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- 24.
A Bill of Material will include the following for each component EXCEPT:
- A.
Material Number
- B.
Material Supplier
- C.
Usage quantity
- D.
Unit of measure
Correct Answer
B. Material SupplierExplanation
A Bill of Material is a comprehensive list that includes all the necessary information about each component required to manufacture a product. It typically includes the material number, usage quantity, and unit of measure for each component. However, the material supplier is not typically included in a Bill of Material as it is not directly related to the manufacturing process but rather to the sourcing and procurement of materials.Rate this question:
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- 25.
List the three two BOM technical types.
- A.
Simple, Complex, Variant
- B.
Simple, Alternative, Variant
- C.
Alternative, Variant, Conditional
- D.
Simple, Alternative, Conditional
Correct Answer
B. Simple, Alternative, VariantExplanation
The correct answer is Simple, Alternative, Variant. These three types are commonly used in Bill of Materials (BOM) management. A simple BOM is a basic list of components required for a product. An alternative BOM provides alternative options for certain components. A variant BOM is used when there are multiple versions or variations of a product, with different components or configurations.Rate this question:
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- 26.
For a given plant, two different sets of component materials may be used to create the same material. In this case you would construct:
- A.
A simple BOM
- B.
An alternative BOM
- C.
A Variant BO
Correct Answer
B. An alternative BOMExplanation
An alternative BOM would be constructed in this case because it allows for different sets of component materials to be used to create the same material. This means that there are multiple options available for creating the desired material, and the alternative BOM would outline these different options.Rate this question:
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- 27.
From the information in question 6, the BOMs constructed will have:
- A.
The same internal BOM number
- B.
Different internal BOM numbers
Correct Answer
A. The same internal BOM numberExplanation
Based on the information provided in question 6, it can be inferred that the BOMs constructed will have the same internal BOM number. This means that all the BOMs created will be assigned the same identification number internally, indicating that they are related to the same product or assembly. This allows for easier tracking and management of the BOMs within the system.Rate this question:
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- 28.
Name at least 3 types of purchasing master data in SAP ERP system:
- A.
Vendor master, material master, client
- B.
Vendor master, purchasing info record, Bill of Material
- C.
Vendor master, company code, purchasing info record
- D.
Vendor master, purchasing info record, scheduling agreement.
Correct Answer
D. Vendor master, purchasing info record, scheduling agreement.Explanation
The correct answer is Vendor master, purchasing info record, scheduling agreement. These are three types of purchasing master data in the SAP ERP system. The vendor master contains information about vendors and their contact details. The purchasing info record stores information about the purchasing conditions for a specific material from a particular vendor. The scheduling agreement is a long-term agreement between a vendor and a customer that defines the terms and conditions for the delivery of goods or services. These three types of master data are essential for managing the procurement process in SAP ERP.Rate this question:
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- 29.
The vendor master is integrated to the SAP financial accounting modules.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because the vendor master data is an essential component in the SAP financial accounting modules. It contains important information about vendors such as their contact details, payment terms, and bank account information. This data is used for various financial processes like accounts payable, purchasing, and financial reporting. Integrating the vendor master with the financial accounting modules ensures that accurate and up-to-date information is available for these processes, improving efficiency and accuracy in financial operations.Rate this question:
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- 30.
Which master data object below does not require a purchase order to be created.
- A.
Purchasing information record
- B.
Contracts
- C.
Scheduling agreements
- D.
Quota arrangements
Correct Answer
C. Scheduling agreementsExplanation
Scheduling agreements do not require a purchase order to be created. Scheduling agreements are long-term agreements between a buyer and a seller, where the buyer agrees to purchase a certain quantity of goods or services over a specified period of time. Unlike purchase orders, which are created for individual purchases, scheduling agreements outline the terms and conditions for multiple purchases over an extended period. This allows for greater flexibility and simplifies the purchasing process, as a purchase order is not required each time a purchase is made under a scheduling agreement.Rate this question:
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- 31.
What purchasing object below is an official document sent from a company to a supplier:
- A.
Purchase requisition
- B.
Purchase order
- C.
Planned order
- D.
None of the above
Correct Answer
B. Purchase orderExplanation
A purchase order is an official document that is sent from a company to a supplier. It is used to request goods or services and serves as a legally binding agreement between the buyer and the seller. The purchase order outlines the details of the purchase, such as the quantity, price, delivery date, and terms of payment. It helps to ensure that the buyer receives the correct items and that the supplier is aware of the buyer's requirements.Rate this question:
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- 32.
Purchase requisitions may be manually created.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Purchase requisitions can be manually created by individuals within an organization. This means that employees can fill out a form or document to request the purchase of goods or services. This manual process allows for flexibility and customization in the requisition process, as it can be tailored to the specific needs and requirements of the organization. Additionally, manual creation of purchase requisitions may be necessary in situations where automated systems are not available or feasible.Rate this question:
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- 33.
A valid work center in SAP may consist of:
- A.
People (employees)
- B.
Machines
- C.
Production Lines
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A valid work center in SAP may consist of people (employees), machines, and production lines. This means that a work center can include human resources, equipment, and the necessary infrastructure for production. All of these components contribute to the functioning and productivity of the work center within the SAP system.Rate this question:
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- 34.
A setup time activity on a work center will be defined by its:
- A.
Utlization rate
- B.
Efficiency rate
- C.
Standard setup key
- D.
Standard value key
- E.
Standard work center key
Correct Answer
D. Standard value keyExplanation
The setup time activity on a work center is defined by its standard value key. The standard value key represents the predetermined time required to complete the setup activity on the work center. It is a measure of the time it should take to set up the work center for a specific task or operation. The standard value key helps in planning and scheduling the setup activities efficiently, ensuring that the work center is ready for production in a timely manner.Rate this question:
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- 35.
Which field in the work center will define the control elements for an operation performed at that work center?
- A.
Standard value key
- B.
Standard machine key
- C.
Formula fields
- D.
Control key
- E.
Work center key
Correct Answer
D. Control keyExplanation
The control key in the work center will define the control elements for an operation performed at that work center. The control key determines the scheduling parameters, such as the order type, capacity requirements, and the calculation of the operation duration. It also determines the control indicators for the operation, such as whether it is a milestone operation or a confirmation required operation. Therefore, the control key plays a crucial role in defining the control elements and parameters for operations at a work center.Rate this question:
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- 36.
The valid capacity categories that may be defined for a work center include:
- A.
Material, storage, labor
- B.
Energy, material, machinery
- C.
Storage, labor, machinery
- D.
Transportation, material handling, labor
Correct Answer
C. Storage, labor, machineryExplanation
The valid capacity categories that may be defined for a work center include storage, labor, and machinery. These categories represent the different aspects of capacity that need to be considered when planning and managing a work center. Storage capacity refers to the amount of space available to store materials or finished products. Labor capacity refers to the number of workers or hours of work available to perform tasks. Machinery capacity refers to the capability of the equipment or machines used in the work center. By defining these categories, it becomes easier to allocate and manage resources effectively.Rate this question:
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- 37.
Factory calendars are what type of SAP data:
- A.
Organizational
- B.
Master Data
- C.
Transaction data
Correct Answer
A. OrganizationalExplanation
Factory calendars are a type of organizational data in SAP. Organizational data in SAP represents the structure and hierarchy of an organization, including its various units and their relationships. Factory calendars specifically define the working days and non-working days for a factory or plant. This information is used in various SAP modules for planning and scheduling purposes, such as production planning, maintenance planning, and resource allocation. Therefore, factory calendars are considered organizational data in SAP.Rate this question:
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- 38.
All factory calendars will contain the same public holidays.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
This statement is false because factory calendars can vary depending on the location and industry of the factory. Public holidays can differ from country to country and even within different regions of the same country. Therefore, it is not accurate to say that all factory calendars will contain the same public holidays.Rate this question:
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- 39.
The task list that is most often used in a job shop production environment is a:
- A.
Rate route
- B.
Standard route
- C.
Mater recipe
- D.
Reference routing
- E.
Inspection plan
Correct Answer
B. Standard routeExplanation
In a job shop production environment, the most commonly used task list is a standard route. A standard route outlines the sequence of operations and processes required to manufacture a product. It includes information such as the order of tasks, the resources and equipment needed, and the estimated time for each operation. This helps ensure consistency and efficiency in the production process, as well as providing a baseline for cost estimation and scheduling.Rate this question:
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- 40.
A task list is a series of steps or process flow that will complete a task.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A task list is a set of instructions or a sequence of steps that need to be followed in order to complete a task. It provides a structured approach and helps to ensure that all necessary steps are taken and nothing is overlooked. By following a task list, individuals can effectively manage their time and resources, and increase their productivity. Therefore, the statement that a task list is a series of steps or process flow that will complete a task is true.Rate this question:
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- 41.
A routing may have no more than 10 operations.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A routing may have more than 10 operations.Rate this question:
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- 42.
Routings are integrated into which other SAP module:
- A.
Financials (costing)
- B.
Capacity planning
- C.
Demand Management
- D.
A and B
- E.
B and D
Correct Answer
D. A and BExplanation
Routings are integrated into the Financials (costing) module and the Capacity planning module in SAP. This means that the routing information, which includes the sequence of operations and work centers required to produce a product, is used in both these modules for costing purposes and capacity planning.Rate this question:
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- 43.
A routing group number is assigned
- A.
Through the material master
- B.
Through the BOM master
- C.
By the user
- D.
By SAP
Correct Answer
D. By SAPExplanation
The routing group number is assigned by SAP. This means that SAP, the software system, is responsible for assigning the routing group number. It is not assigned through the material master, BOM master, or by the user.Rate this question:
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- 44.
A routing has a one-to-one relationship with a specific material. That is, each material must have its own unique routing:
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because a routing does not have a one-to-one relationship with a specific material. In fact, multiple materials can share the same routing, especially if they have similar manufacturing processes. This allows for efficiency in production planning and resource allocation.Rate this question:
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- 45.
A tool that may significantly reduce the time-to-market for a new product is:
- A.
Quality Function Deployment
- B.
Deterrant Engineering
- C.
Concurrent Engineering
- D.
SAP Engineering
Correct Answer
C. Concurrent EngineeringExplanation
Concurrent Engineering is a tool that can significantly reduce the time-to-market for a new product. It involves the simultaneous and collaborative involvement of various teams, such as design, manufacturing, marketing, and supply chain, throughout the product development process. By involving all relevant parties from the beginning, potential issues can be identified and resolved early on, leading to faster product development and reduced time-to-market. This approach allows for better coordination and communication between teams, leading to improved efficiency and ultimately faster product launches.Rate this question:
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- 46.
A job shop production process is characterized by high volume, high variety, flexible equipment and intermittent production.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A job shop production process is characterized by low volume, high variety, flexible equipment, and intermittent production. Unlike high volume production processes, job shops typically handle small batch sizes and produce customized products or services. The use of flexible equipment allows for the efficient production of a wide range of products with varying specifications. The intermittent production refers to the irregular flow of work through the production process, as each job may have different requirements and processing times. Therefore, the statement "A job shop production process is characterized by high volume, high variety, flexible equipment, and intermittent production" is incorrect.Rate this question:
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- 47.
The two major master data objects created in the Production Definition Process are?
- A.
Material Master and Work Center
- B.
Material Master and Bill of Material Master
- C.
Work Center and Purchasing Info Record
- D.
Work Center and Routing
- E.
None of the above
Correct Answer
D. Work Center and RoutingExplanation
In the Production Definition Process, two major master data objects that are created are Work Center and Routing. A Work Center represents a location where production operations are carried out, and it includes information such as the resources, capacities, and scheduling data. Routing, on the other hand, defines the sequence of operations and the associated work centers required to produce a product. Therefore, both Work Center and Routing are crucial master data objects in the Production Definition Process.Rate this question:
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- 48.
The Quality Function Deployment Tool is also known as The House of Quality:
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Quality Function Deployment Tool is also known as The House of Quality because it is a diagram that resembles a house and is used to capture and organize customer requirements and translate them into specific design goals. The House of Quality provides a visual representation of the relationship between customer needs and the technical features of a product, helping to prioritize design decisions and ensure that customer requirements are met. This tool is widely used in the field of quality management and product development.Rate this question:
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- 49.
The two major master data objects created in the Product Definition Process are?
- A.
Material Master and Scheduling Agreement
- B.
Material Master and Bill of Material Master
- C.
Bill of Material Master and Purchasing Info Record
- D.
Vendor Master and Purchasing Info Record
- E.
None of the above
Correct Answer
B. Material Master and Bill of Material MasterExplanation
In the Product Definition Process, two major master data objects that are created are Material Master and Bill of Material Master. The Material Master contains information about a specific material, such as its description, classification, and other relevant data. The Bill of Material Master, on the other hand, contains information about the components and quantities required to produce a finished product. These two master data objects are crucial in defining and managing the product structure and components within an organization.Rate this question:
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- 50.
In Transition Planning a company may employ the following strategies EXCEPT:
- A.
Price discounts
- B.
Promotions
- C.
Ramping down current production
- D.
False advertising
- E.
Salvage sales to consolidators
Correct Answer
D. False advertisingExplanation
In transition planning, a company may employ various strategies to manage the change smoothly. These strategies include price discounts, promotions, ramping down current production, and salvage sales to consolidators. However, false advertising is not a valid strategy in transition planning as it involves deceptive practices and can harm the company's reputation. False advertising is unethical and can lead to legal consequences, so it should not be considered as a valid strategy in transition planning.Rate this question:
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Current Version
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Mar 20, 2023Quiz Edited by
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Oct 01, 2015Quiz Created by
Arif209
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