Enterprise Resource Planning
Question Bank
Course Introduction
Enterprise Resource Planning (ERP) is a comprehensive course designed to introduce students to the concepts, architecture, and operation of integrated business management systems. The course explores how ERP software streamlines and automates core business processes such as finance, human resources, supply chain management, and customer relationship management within an organization. Emphasis is placed on the strategic value of ERP solutions, the process of selecting and implementing ERP systems, and the challenges of data integration and change management. Through case studies and hands-on experience with ERP platforms, students learn to analyze business requirements, map business processes, and leverage ERP tools for improved organizational performance and decision-making.
Recommended Textbook
Operations and Supply Chain Management 15th Edition by F. Robert Jacobs
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1573 Verified Questions
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Page 2
Chapter 1: Introduction
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Sample Questions
Q1) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering."
A)True
B)False
Answer: True
Q2) Service science management and engineering aims to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations.
A)True
B)False Answer: True
Q3) Service innovations can be patented.
A)True
B)False
Answer: False
Q4) A worker can be efficient without being effective.
A)True
B)False Answer: True
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Chapter 2: Strategy
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Sample Questions
Q1) Sustainability means meeting a firm's current needs without excessively compromising the ability of future generations to meet their own needs.
A)True
B)False
Answer: False
Q2) Which of the following is a total measure of productivity?
A)Output/Materials
B)Output/(Labor + Capital + Energy)
C)Output/Labor
D)Output/Inputs
E)All of these
Answer: D
Q3) Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society.
A)True
B)False
Answer: True
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4
Chapter 4: Project Management
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Sample Questions
Q1) For an activity in a CPM analysis, the early start time is 8 and the late start time is 10.Which of the following statements is true?
A)The late finish is 12.
B)The early finish is 10.
C)The slack for this activity is 2.
D)The duration of this activity is 2.
E)The activity is on the critical path.
Answer: C
Q2) The second step in managing a project is writing the statement of work.
A)True
B)False
Answer: False
Q3) In a CPM analysis, if you subtract the late finish from the early finish, the result is the activity's slack time.
A)True
B)False
Answer: False
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Page 5
Chapter 3: Design of Products and Services
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Sample Questions
Q1) Incorporation of environmental considerations in the design and development of products or services is called ecodesign.
A)True
B)False
Q2) The main purpose of concurrent engineering is to improve product quality.
A)True
B)False
Q3) A competency is not core if it is easy for competitors to imitate.
A)True
B)False
Q4) The aim of quality function deployment (QFD) is:
A)To facilitate house of quality analysis
B)To provide value analysis/value engineering input
C)To integrate design for manufacturing and assembly (DFMA)
D)To facilitate better cooperation between business functions
E)To get the voice of the customer into the design of a product
Q5) Most purchasers of electronic products cannot fully operate them and use only a small number of the available features.
A)True
B)False
6
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Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) Outsourcing is a common source of external capacity.
A)True
B)False
Q2) Which of the following is not a step used in determining production capacity requirements?
A)Forecasting to predict product sales
B)Forecasting raw material usage
C)Projecting availability of labor
D)Calculating equipment and labor needs
E)Projecting equipment availability
Q3) Long-range capacity planning requires top management participation.
A)True
B)False
Q4) In practice, achieving a perfectly balanced plant is usually desirable but impossible.
A)True
B)False
Q5) Sharing capacity is a common source of external capacity.
A)True
B)False
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Chapter 6: Learning Curves
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Sample Questions
Q1) You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product.You find a company can produce a product the first time at a cost of $5,000.If their 90 percent learning curve allows them to reduce their costs on each unit, what is the total cost of producing 100 units of the new product?
A)$500,000
B)$390,000
C)$290,700
D)$250,687
E)$250,000
Q2) An assumption of learning curve theory is which of the following?
A)The reduction in unit time will follow a predictable pattern.
B)Unit time will decrease at an increasing rate.
C)The time required to do a task will vary randomly each time the task is repeated.
D)Learning will not be transferred from one worker to the next.
E)Organizational learning is not included in learning theory.
Q3) When plotted on a graph, the learning curve can't be expressed as logarithm.
A)True
B)False
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Page 8
Chapter 7: Manufacturing Processes
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Sample Questions
Q1) The term "assembly line" refers to progressive assembly linked by some material handling device.
A)True
B)False
Q2) A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components.
A)True
B)False
Q3) An example of an assemble-to-order firm is Dell Computer.
A)True
B)False
Q4) Break-even analysis can be used to help decide whether to perform a task with a special-purpose machine or with a general-purpose machine.
A)True
B)False
Q5) Assemble-to-order means moving the customer order decoupling point from finished goods to components.
A)True
B)False
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Chapter 8: Facility Layout
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Sample Questions
Q1) Work station cycle time in an assembly line balancing problem, (choose the most appropriate answer from the choices below)?
A)will decrease as the required production per day increases, other things remaining the same.
B)will increase as the required production per day increases, other things remaining the same.
C)will decrease as the production time per day increases, other things remaining the same.
D)will increase as the production time per day increases, other things remaining the same.
E)A and D
Q2) The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line.
A)True
B)False
Q3) In designing a production line, a mixed-model line layout is used by JIT manufacturers.
A)True
B)False
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Page 10
Chapter 9: Service Processes
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Sample Questions
Q1) Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?
A)The process and product must be developed at the same time.
B)Many service organizations can change their service offerings virtually overnight.
C)Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization.
D)The service package, rather than a definable good, is the output of the development process.
E)Service operations can be protected by patents; manufacturing operations cannot.
Q2) The customer is (or should be) the second most important focal point of all decisions in a service organization.
A)True
B)False
Q3) Poka-yoke is roughly translated from Japanese as "quality management."
A)True
B)False
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11
Chapter 10: Waiting Line Analysis and Simulation
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Sample Questions
Q1) Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and service (unloading using a single bay) following exponential distribution with a rate of 48 trucks per day, answer the following question.What is the expected waiting time in the system (in hours) for a typical truck?
A)2 hours
B)1 hour
C)1.5 hour
D)0.25 hour
E)0.5 hours
Q2) In a practical sense, a finite population is one that potentially would form a very long line in relation to the capacity of the serving system.
A)True
B)False
Q3) The Poisson probability distribution is used in waiting line management when one is interested in the number of arrivals to a queue during some fixed time period.
A)True
B)False
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12
Chapter 11: Process Design and Analysis
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Sample Questions
Q1) According to Little's law, which of the following can be used to estimate inventory?
A)Process time/Cycle time
B)Throughput rate × Flow time
C)Process velocity/Flow time
D)Set up time/Throughput rate
E)Value-added time/Process velocity
Q2) When a make-to-order production process is used, production is based on forecasts.
A)True
B)False
Q3) To reduce process flow time, you might try which of the following actions?
A)Perform activities in parallel.
B)Change the sequence of activities.
C)Reduce interruptions.
D)Acquire additional equipment.
E)All of these
Q4) A bottleneck occurs when a stage in a production process is starving.
A)True
B)False
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Chapter 12: Six Sigma Quality
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Sample Questions
Q1) A quality guru named Philip Crosby suggested that a general approach to quality management should involve prevention, not inspection.
A)True
B)False
Q2) Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
A)Appraisal costs
B)Prevention costs
C)External failure costs
D)Internal failure costs
E)Rework and wastage
Q3) An opportunity flow diagram is used to separate the value-added from the non-value-added steps in a process.
A)True
B)False
Q4) ISO 9000 is primarily concerned with environmental management.
A)True
B)False
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Page 14
Chapter 13: Statistical Quality Control
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Sample Questions
Q1) You are going to develop an X-bar chart based on range statistics, and you are using a sample size of 12 for your charting purposes.Which of the following is the A<sub>2</sub> factor for the X-bar chart?
A)0.37
B)0.31
Q2) One hundred percent inspection is justified when the cost of inspection is low.
A)True
B)False
Q3) Attributes are those quality characteristics that are classified as either conforming or not conforming to specification.
A)True
B)False
Q4) It is impossible to have zero variability in production processes.
A)True
B)False
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Chapter 14: Lean Supply Chains
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Sample Questions
Q1) One of the many lean techniques that have been successfully applied in service firms is the upgrading of housekeeping.
A)True
B)False
Q2) A kaizen burst is a symbol on a value stream map.
A)True
B)False
Q3) A kanban control system uses a signaling device to regulate JIT flows.
A)True
B)False
Q4) Henry Ford used JIT concepts as he streamlined his moving assembly lines to make automobiles in the early 1900s.
A)True
B)False
Q5) Lean production is a management philosophy and a pull system throughout the plant.
A)True B)False
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Chapter 15: Logistics Distribution, and Transportation
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Sample Questions
Q1) The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.
A)True
B)False
Q2) In facility location decision making, the factor-rating system is one of the least used general location techniques.
A)True
B)False
Q3) A company wants to determine where it should locate a new warehouse.It has two existing production plants and will have a volume of shipping of 150 units a day.Using the centroid method, which of the following are the X and Y coordinates for the new plant location?
A)(81, 117)
B)(88, 138)
C)(117, 102)
D)(76, 123)
E)X and Y coordinates cannot be computed from the data given.
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Chapter 16: Global Sourcing and Procurement
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Sample Questions
Q1) Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.
A)True
B)False
Q2) The optimal strategy for functional products is to use a responsive supply chain.
A)True
B)False
Q3) In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?
A)Efficient
B)Forward looking
C)Agile
D)Risk hedging
E)Responsive
Q4) Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners.
A)True
B)False
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Chapter 17: Enterprise Resource Planning Systems
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Sample Questions
Q1) What is the name of Microsoft's version of ERP?
A)Dynamics
B)Manugistics
C)Oracle
D)i2
Q2) 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.
Q3) What will the change in the value of cash-to-cash cycle if , AR<sub>d</sub> is reduced by 4 days and I<sub>d</sub> 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
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19
Chapter 18: Forecasting
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Sample Questions
Q1) A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations.
A)True
B)False
Q2) Which of the following forecasting methodologies is considered a qualitative forecasting technique?
A)Simple moving average
B)Market research
C)Linear regression
D)Exponential smoothing
E)Multiple regression
Q3) In time series data depicting demand, which of the following is not considered a component of demand variation?
A)Trend
B)Seasonal
C)Cyclical
D)Variance
E)Autocorrelation
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Chapter 19: Sales and Operations Planning
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Q1) The objective of the aggregate operations plan is to ensure that the marketing and sales plans are realistic.
A)True
B)False
Q2) Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
A)True
B)False
Q3) Which of the following is not one of the "number of interesting issues that arise in yield management?"
A)Pricing structures that must appear logical to the customer and justify different prices
B)Designing yield management programs that cannot be imitated by a competitor
C)How to handle variability in customer arrivals, duration, and interval
D)Managing the service process
E)Training workers and managers to work in a yield management environment
Q4) The sales and operations planning process consists of a series of meetings.
A)True
B)False
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21
Chapter 20: Inventory Management
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Sample Questions
Q1) The standard fixed-time-period model assumes that inventory is never counted but determined by EOQ measures.
A)True
B)False
Q2) One of the daily, delicate balancing acts that logistics managers have to perform involves the trade-off between customer satisfaction and cost to serve.
A)True B)False
Q3) Using the probability approach, we assume that the demand over a period of time is normally distributed.
A)True
B)False
Q4) One of the daily, delicate balancing acts that logistics managers have to perform involves the trade-off between inventory costs and the cost of stock-outs.
A)True B)False
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Page 22
Chapter 21: Material Requirements Planning
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Sample Questions
Q1) A master production schedule is an input to a material requirements planning (MRP) system.
A)True
B)False
Q2) Which of the following industry types have high expected benefits from the application of MRP?
A)Fabricate-to-order
B)Hospitals
C)Assemble-to-order
D)Aircraft manufacturers
E)Oil refineries
Q3) If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?
A)350
B)247
C)23
D)185
E)78
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Chapter 22: Workcenter Scheduling
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Sample Questions
Q1) One of the principles of work center scheduling is to match work center input information to what the worker can actually do.
A)True
B)False
Q2) Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a production schedule.The remaining operating time necessary for completion of job A is 3 days (i.e., job A will take 3 more days to complete), B will take 9 days, C will take 6 days, D will take 5 days and E will take 8 days.In what order will these jobs be scheduled if using the SOT priority rule for job sequencing?
A)A-B-D-E-C
B)A-D-C-E-B
C)D-C-A-B-E
D)B-E-C-D-A
E)E-D-A-B-C
Q3) Under the STR/OP sequencing priority rule, orders with the jobs with the longest STR/OP are run first.
A)True
B)False
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Page 24
Chapter 23: Theory of Constraints
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Sample Questions
Q1) Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.
A)True
B)False
Q2) JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.
A)True
B)False
Q3) Because of statistical fluctuation (processing times vary around an average processing time), dependent sequences can operate without any inventory between workstations.
A)True B)False
Q4) According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.
A)True
B)False
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Chapter 24: Health Care
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Sample Questions
Q1) Among the major trends in health care that relate to OSCM are electronic medical records.
A)True
B)False
Q2) In a hospital, a nursing station is a place where admitted patients go to receive nursing care.
A)True
B)False
Q3) Among the major trends in health care that relate to OSCM is telemedicine (remote diagnosis).
A)True
B)False
Q4) Which of the following is an essential resource that flows through a hospital supply chain?
A)Doctors and nurses
B)Information
C)Medicine
D)Patients
E)X-rays
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Chapter 25: Operations Consulting
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Q1) One of the implementation tools from the operations consulting tool kit is the issue tree.
A)True
B)False
Q2) A responsibility chart is used in operations consulting in planning the task responsibilities for a project.
A)True
B)False
Q3) Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit?
A)Decision trees
B)Gap analysis
C)Work sampling
D)Statistical tools
E)Customer surveys
Q4) A key use of a customer survey used in the operations consulting phase of problem definition is customer loyalty analysis.
A)True
B)False
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