MRP, Procurement & Inventory Modules Flashcards
7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 MRP, Procurement & Inventory Modules flashcards as text
Which MRP exception message indicates that an existing planned receipt is scheduled later than the demand it is meant to cover?
Answer: Reschedule in (expedite)
A 'reschedule in' or expedite message tells planners to move a supply order earlier to prevent a projected stockout.
What is the 'economic order quantity (EOQ)' model designed to minimize?
Answer: Combined ordering costs and holding (carrying) costs
EOQ finds the order quantity that minimizes the sum of ordering costs (fixed per order) and holding costs (variable with quantity held).
In ERP procurement, a 'source list' or 'approved vendor list' is used to:
Answer: Restrict purchasing to pre-qualified suppliers for specific materials
A source list defines which vendors are approved to supply a given material and may specify preferred or exclusive sources.
What is 'demand time fence' in MRP planning?
Answer: The near-term period in which MRP does not automatically change the master schedule to avoid disruption
Within the demand time fence, master schedule changes are frozen or restricted to prevent costly short-term disruptions to production.
Which inventory replenishment method triggers a new order when on-hand inventory falls to a predetermined level?
Answer: Continuous review (fixed reorder point) system
A continuous review system monitors inventory constantly and places an order whenever stock drops to the reorder point (ROP).
In the context of procurement, what does 'maverick buying' refer to?
Answer: Purchasing outside of approved contracts and procurement channels
Maverick buying occurs when employees purchase goods or services outside established procurement processes, undermining contract compliance and cost controls.
What is the role of a 'routing' in an ERP manufacturing module linked to MRP?
Answer: It specifies the sequence of operations, work centers, and times required to manufacture a product
A routing describes each production step, the work center where it occurs, and the setup and run times, enabling capacity planning alongside MRP.