Supply Chain and Inventory Management 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 Supply Chain and Inventory Management flashcards as text
What is the main purpose of a Goods Receipt (GR) transaction in an ERP supply chain module?
Answer: Record the physical arrival of goods and update inventory stock levels
A Goods Receipt transaction officially records that ordered items have physically arrived, updates inventory quantities, and triggers the three-way match process for payment.
In supply chain management, what does the term 'lead time demand' represent?
Answer: Expected quantity of demand that occurs during the supplier replenishment lead time
Lead time demand is the amount of inventory expected to be consumed between placing a replenishment order and receiving the goods.
Which ERP planning module extends MRP by incorporating capacity constraints of machines and labor?
Answer: CRP (Capacity Requirements Planning)
Capacity Requirements Planning (CRP) evaluates whether production capacity is sufficient to execute the MRP-generated planned orders within the required time windows.
A retailer uses CPFR with its top suppliers. What does the 'F' in CPFR stand for and what does it involve?
Answer: Forecasting — jointly developing a shared demand forecast
CPFR stands for Collaborative Planning, Forecasting, and Replenishment, where the forecasting component involves buyers and suppliers jointly creating a single agreed demand forecast.
Which inventory carrying cost component typically represents the largest share of total holding costs?
Answer: Capital cost (cost of money tied up in inventory)
Capital cost — the opportunity cost or financing cost of money tied up in inventory — typically accounts for the largest portion of total inventory holding costs, often 15-25% of inventory value annually.
In ERP logistics, what distinguishes a transfer order from a purchase order?
Answer: A transfer order moves inventory between internal locations; a purchase order procures from an external supplier
A transfer order (or stock transport order) moves goods between warehouses or plants within the same company, while a purchase order procures goods from an external supplier.
What is the key operational difference between a push supply chain and a pull supply chain?
Answer: Push chains produce based on forecasts; pull chains produce in response to actual customer demand
In a push supply chain, production and distribution are driven by demand forecasts, while in a pull supply chain, actual customer orders or consumption signals trigger production and replenishment.