ERP Business Processes 5

Question 1

In ERP systems, 'cross-docking' as a business process means:

Accepted Answer

Moving incoming goods directly from receiving to shipping without storing them in a warehouse

Answer

Cross-docking is a logistics process where goods received from a supplier are immediately transferred to outbound shipments without warehousing.

Question 2

A company uses ERP to track actual costs against planned costs for a production order. This comparison is called:

Accepted Answer

Variance analysis

Answer

Variance analysis in production compares planned (standard) costs to actual costs incurred, identifying inefficiencies or savings.

Question 3

Which ERP functionality allows a sales representative to check whether requested goods can be delivered by a promised date?

Accepted Answer

Available-to-Promise (ATP) check

Answer

ATP checks real-time inventory, open orders, and planned receipts to confirm if a quantity can be committed for a specific delivery date.

Question 4

In ERP business process management, 'exception handling' refers to:

Accepted Answer

Defining how the system responds when a process step falls outside normal parameters

Answer

Exception handling in ERP defines automated or manual workflows triggered when business rules or thresholds are breached.

Question 5

What is the role of 'intercompany processes' in a multi-entity ERP environment?

Accepted Answer

Managing transactions between different legal entities within the same corporate group

Answer

Intercompany processes handle buying and selling transactions between subsidiaries of the same parent company within the ERP, ensuring both sides are accurately recorded.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Business Processes 5