ERP Management 4 — Questions and Answers
Question 1: Which ERP management practice uses statistical models to predict future inventory needs based on historical sales data?
- Kanban replenishment
- Statistical forecasting (Correct answer)
- Manual reorder point review
- Vendor-managed inventory
Correct answer: Statistical forecasting
Statistical forecasting applies algorithms like moving averages or exponential smoothing to historical data to generate demand predictions in ERP.
Question 2: What is the primary purpose of 'role-based access control' (RBAC) in ERP management?
- Improving system performance by limiting database queries
- Ensuring users can only access functions and data relevant to their job role (Correct answer)
- Automating approval workflows for purchase orders
- Tracking which users made changes to transactions
Correct answer: Ensuring users can only access functions and data relevant to their job role
RBAC restricts ERP access based on job function to enforce segregation of duties, protect sensitive data, and maintain compliance.
Question 3: In ERP warehouse management, what does 'putaway strategy' refer to?
- The method for packing outbound shipments
- Rules that determine where received goods are stored in the warehouse (Correct answer)
- The process of archiving old inventory records
- Scheduling dock appointments for inbound trucks
Correct answer: Rules that determine where received goods are stored in the warehouse
A putaway strategy directs the ERP to assign specific warehouse locations to incoming goods based on rules like product type, velocity, or zone.
Question 4: Which ERP management concept involves sharing inventory risk between a supplier and retailer where the supplier owns goods until sold?
- Drop shipping
- Consignment inventory (Correct answer)
- Cross-docking
- Safety stock management
Correct answer: Consignment inventory
In consignment inventory, the supplier retains ownership until the retailer sells the item, reducing the retailer's capital at risk.
Question 5: What is 'management by exception' in the context of ERP reporting?
- Manually reviewing all transactions above a threshold
- Focusing management attention only on metrics that deviate significantly from targets (Correct answer)
- Exempting certain departments from standard ERP workflows
- Running exception reports to exclude outlier data from analysis
Correct answer: Focusing management attention only on metrics that deviate significantly from targets
Management by exception uses ERP dashboards and alerts to surface only the variances that require human attention, reducing information overload.
Question 6: In ERP human capital management, what is the 'span of control'?
- The range of ERP modules an HR manager can configure
- The number of direct reports a manager is responsible for supervising (Correct answer)
- The geographic regions covered by an HR business partner
- The timeframe within which performance reviews must be completed
Correct answer: The number of direct reports a manager is responsible for supervising
Span of control defines how many employees report to a single manager, influencing organizational hierarchy setup in ERP HCM modules.
Question 7: Which ERP management method evaluates supplier performance using criteria such as quality, delivery, cost, and service?
- Supplier scorecard (Correct answer)
- Vendor catalog review
- Purchase order audit
- RFQ comparison matrix
Correct answer: Supplier scorecard
A supplier scorecard aggregates KPIs across multiple performance dimensions to objectively rate and compare vendors over time.
ERP Management 4
Which ERP management practice uses statistical models to predict future inventory needs based on historical sales data?