ERP Management 4

Question 1

Which ERP management practice uses statistical models to predict future inventory needs based on historical sales data?

Accepted Answer

Statistical forecasting

Answer

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?

Accepted Answer

Ensuring users can only access functions and data relevant to their job role

Answer

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?

Accepted Answer

Rules that determine where received goods are stored in the warehouse

Answer

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?

Accepted Answer

Consignment inventory

Answer

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?

Accepted Answer

Focusing management attention only on metrics that deviate significantly from targets

Answer

Management by exception uses ERP dashboards and alerts to surface only the variances that require human attention, reducing information overload.

ERP - Management Practice Test