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SAP ch 7-9 true/false

a storage location is a key organizational level associated with inventory management
true
the most relevant category of master data in inventory management is the plant
false
a goods receipt cannot be posted without a reference to an order
false
planned receipts occur when a reference document, such as a purchase order or a production order, does not exist
false
a goods issue results in the creation of appropriate material, FI and CO documents
true
a goods issue, unlike a goods receipt, can be posted without reference to an order
false
a goods issue, unlike a goods receipt, results in a decrease in inventory
true
a transfer posting always involves an actual movement of materials
false
to change a material number you need to create a change request
false
in a consignment scenario, when raw materials are consumed in the production process, the status of the materials is changed from warehouse stock to consignment
false
a stock transfer involves physically moving materials
true
one-step procedure, two-step procedure, and stock transport order are strategies for moving materials
true
a material document is created during both the one-step and two-step procedures
true
during the one-step procedure, two materials documents are created
false
moving materials between two storage locations within the same plant or different plants is known a storage location to storage location transfer
false
one-step procedure is possible only when the materials are in unrestricted use at the supplying location
false
when transferring materials between storage locations in the same plant, if quantities are valued in the same way, then no FI document is created
true
in plant to plant transfer in the two-step method, the FI document is created at the time of receipt
false
a movement of materials between two plants in different company codes is called a company code to company code transfer
true
stock transport orders with delivery include the invoice verification step
false
in stock transport orders with delivery and billing, valuation is based on the purchase price in the STO
true
inventory management keeps track of the quantity of materials in storage location, but it cannot determine their exact location
true
a storage location can be linked to only one warehouse
true
a storage type is a division of a storage section that is based on the characteristics of the space, materials, or activity
false
storage sections represent the physical links between IM and WM
false
shelf storage is an example of a storage type
true
lightweight materials are designated as fast moving materials
false
a picking area groups materials with the same material type
false
storage bins are the smallest unit of space in a warehouse
true
transfer requirements can be created manually as well as automatically
true
transfer orders are used to execute warehouse movements
true
transfer orders can only be created automatically
false
target quantities, destination storage type, bin, and quant are examples of line item data in a transfer order
true
transfer orders in the execute warehouse management step can be created with or without a reference document
true
one of the steps of the inventory management process related to procurement is post goods issue
false
inventory management in the production process involves a goods issue and a goods receipt
true
a stock transfer from a storage bin in one warehouse to a storage bin in another warehouse is a possible scenario under which warehouse movements can occur
false
lack of overall planning may result in excess inventory and lost sales
true
when a company transfers part of the materials in stock from one distribution center to another this scenario is known as stock out
false
material planning is one of the most complex processes within an organization
true
planned orders are requests to produce materials
true
MRP uses requirements to generate the final procurement proposals
true
storage area is one of the organizational data elements in material planning
false
product routings is one of the master data elements in material planning
true
work scheduling data are defined at the client level
false
MRP is defined at the plant level
true
MRP data are specific to each plant
true
in house production is the most common procurement type for raw materials
false
semifinished goods are typically purchased from vendors
false
MRP type specifies the production control technique used in planning
true
consumption based planning calculates the requirements for a material based on current consumption data
false
in time phased planning materials are ordered when the stock level reaches a predetermined level known as the reorder point
false
consumption based planning assumes that future consumption will follow the same patterns as current consumption
false
in a scenario when the need for brakes depends on the need to produce cars, consumption based planning will be an appropriate strategy to use
false
typically semifinished goods and raw materials have dependent requirements
true
the input to MRP is the independent requirement for the finished goods
true
MPS is a mandatory step in the planning process and is usually followed by MRP
false
period lot sizing procedures combine the requirement from multiple time periods such as days or weeks, into one lot
true
for externally procured materials, the planned delivery time and the GR processing time are used to determine procurement time
true
lot size dependent times remain the same regardless of the amount of the material being procured
false
the BOM selection method in the material master identifies the criteria the system should use to select the BOM
true
a BOM is used only in the materials planning process
false
planning with final assembly takes into consideration current sales orders
true
when using planning without final assembly components are made to order, and the finished product is made to stock
false
the strategy group defines the strategy the systems uses to determine whether a quantity of material will be available on a specific day
false
A BOM always identifies the components needed to make one unit of the finished products
false
in make to stock strategy the production of the finished foods and any needed semifinished goods is triggered by a sales order
false
consumption based planning derives dependent demand based on independent requirements and exploding the BOM
false
a product group groups products with similar planning characteristics such as similar types
true
whether SOP is required depends on the production planning strategy used for the material
true
the MRP controller is a program in the SOP process that is responsible for creating procurement proposals and monitoring material availability
false
SOP can be either flexible or standard
true
the operations plan is an outcome of SOP
true
after planning the master schedule items, MRP creates dependent requirements for the components of those items
true
MPS is generally appropriate for high value items only
True
MPS creates planned orders for the MPS items and dependent requirements for all items in the BOM
false
net requirements calculation is one of the steps in MRP
true
the lot size calculation step in MRP is used to determine whether there is a need to procure the material
false
the ERP system initially uses forward scheduling and employs backward scheduling only if forward scheduling is unsuccessful
false
a processing key is a control parameter that determines how the materials in the mRP list will be organized
false
the schedule lines control parameter applies to scheduling agreements
true
the MRP list, unlike the stock/requirements list, highlights changes to MRP elements that have occurred since MRP was executed
false
the planning result report aggregates quantities for MRP elements to make it easier to view the overall picture
true
sell from stock strategy uses inventory as a buffer between processes to decouple them of to make them less dependent on each other
true

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