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Enterprise Resource Planning (ERP) Systems in Supply Chain MCQs
- What is the primary purpose of an Enterprise Resource Planning (ERP) system?
- a) To handle marketing campaigns
- b) To integrate various business processes and improve efficiency
- c) To manage social media accounts
- d) To increase product prices
- Answer: b) To integrate various business processes and improve efficiency
- Which of the following is a key feature of ERP systems in supply chain management?
- a) Disjointed data management
- b) Real-time data processing and reporting
- c) Limited scalability
- d) Inconsistent data entry
- Answer: b) Real-time data processing and reporting
- What is one of the main benefits of using an ERP system in supply chain management?
- a) Increased operational costs
- b) Improved collaboration and information sharing
- c) Reduced data security
- d) Decreased customer satisfaction
- Answer: b) Improved collaboration and information sharing
- Which module in an ERP system is specifically used for managing the supply chain?
- a) Human Resource Management (HRM)
- b) Customer Relationship Management (CRM)
- c) Supply Chain Management (SCM)
- d) Financial Management
- Answer: c) Supply Chain Management (SCM)
- How does an ERP system help in inventory management within the supply chain?
- a) By increasing manual inventory checks
- b) By providing real-time inventory levels and automated replenishment
- c) By reducing data accuracy
- d) By ignoring stock levels
- Answer: b) By providing real-time inventory levels and automated replenishment
- Which of the following is NOT a typical function of an ERP system in supply chain management?
- a) Demand forecasting
- b) Order processing
- c) Product design
- d) Supplier relationship management
- Answer: c) Product design
- What is the role of ERP systems in order fulfillment?
- a) To decrease order accuracy
- b) To streamline the process from order receipt to delivery
- c) To complicate the order tracking process
- d) To increase order processing time
- Answer: b) To streamline the process from order receipt to delivery
- Which ERP module assists in financial tracking and reporting within the supply chain?
- a) Sales and Distribution (SD)
- b) Financial Accounting (FI)
- c) Material Management (MM)
- d) Production Planning (PP)
- Answer: b) Financial Accounting (FI)
- How does an ERP system improve supplier management?
- a) By decreasing communication with suppliers
- b) By providing a centralized platform for managing supplier information and transactions
- c) By reducing the visibility of supplier performance
- d) By increasing the complexity of supplier contracts
- Answer: b) By providing a centralized platform for managing supplier information and transactions
- Which of the following is a common challenge when implementing an ERP system in supply chain management?
- a) Enhanced data security
- b) High initial implementation costs and time
- c) Increased employee productivity
- d) Improved customer satisfaction
- Answer: b) High initial implementation costs and time
- What is the benefit of integrating an ERP system with other supply chain technologies like RFID and IoT?
- a) It decreases system interoperability
- b) It provides comprehensive data insights and enhances decision-making
- c) It limits the use of real-time data
- d) It increases the complexity of data collection
- Answer: b) It provides comprehensive data insights and enhances decision-making
- How do ERP systems support compliance and regulatory requirements in supply chain management?
- a) By ignoring regulatory standards
- b) By automatically tracking and reporting compliance-related data
- c) By reducing documentation accuracy
- d) By increasing the risk of non-compliance
- Answer: b) By automatically tracking and reporting compliance-related data
- Which of the following best describes a benefit of ERP systems for supply chain visibility?
- a) Limited access to supply chain data
- b) Enhanced real-time tracking of goods and materials
- c) Decreased collaboration across departments
- d) Reduced transparency in operations
- Answer: b) Enhanced real-time tracking of goods and materials
- What is the significance of a centralized database in an ERP system for supply chain management?
- a) It increases data redundancy
- b) It ensures consistent and accurate data across the organization
- c) It complicates data access
- d) It limits data sharing capabilities
- Answer: b) It ensures consistent and accurate data across the organization
- How do ERP systems assist in production planning within the supply chain?
- a) By ignoring production schedules
- b) By optimizing production schedules and resource allocation
- c) By increasing production lead times
- d) By complicating production processes
- Answer: b) By optimizing production schedules and resource allocation