6. Which of the following best describes the chronological and logical relations

Question

6.         Which of the following best describes the chronological and logical relationships ob business transactions from raw material supplies to finished goods and final consumption?

            A.        Customer order entry.

            B.        Supply chain.

            C.        Information process integration.

            D.        Standard cash cycle.

7.         Which of the following is not one of the software packages that has been included in the evolution of integrated business software?

            A.        Inventory Control.

            B.        Just-in-Time.

            C.        ERP.

            D.        MRP.

8.         The creation of entirely new and more effective business processes, without regard for what has gone before is best known as?

            A.        Industrial engineering.

            B.        Accelerated business practices.

            C.        Business processing reengineering.

D.        Better business planning.

9.         Which of the following is a high-level means of thinking about the available business process functionality provided by an SAP R/3 enterprise system?

            A.        Integrated activity.

            B.        Logical component.

            C.        Application module.

            D.        Functional element.

10.       Which of the following best describes the lowest level or atomic level of process in the R/3 enterprise system?

            A.        Business atomic element.

            B.        Business process procedure.

            C.        Low-level process.

            D.        Action service component.

Explanation / Answer

6) We need to find out the option which best describes the business transactions from raw material supplies to finished goods and consumption.

Customer Order Entry process merely denotes the business transaction processes which cater to creation of a custoer order. It does not deals with supplies so it cannot be the right option.

Information process integration deals with integrating all information processes so that everyone in the organization knows the same thing at the same time. It does not deals with supplies and consumption so it cannot be the right option.

Standard Cash Cycle deals with business transactions related to payments to vendors so it cannot be the right option.

It leaves us with option (B) which is Supply Chain. Supply Chain deals with all business transactions involved from raw material supplies to finished good creation and consumption. So it is the right option.

7) Correct Option is (B) Just-In-Time. Just-In-Time or JIT is replenishment philosophy which aims to reduce the inventory buffer by reducing the lead/flow time between production systems.JIT dictates that a product is ordered only when it is required which avoids building up of buffers/inventory of products which wait for consumption. This requires a lot of coordination and hence has NOT beein build into software packages.

8) Correct Option is (C) which is Business Process Reengineering. As the term says it involves reengineering or re-designing of existing business process flow to increase efficiency or TAT. It does not deals with what has been done before and for what reasons.

9) Correct answer is (C) as looking from high level, R/3 environment can be dubbed as collection of Application Modules which interact together to give the integrated functionality.

10) Correct answer is option (D) as it descrbes the interaction between different databases which forms the lowest level of hierarchy in SAP architecture.

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