In SAP ERP production planning strategy, net requirements planning (Strategy 10), procurement proposals are based on

• CIRs and components that are already in stock.

• PIRs, with regard to CIRs.

• PIRs, without regard to CIRs.

• CIRs, but components are not in stock.

• PIRs, but the components are not in stock.

Which of the following statements concerning maintaining inventory at high levels are TRUE?

• The longer the materials remain in storage, the more money the company loses.

• Maintaining high levels of inventory can lead to serious write-offs.

• Maintaining high levels of inventory is a recommended material planning policy.

• Maintaining high levels of inventory can incur insurance costs.

• The company may lose money storing excessive inventory, but the customer's interest must be the company's highest priority.

SOP can be either flexible or standard.

• 1. True

• 1. False

If materials are to be procured externally, then, in the determine procurement proposal step, MRP

• Can create purchase requisitions.

• Will always generate planned orders.

• Will determine the quantity of material to procure.

• Can create planned orders.

• Can create schedule lines.

Which of the following statements about the MRP step in the material planning process are TRUE?

• MRP can be executed for one plant.

• Planning for specific storage location in not possible with MRP.

• MRP can be executed for multiple plants.

• MRP can be executed within MRP areas.

• MRP can only be executed manually by the MRP controller.

A company has two options for procuring materials: make or buy. Which MRP data view of the material master will the ERP system consider for this decision?

• MRP 1

• MRP 2

• MRP 3

• MRP 4

• None of the above

Whether SOP is required depends on the production planning strategy used for the material.

• 1. True

• False

Storage area is one of the organizational data elements in material planning.

• 1. True

• False

Given the following information, use the net requirement calculation to calculate the available stock.MRP type is MPS.Plant stock = 100Receipts = 20Issues = 10Safety stock = 30

• 1. 120

• 2. 130

• 2. 80

• 2. 70

• 2. 110

A BOM always identifies the components needed to make one unit of the finished product.

• 1. True

• False