Untitled Quiz

Procurement Process

• An RFQ (Request for Quotation) is an invitation to a vendor to submit a bid for the supply of materials or services.
• A quotation received from a vendor is a legally binding offer, containing prices and conditions for the materials specified in the RFQ for a predefined period of time.

Quotation and Pricing

• Buyers can perform Quotation Price Comparisons.
• Contracts consist of items defining the individual materials, material groups, or services with prices.

Inventory Management

• Inventory Management deals with the management of stock, either on value or quantity basis.
• Storage Location is an organizational unit allowing differentiation between the various stocks of a material in a plant.

Purchasing Organization

• A Purchase Organization is an organizational unit responsible for procuring services and materials.
• The buying activity for a plant takes place at the Purchasing Organization.
• Purchasing Information Record can be created manually.
• Purchasing Group is the key that represents the buyer or group of buyers who are responsible for certain purchasing activities.

Vendor Evaluation

• Vendor Evaluation helps purchasing evaluate vendors for sourcing while also enabling the company to monitor vendor relationships through performance scores and criteria.

Procure-to-Pay Process

• The first step in the procure-to-pay process is Purchase Requisition.
• Purchase Requisition is an internal document requesting the purchasing department to procure a specific good or service for a specified time.
• A Purchase Order is a formal request to a vendor for a specific material or service under the stated conditions.

Production Planning

• Production Planning is an integrated planning tool for batch-oriented process manufacturing.
• Routing is used as a template for production orders and run schedules.
• Availability check is used to determine whether the component, production resource tools, or capacities in an order are available.
• Sale and Operations Planning usually consists of three steps.
• Accurate forecasts are not optional in the manufacturing sector.

Production Processes

• Scheduling Agreement is a total quantity of material spread over a certain period, consisting of line items indicating quantities and their planned delivery date.
• Bill of Materials is used as a basis for product costing.
• SAP divides production into multiple processes.
• Variant bill of materials refers to several products with a large proportion of identical parts.
• Shop Floor Documents are printed upon release of the Production Order.

Master Production Scheduling

• Master Production Scheduling is planned at an aggregate level in time buckets.
• Dynamic calculates the optimum lot size for a several periods of net requirements.

Sales and Operations Planning

• Sales and Operations Planning information origination excludes Accounting.
• Independent demand is the source of demand that resides at another level.