Logistics and Procurement Quiz

Which of the following module is a part of Logistics area and helps to manage the procurement activity of an organization from procurement?

• SAP Project System

• SAP Quality Management

• SAP Material Management

• SAP Supply Chain Management

Which of the following is not a feature of SAP MM module?

• Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization.

• SAP MM deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc.

• SAP MM submodules vary as per industry type like discrete production, repetitive production, or production industries.

• SAP MM speeds up the procurement and material management activities making the business run smoother with complete time and cost efficiency.

The process of buying materials and obtaining services in SAP MM from vendors or dealers is procurement?

• True

• False

Which of the following is first step in Procurement life cycle?

• Look for the suppliers who can fulfill the requirements.

• Gathering information about product and its quantity.

• Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services.

• Performance of the products or services is evaluated and any follow up service support is analyzed.

Arrange the below steps of Procurement Lifecycle in correct order

• 1,2,3,4,5

• 1,4,5,3,2

• 1,4,5,2,3

• 1,5,4,3,2

Which of the following material is kept under stock once received from vendor?

• Procurement for direct consumption

• Procurement for Stock

• Procurement for production order

• None of these

The stocks that did not belong to company and these are being kept at some particular location is known as?

• Internal Stock

• External Stock

• Special Stock

• None of these

Material that is available at your store premises, however it still belongs to the vendor (seller)/Owner of the material is known as?

• Special Stock

• Stock for direct consumption

• Consignment Stock

• None of these

The vendor receives components from the ordering party with the help of which it produces a product is known as?

• Subcontracting

• Pipeline handling

• Returnable Transport Stock

• Stock Transport Order

The Organizational Structure in MM consists of which of the following elements?

• Company Code

• A, B and C

• Plant

• Client

• Storage Location