Enterprise Resource Planning – MC – Enterprise Resource Planning is

Enterprise Resource Planning

Section A: Objective Type & Short Questions (30 marks)

Part One:

Multiple Choices:

  1. Enterprise Resource Planning is:
    1. Computer System
    1. Manufacturing organization
    1. Method of effective planning of all the resources in an organization
    1. None of the above
  • Enterprise Resource Planning vendors are those people:
  1. Who are experts in administration and management of projects
    1. Who have developed the ERP packages
    1. Who uses the ERP system
    1. None of the above
  • Interviewing and cost justification is tool and technique of:
    • Design step of ERP
    • Implementation step of ERP
    • Requirement analysis of ERP
    • Planning step of ERP
  • Support re-engineering processes to fit the software systems best practice is approach of:
    • Re-engineering approach
    • Customizing approach
    • Rational approach
    • None of the above
  • Process of tracking customer contacts and providing the customer with a price quote is:
  1. Inventory sourcing
    1. Sales order processing
    1. Pre-sales
    1. None of the above
  • The difficulty in creating an audit trial of transactions when multiple transactions use multiple database is associated with:
  1. Product profitability sub-system
    1. Finished goods inventory sub-system
    1. Management reporting sub-system
    1. Creating an audit trial sub-system
  • Differences occur between standard costs and actual costs is problem associated with:
    • Accounting
    • Production
    • Purchasing / Materials Management
    • None of the above
  • MRP in Enterprise resource planning stands for:
  1. Maximum retail price
    1. Material requirement planning
    1. Management requirement planning
    1. None of the above
  • Process of providing status of purchase order comes in a category of:
    • Purchase order follow-up
    • Source determination
    • Determine requirement
    • Invoice verification
  1. Resource failure occurs when:
  1. People clashes
    1. Inability to communicate with the system user
    1. Poor specification of requirements
    1. Conflicts of people, time and project scope due to insufficient personnel

Part Two:

  1. What are the advantages of the re-engineering method of implementing ERP?
  • What are the benefits reported from implementing ERP?
  • Write a short note on “Credit Management”.
  • Define Material Requirements Planning.

Section B: Caselets (40 marks)

Caselet 1

Tech Knowledge is a start-up founded in 1997 by Robert Thyer. The company is a distributer of presentation technologies, including computer based projection systems, video equipment, and display technologies. The firm has 25 employees and does $5 million in sales. It is growing rapidly. The owner, Robert Thyer, would like to net source the back-office functions of the firm because the company does not have an internal IT capability. The applications to be net sourced would include sales and distribution, financial accounting, and inventory management.

Tech Knowledge would like to source SAP or another ERP vendor via a hosting arrangement. It does not expect to do much customization, and it does not have any legacy systems.


  1. What factors should it use to evaluate each of these potential hosts?
  • What controls should be in place to monitor the hosting arrangement?

Caselet 2

ITM is a company specializing in network implementation and management. It provides networking services to mid-sized companies, which do not have an internal networking analyst or IT, manager. These organizations include real estate companies, law offices, medical practices, architectural / engineering firms, construction companies, business services providers, country clubs, community organizations, and churches.

ITM uses a legacy accounting system to handle its financial accounting and financial management functions. It has added on a billing package for client services. The next step is to obtain a CRM capability to manage information about current and prospective customers more effectively.

You have been assigned to identify potential sources for a net-sourcing arrangement with an ERP vendor, which provides CRM capabilities.


  1. Identify potential sources of software.
  • Determine five criteria you will recommend be used to evaluate each of alternative providers.

Section C: Applied Theory (30 marks)

  • Explain in brief Sales and Marketing Modules in ERP System.
  1. What are the different development process in ERP systems and write a detailed note on it?