ERP Systems chapter 1 quiz solution

What Are ERP Systems?

In this article discover ERP Systems chapter 1 quiz solution.

ERP (Enterprise Resource Planning) systems integrate various functions of an organization into one unified system, improving efficiency and collaboration. Let’s dive into some important concepts and FAQs about ERP systems.

Also read Enterprise Resources Planning (ERP) Course Overview 2025


ERP Systems chapter 1 quiz solution

1. Which of the following is not a term used to describe ERP systems?

Correct Answer: Functional-oriented systems

ERP systems are not functional-oriented; instead, they are integrated, process-centered, and cross-functional systems that connect various departments for seamless operation.


2. What software helps manufacturing companies calculate raw materials, subassemblies, and components for production?

Correct Answer: Material requirements planning (MRP)

MRP software is specifically designed for manufacturers to plan and manage materials, ensuring they have the right resources at the right time.


3. What are collections of activities linked together that add value to an organization called?

Correct Answer: Business processes

Business processes streamline workflows by connecting activities that contribute to organizational goals, enhancing efficiency.


4. ERP systems are comprised of what?

Correct Answer: Modules

Modules are individual components of ERP systems designed to operate independently while supporting specific organizational functions like finance, HR, or inventory management.


5. What characterizes Tier III ERP systems?

Correct Answer: Lowest cost ERP

Tier III ERPs are budget-friendly solutions suitable for small and mid-sized businesses, offering essential functionalities without global-scale features.


6. The focus of ERP systems is on data ________ and data sharing.

Correct Answer: Integration

ERP systems integrate data across departments, enabling a single source of truth and fostering collaboration among teams.


7. According to research, what is NOT a major drawback of ERP systems?

Correct Answer: ERP systems are sold with multiple modules, which creates integration issues

Integration challenges are rare, as modern ERP systems are designed to be modular yet cohesive. High costs and user resistance are more common drawbacks.


8. Which of the following is not part of organizational change management (OCM)?

Correct Answer: Scaling the system up so that more employees can use the system

OCM focuses on people, communication, and training, ensuring users adapt to ERP changes effectively. Scaling the system is a technical aspect, not an OCM responsibility.


9. Which of the following is NOT a Tier 1 ERP system?

Correct Answer: Oracle NetSuite

Oracle NetSuite is a Tier II ERP system catering to mid-sized organizations, while Tier 1 systems like SAP S/4HANA serve large, global enterprises.


10. What is a vertical solution in ERP systems?

Correct Answer: Software based on an industry’s best practices

Vertical solutions are tailored ERP configurations designed to meet the specific needs of industries, such as healthcare, manufacturing, or retail.


11. Which of the following modules is not part of Core ERP?

Correct Answer: Supplier relationship management

Core ERP focuses on foundational functions like finance, operations, and HR. Supplier relationship management is considered an extended feature.


12. What is the term for a procedure recognized as effective and efficient in an industry?

Correct Answer: Best practice

Best practices set standards for optimal performance, ensuring companies leverage proven strategies to enhance efficiency and results.

13. Which of the following characterizes Tier III ERP systems?

Correct Answer: Lowest cost ERP

Tier III ERP systems are designed for smaller organizations, focusing on affordability while providing essential ERP functionalities.


14. What software do manufacturing companies use to calculate raw materials for production?

Correct Answer: Material requirements planning

This software ensures efficient planning of raw materials, subassemblies, and components for production processes.


15. Which of the following is true about “best practices”?

Correct Answer: Best practices are what differentiates one ERP vendor’s solution from another’s.

Each ERP vendor develops unique best practices tailored to industries, making their solutions distinct from competitors.


16. What term refers to a procedure recognized as effective and efficient in an industry?

Correct Answer: Best practice

Best practices streamline processes and set benchmarks for efficiency and performance across industries.


17. The focus of ERP systems is on data ________ and data sharing.

Correct Answer: Integration

Integration ensures that data flows seamlessly between departments, enabling collaboration and informed decision-making.


18. What is NOT a major drawback of ERP systems?

Correct Answer: ERP systems are sold with multiple modules, which creates integration issues

Modern ERP systems are built to work seamlessly across modules, reducing integration concerns significantly.


19. Which of the following modules is NOT considered part of Core ERP?

Correct Answer: Supplier relationship management

Supplier relationship management is an extended feature, while Core ERP includes finance, operations, and HR functionalities.


20. What is NOT part of organizational change management (OCM)?

Correct Answer: Scaling the system up so that more employees can use the system

OCM deals with managing user adaptation to changes, not the technical aspects of scaling ERP systems.


FAQs About ERP Systems (Continued)

What is the difference between Tier I and Tier III ERP systems?

Tier I systems, like SAP S/4HANA, cater to large, multinational enterprises with complex requirements, while Tier III systems are designed for small to mid-sized businesses with limited budgets.

Why is integration crucial in ERP systems?

Integration eliminates data silos, ensuring all departments access consistent, up-to-date information, which improves coordination and efficiency.


Conclusion

This guide covered all 20 questions about ERP systems, providing clear explanations for the correct answers. Understanding these concepts is key to implementing ERP systems successfully and leveraging their full potential.

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