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Review Questions
1. You are advising a business which does not stock its own inventory, but instead their
suppliers send the products directly to the customer. How do you set up the warehouses
for this business?
2. ABC Company sells medical equipment. They often have inventory at the hospitals who
are their customers. ABC owns the inventory at the hospitals. The sale occurs when the
hospital uses the inventory items. How do you set up these warehouses that are located at
the hospitals?
3. XYZ Company wants to keep separate inventory accounts and revenue accounts for their
different lines of sports products. At what level would you advise them to set their G/L
account determination for items?
4. You need to track expiration dates for dairy products you sell. How would you set up the
item master for the dairy products?
5. Someone from your marketing department is attending a trade show and would like to
bring some products to demonstrate to potential customers. What goods movement
would you use to track that these items are at the trade show and not in the warehouse?
6. During picking, one of the warehouse staff dropped a carton of lightbulbs that were to be
shipped to a customer. What document should be used to track the damage?
7. If you set your company to allow negative inventory, what effect do you think this will
have on pick lists?
8. Your business has a customer who should always receive 5% off the preferred customer
price list. What is the best way to set this up?
9. Your large company price list is currently set up to be 10% less than the small company
price list. You have decided that you would like to change this to now be 12% less.
Whats the easiest way to do this?
10. All the prices in your company will be going up by 2% on January 1. Whats the best
way to handle this?
11. You want to give a 4% discount for all IBM printers. What pricing option should you use
for this?
12. You have decided to give KLX Company an extra 2% discount on their five most
purchased items during the next two months. During this period they will get a 3%
discount if they purchase a quantity of 5 or more. What pricing option would you use to
set this up?
13. You have built a forecast for the X-1111 item which predicts a need for 100 to be
produced each month. You have already received sales orders for this period. You do not
want to count the sales orders towards the demand. How do you set MRP to ignore the
demand from the sales orders?