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Chapter 15S Supply Chain Information Systems

TRUE/FALSE

1.All information systems are computer-based.

Answer: False

Reference: Introduction

Difficulty: Easy

Keywords: information systems, computer-based, manual

AACSB: Use of Information Technology

2.Accuracy is a key performance dimension for strategic decision making information flows.

Answer: False

Reference: Understanding Supply Chain Information Needs

Difficulty: Difficult

Keywords: performance dimension, strategic

AACSB: Use of Information Technology

3.The purpose of the execution and transaction processing supply chain activities is to record

and retrieve data and execute and control physical and monetary flows.

Answer: True

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: purpose, supply chain, information, needs

AACSB: Use of Information Technology

4.Customer relationship management refers to planning and control activities and information

systems that link a firm with its downstream customers.

Answer: True

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: purpose, supply chain, information, needs

AACSB: Use of Information Technology

5.Internal supply chain management is used to link higher level planning and location decis ion-

making with lower level activities within the same supply chain.

Answer: False

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: supply chain, internal

6.Enterprise resource planning applications span the supplier, customer, and internal supply

chain areas.

Answer: True

Reference: Supply Chain Information Systems

Difficulty: Easy

Keywords: supply chain, ERP, enterprise, resource, planning

AACSB: Use of Information Technology

7.ERP’s traditional strengths lie in routi ne decision making and in execution and transaction

processing.

Answer: True

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: supply chain, ERP, enterprise, resource, planning, transaction processing AACSB: Use of Information Technology

8.Warehouse and transportation planning systems support strategic planning efforts by

allocating fixed logistics capacity in the best possible way, given business requirements.

Answer: False

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: supply chain, ERP, enterprise, resource, planning, transaction processing

9.Design collaboration is a typical customer relationship management application.

Answer: False

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: SRM, design collaboration, supplier relationship management

AACSB: Use of Information Technology

10.One ERP vendor is known simply as SAP.

Answer: True

Reference: Supply Chain Information Systems

Difficulty: Easy

Keywords: SAP, ERP, enterprise, resource, planning

AACSB: Use of Information Technology

MULTIPLE CHOICE

11.Which of these supply chain activities is the most day-to-day, routine activity?

a.control of monetary flows

b.capacity decision

c.warehouse location

d.workforce leveling

Answer: a

Reference: Understanding Supply Chain Information Needs

Difficulty: Easy

Keywords: supply chain, activity, routine

12.Which of these supply chain activities is the most strategic?

a.inventory level

b.new markets entry

c.supplier evaluation systems

d.job scheduling

Answer: b

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: supply chain, activity, strategic

13.A key performance measure for an execution and transaction processing system would be:

a.flexibility.

b.form.

c.function.

d.accuracy.

Answer: d

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: TPS, transaction, processing, system, accuracy

AACSB: Use of Information Technology

14.Flexibility is a key performance dimension for information flows in a(n):

a.strategic decision making activity.

b.global planning activity.

c.routine decision making activity.

d.execution and transaction processing activity.

Answer: a

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: information needs, flexibility, supply chain

AACSB: Use of Information Technology

15.A supply chain information system that links a company with an entity upstream is called

a(n):

a.customer relationship management system.

b.supplier relationship management system.

c.internal supply chain management system.

d.None of these systems provide this linkag

e.

Answer: b

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: information needs, SRM, supplier relationship management, system

AACSB: Use of Information Technology

16.A supply chain information system that is used in the internal supply chain at the strategic

level is a(n):

a.CRM.

b.DSS.

c.ERP.

d.SRM.

Answer: b

Reference: Supply Chain Information Systems

Difficulty: Difficult

Keywords: information system, supply chain, DSS, decision support system

AACSB: Use of Information Technology

17.An execution and transaction processing level system that is used throughout the supply chain

is a(n):

a.CRM system

b.DS system.

c.ERP system.

d.SRM system

Answer: c

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: information system, supply chain, ERP, enterprise resource planning system AACSB: Use of Information Technology

18.Which of the following statements regarding enterprise resource planning systems is NOT

correct?

a.Most companies using ERP use their system to serve all of the information requirements.

b.The primary advantage of ERP systems is that they pull together all of the classic

business functions into a single, tightly integrated package.

c.All of the business functions running from an ERP system use a common database.

d.Making ERP systems integrate with other applications in a business presents a significant

technological challenge.

Answer: a

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: information system, supply chain, ERP, enterprise resource planning system AACSB: Use of Information Technology

19.Logistics information systems that support tactical planning efforts by allocating fixed

logistics capacity in the best possible way given business requirements are known as:

a.decision support systems.

https://www.sodocs.net/doc/5612818381.html,work design applications.

c.warehouse management and transportation execution systems.

d.warehouse and transportation planning systems.

Answer: d

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: information system, logistics, warehouse management, transportation

execution

AACSB: Use of Information Technology

20.A typical SRM application is:

a.negotiations.

b.market analysis.

c.order management.

d.service center management.

Answer: a

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: supplier relationship management, SRM, application, negotiation

AACSB: Use of Information Technology

21.A typical CRM application is:

a.design collaboration.

b.sell process.

c.sourcing decisions.

d.supply collaboration.

Answer: b

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: customer relationship management, CRM, application, sell process

AACSB: Use of Information Technology

FILL IN THE BLANK

22.APICS defines a(n) __________ as a set of interrelated components that collect, process,

store, and distribute information to support decision making, coordination, and control in an organization.

Answer: information system (IS)

Reference: Introduction

Difficulty: Easy

Keywords: information, information system

AACSB: Use of Information Technology

https://www.sodocs.net/doc/5612818381.html,puter-based information systems that allow users to analyze, manipulate, and present

data in a manner that aids higher-level analysis and conclusions are called __________.

Answer: decision support systems

Reference: Supply Chain Information Systems

Difficulty: Easy

Keywords: DSS, decision support systems

AACSB: Use of Information Technology

24.Long term strategic questions such as facility location and sizing are addressed by

__________.

Answer: network design applications

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: network design applications

AACSB: Use of Information Technology

25.__________ are logistics information systems that initiate and control the movement of

materials between supply chain partners.

Answer: warehouse management and transportation execution systems

Reference: Supply Chain Information Systems

Difficulty: Difficult

Keywords: warehouse management, transportation execution systems

AACSB: Use of Information Technology

26.Warehouse and transportation planning systems support __________ planning efforts.

Answer: tactical

Reference: Supply Chain Information Systems

Difficulty: Difficult

Keywords: warehouse planning, transportation planning, tactical

AACSB: Use of Information Technology

27.Market analysis, order management, and service center management are all examples of

applications found in a(n) __________ system.

Answer: CRM (customer relationship management)

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: CRM, customer relationship management

AACSB: Use of Information Technology

ESSAY

28.What are the information needs at the four levels (execution and transaction processing,

routine decision making, tactical planning, and strategic decision making) of supply chain activity?

Answer: At the lowest levels, execution and transaction processing needs data to be

retrieved and recorded and also to control physical and monetary flows. The routine

decision making level needs a system that can support rule-based decision making. The purpose of an IS at the tactical planning level is to develop plans that coordinate actions of key supply chain areas. At the highest level, the strategic supply chain activity needs a system that can help develop long-range strategic plans for meeting the organization’s

mission.

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate

Keywords: strategic, tactical, routine, execution, supply chain

AACSB: Use of Information Technology

29. What are the functions and relationships between both customer and supplier relationship

management and internal supply chain management?

Answer: Customer relationship management is a term that broadly refers to planning and control activities and information systems that link a firm with its downstream customers. Supplier relationship management systems are planning and control activities and

information systems that link a firm with its upstream suppliers. The firm lies between suppliers and customers in the supply chain, and an internal supply chain management system must facilitate information flows between higher and lower levels of planning and control systems within the organization.

Reference: Understanding Supply Chain Information Needs

Difficulty: Moderate Keywords: CRM, SRM, customer, supplier, relationship, management

AACSB: Use of Information Technology

30. Sketch the supply chain and indicate which information systems address which areas of the

supply chain.

Answer: Supply chain components are indicated on the horizontal axis with applications appear above each entity. Figure 15S.2 of the text adds a supply chain component called logistics, with its own information systems. This section has been shaded to reduce printability.

Reference: Supply Chain Information Systems

Difficulty: Difficult

Keywords: ERP, SRM, CRM, DSS. supplier, customer, relationship, enterprise system AACSB: Use of Information Technology

Strategic decision making Tactical planning Routine decision making Execution & transaction processing Suppliers Customers Internal supply chain Logistics

31.What is the purpose of an ERP system and what advantages does it hold over the more

traditional system it replaces?

Answer: An enterprise resource planning (ERP) system is a large, integrated, computer-based business transaction processing and reporting system. ERP systems pull together all of the classic business functions into a single tightly integrated package that uses a

common database. The integration and single source of data are the primary advantages of such a system. As data are gathered, they need to be represented, stored, and updated in only one location, thereby reducing data redundancy, potential for errors, and

confusion.

Reference: Supply Chain Information Systems

Difficulty: Moderate

Keywords: ERP, enterprise resource planning, legacy

AACSB: Use of Information Technology

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