Chapter 11 Enterprise Systems PDF

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Chapter 11 - Enterprise Systems True / False 1. Supply chains exist in both service and manufacturing organizations. a. True b. Fals e ANSWER: True RATIONALE: Correct Supply chains exist in both service and manufacturing organizations, although the chain’s complexity can vary widely in different organizations and industries. A supply chain is an integrated network consisting of an organization, its suppliers, transportation companies, and brokers used to deliver goods and services to customers. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 2. A key decision in supply chain management (SCM) related to manufacturing is pricing. a. True b. Fals e ANSWER: False RATIONALE: Correct Four key decisions in SCM related to manufacturing are location, inventory, production, and transportation. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems JECTIVES: TOPICS: Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 3. In the context of supply chain management technologies, using the Internet and Web protocols for electronic data interchange (EDI) increases the cost of transmitting documents. a. True b. Fals e ANSWER: False RATIONALE: Correct Using the Internet and Web protocols for EDI lowers the cost of transmitting documents. This method is called “Web-based EDI” or “Open EDI.” It also has the advantage of being platform independent and easy to use. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 4. Transmitting documents across the Internet involves lower security risks than traditional electronic data interchange (EDI). a. True b. Fals e ANSWER: False RATIONALE: Correct Transmitting documents across the Internet involves more security risks than traditional EDI, which uses proprietary protocols and networks. Using the Internet and Web protocols for EDI lowers the cost of transmitting documents. See 11-1: Supply Chain Management Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 5. One of the disadvantages of an e-marketplace is that it cannot provide a single platform for prices. a. True b. Fals e ANSWER: False RATIONALE: Correct One of the ways in which e-marketplaces help businesses maintain a competitive edge in the supply chain is by providing a single platform for prices, availability, and stock levels that is accessible to all participants. See 111: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 6. Auctions help determine the price of goods and services when there is no set price in the marketplace. a. True b. Fals Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems e ANSWER: RATIONALE:

True Correct Auctions help determine the price of goods and services when there is no set price in the marketplace. By using the Internet, an online auction brings traditional auctions to customers around the globe and makes it possible to sell far more goods and services than at a traditional auction. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 7. With a structured process of sharing information among supply chain members, retailers can compare customer demands or sales forecasts with a manufacturer’s order forecast. a. True b. Fals e ANSWER: True RATIONALE: Correct With a structured process of sharing information among supply chain members, retailers can compare customer demands or sales forecasts with a manufacturer’s order forecast. Any data collected with point-of-sale systems is shared with all members of the supply chain, which is useful in coordinating production and planning for inventory needs. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems TOPICS: Supply chain management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 8. Businesses find attracting new customers less expensive than maintaining current customers. a. True b. Fals e ANSWER: False RATIONALE: Correct Businesses know that keeping and maintaining current customers is less expensive than attracting new customers, and an effective customer relationship management system is useful in meeting this goal. See 11-2: Customer Relationship Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe customer relationship management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.02 JECTIVES: TOPICS: Customer relationship management systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 9. A grocery store offering loyalty cards with discounts to its customers is an example of how transaction data can be used in a customer relationship management (CRM) system. a. True b. Fals e ANSWER: True RATIONALE: Correct A grocery store offering loyalty cards with discounts to its customers is an example of how transaction data can be used in a CRM system. Knowing that a customer bought 4 gallons of milk the previous week does not give a grocery store much information, but with loyalty cards, the store can track all sorts of information on specific customers. See 11-2: Customer Relationship Management POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems DIFFICULTY: Easy REFERENCES Describe customer relationship management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.02 JECTIVES: TOPICS: Customer relationship management systems KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 10. Organizations sometimes pay external agencies for additional data about their potential customers. a. True b. Fals e ANSWER: True RATIONALE: Correct Organizations can pay external agencies for additional data about their potential customers. This data might be public or semiprivate, such as whether they own their homes, the value of their homes, and their estimated mortgage or rent payments. See 11-2: Customer Relationship Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe customer relationship management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.02 JECTIVES: TOPICS: Customer relationship management systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 11. Collaborative filtering is one of the IT tools that can be used to implement a personalization system. a. True b. Fals e Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems ANSWER: RATIONALE:

True Correct To implement a personalization system, several IT tools are needed, including the Internet, databases, data warehouse/data marts, data-mining tools, mobile networks, and collaborative filtering. One application of collaborative filtering is making automatic predictions about customers’ preferences and interests based on similar users. See 11-2: Customer Relationship Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe customer relationship management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.02 JECTIVES: TOPICS: Customer relationship management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 12. Knowledge management draws on concepts of organizational learning and organizational culture. a. True b. Fals e ANSWER: True RATIONALE: Correct Knowledge management draws on concepts of organizational learning, organizational culture, and best practices to convert tacit knowledge into explicit knowledge, create a knowledge-sharing culture in an organization, and eliminate obstacles to sharing knowledge. See 11-3: Knowledge Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe knowledge management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.03 JECTIVES: TOPICS: Knowledge management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems D: DATE MODIFI 7/25/2018 11:35 AM ED: 13. Information management is broader in scope than knowledge management because the latter tends to focus on just explicit knowledge. a. True b. Fals e ANSWER: False RATIONALE: Correct Knowledge management shares many of the goals of information management but is broader in scope because information management tends to focus on just explicit knowledge. See 11-3: Knowledge Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe knowledge management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.03 JECTIVES: TOPICS: Knowledge management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 14. In the context of knowledge management, tacit knowledge can be captured easily in data repositories. a. True b. Fals e ANSWER: False RATIONALE: Correct Explicit knowledge, such as how to close a sale, can be captured in data repositories and shared. Tacit knowledge, however, cannot be captured as easily. See 11-3: Knowledge Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe knowledge management systems. : QUESTION TY True / False PE: HAS VARIABL False Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems ES: LEARNING OB MIS9.BIDG.19.11.03 JECTIVES: TOPICS: Knowledge management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 15. The best way to gather tacit knowledge is interactively, such as asking an employee specific questions about how he or she would handle an issue. a. True b. Fals e ANSWER: True RATIONALE: Correct Typically, the best way to gather tacit knowledge is interactively, such as asking an employee specific questions about how he or she would handle an issue. Knowledge that someone has gained through experience might vary depending on the situation in which it was used-the context. See 11-3: Knowledge Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe knowledge management systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.03 JECTIVES: TOPICS: Knowledge management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 16. One of the drawbacks of a well-designed enterprise resource planning (ERP) system is that it tends to increase the cost of inventories. a. True b. Fals e ANSWER: False RATIONALE: Correct One of the benefits of a well-designed ERP system is that it reduces inventory Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems costs. Having modular components is a major factor in the success of ERP systems because it keeps costs down. See 11-4: Enterprise Resource Planning POINTS: 1 DIFFICULTY: Moderate REFERENCES Describe enterprise resource planning systems. : QUESTION TY True / False PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.04 JECTIVES: TOPICS: Enterprise resource planning systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: Multiple Choice 17. In a manufacturing firm’s supply chain, raw materials flow from _____ to manufacturers, where they are transformed into finished goods. a. suppliers b. traders c. retailers d. distributor s ANSWER: a RATIONALE: Correct. In a manufacturing firm’s supply chain, raw materials flow from suppliers to manufacturers (where they are transformed into finished goods), then to distributors, then to retailers, and finally to consumers. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems DATE MODIFI 7/25/2018 11:35 AM ED: 18. In manufacturing, which is one of the major links in the supply chain? a. Virtual networking b. Foreign keys c. Application generation d. Distribution centers ANSWER: d RATIONALE: Correct. In manufacturing, the major links in the supply chain are suppliers, manufacturing facilities, distribution centers, retailers, and customers. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 19. In real estate firms, which is considered one of the major links in the supply chain? a. Service providers b. Manufacturing facilities c. Production units d. Retailers ANSWER: a RATIONALE: Correct. In service organizations-such as those in real estate, the travel industry, temporary labor, and advertising-the major links in the supply chain include suppliers (service providers), distribution centers (such as travel agencies), and customers. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 20. Which function is coordinated by a supply chain management (SCM) system? a. Procuring materials and transforming them into intermediate and finished products or services b. Capturing information about customer interactions for sales personnel and customer service representatives c. Focusing on long-term relationships with customers d. Improving budget allocation and managing cash flows ANSWER: a RATIONALE: Correct. An SCM system coordinates procuring materials (in service organizations, this can include resources and information), transforming materials into intermediate and finished products or services, and distributing finished products or services to customers. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management systems Supply chain management KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 21. In a manufacturing firm’s supply chain management (SCM) system, which area oversees order transmission? a. Product flow b. Information flow c. Stock location flow Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems d. Finances flow ANSWER: b RATIONALE: Correct. Overseeing order transmissions is part of the information flow in a manufacturing firm’s SCM system. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management systems Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 22. In a manufacturing firm’s supply chain management (SCM) system, which area handles credit terms and payment schedules? a. Product flow b. Information flow c. Finances flow d. Stock location flow ANSWER: c RATIONALE: Correct. In a manufacturing firm’s SCM system, handling credit terms, payment schedules, and consignment and title ownership arrangements is part of the finances flow. See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management systems Supply chain management KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems D: DATE MODIFI 7/25/2018 11:35 AM ED: 23. Which is considered a key decision in supply chain management (SCM) related to manufacturing? a. Consumer type b. Initial investment c. Revenue d. Location ANSWER: d RATIONALE: Correct. Four key decisions in SCM related to manufacturing are location, inventory, production, and transportation. One of the key decisions in SCM is “Where should manufacturing facilities be placed?” See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Easy REFERENCES Explain how supply chain management is used. : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management Supply chain management systems KEYWORDS: Remember DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 24. In supply chain management (SCM) related to manufacturing, which of the following is considered a key decision about inventory? a. Which transportation systems will reduce cost? b. What should be produced? c. How much should be ordered? d. Where should the manufacturing facilities be located? ANSWER: c RATIONALE: Correct. In SCM related to manufacturing, decisions about inventory are taken by considering the following questions: 1) When should an order be placed? 2) How much should be ordered? See 11-1: Supply Chain Management POINTS: 1 DIFFICULTY: Moderate REFERENCES Explain how supply chain management is used. Copyright Cengage Learning. Powered by Cognero.

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Chapter 11 - Enterprise Systems : QUESTION TY Multiple Choice PE: HAS VARIABL False ES: LEARNING OB MIS9.BIDG.19.11.01 JECTIVES: TOPICS: Supply chain management Supply chain management systems KEYWORDS: Understand DATE CREATE 6/6/2018 4:02 PM D: DATE MODIFI 7/25/2018 11:35 AM ED: 25. Which vendor offers comprehensive solutions for organizations that do not have in-house resources to develop a supply chain management (SCM) system? a. SAP b. Sun Microsystems c. Microsoft d. Red Hat ANSWER: a RATIONALE: Correct. For organizations that do not have in-house resources to develop an SCM system, several vend...