28) ________ refers to the use of key performance indicators to monitor performance of the
entire supply chain, including sourcing, planning, production, and distribution.
A) Supply chain integration
B) Supply chain optimization
C) Supply chain strategy
D) Supply chain visibility
E) Supply chain analytics
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
29) ________ is the extent to which a company’s supply chain is focusing on minimizing
procurement, production, and transportation costs.
A) Supply chain analytics
B) Supply chain effectiveness
C) Supply network collaboration
D) Supply chain efficiency
E) Supply chain visibility
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
30) ________ is the extent to which a company’s supply chain is focusing on maximizing
customer service with lesser focus on procurement, production, and transportation costs.
A) Supply chain visibility
B) Supply chain effectiveness
C) Supply chain analytics
D) Supply chain efficiency
E) Supply network collaboration
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
11
31) Which of the following is an example of supply chain efficiency?
A) Aubrey Express, a consultancy, focuses on providing superior service to its clients.
B) Fyroff, an automobile manufacturing company, has high spare parts availability.
C) Glassico, a soft drink manufacturing company, introduces a new soft drink flavor.
D) Timeplz, a watch manufacturing company, positions itself as a prestige brand.
E) Xenthix, an electronics company,sources its raw materials in ways that keep its costs low.
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Application
32) ________ is a standard for exchanging structured information over the Web.
A) Extensible Markup Language
B) JavaScript
C) MySQL
D) Active Server Pages
E) Unified Modeling Language
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
33) ________ allow(s) designers of Web documents to create their own customized tags,
enabling the definition, transmission, validation, and interpretation of data between applications
and between organizations.
A) MySQL
B) Active Server Pages
C) Extensible Markup Language
D) Perl
E) Unified Modeling Language
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
12
34) A(n) ________ is a label that is inserted into an XML document in order to specify how the
data contained in the document or a portion of the document should be interpreted and/or used.
A) Extensible Markup Language (XML) tag
B) Extensible Markup Language (XML) query
C) Extensible Markup Language (XML) Unicode
D) Hypertext Markup Language (HTML) attribute
E) Hypertext Markup Language (HTML) font
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
35) ________ is an XML-based specification for publishing financial information.
A) Extensible Rights Markup Language
B) Extensible Application Markup Language
C) Extensible Access Control Markup Language
D) Extensible Business Reporting Language
E) Enterprise Mashup Markup Language
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
36) ________ includes tags for data such as annual and quarterly reports, Securities and
Exchange Commission filings, general ledger information, and net revenue and accounting
schedules.
A) Extensible Application Markup Language
B) Extensible Business Reporting Language
C) Extensible Access Control Markup Language
D) Enterprise Mashup Markup Language
E) Extensible Rights Markup Language
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
13
37) Lee’s department store uses the every day low prices strategy. This strategy hinges upon the
store’s ability to obtain consumer goods at the cheapest possible price and passes these savings
on to consumers. Lee’s store also developed its own distribution network for supplying its retail
outlets with consumer goods. This distribution network allowed them to cut out external
suppliers and middlemen thereby driving down business costs further. This implies that the
competitive strategy used by this store would most likely focus on ________.
A) supply chain efficiency
B) supply chain visibility
C) supply chain effectiveness
D) supply chain sustainability
E) supply chain logistics
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Application
38) Comptel, a world leader in computer hardware, differentiates itself from its competitors by
providing excellent after-sales service. This implies that the competitive strategy used by
Comptel would most likely focus on ________.
A) supply chain analytics
B) supply chain visibility
C) supply chain effectiveness
D) supply network collaboration
E) supply chain efficiency
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Application
39) ________ is the use of electromagnetic energy to transmit information between a reader
(transceiver) and a processing device.
A) Radio frequency identification
B) High capacity color barcoding
C) Interferometric modulator display
D) Photonic computing
E) Electronic product coding
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
14
40) ________ can be used just about anywhere a unique identification system might be needed,
such as on clothing, pets, cars, keys, missiles, or manufactured parts.
A) Hypertext Markup Language (HTML) tags
B) Radio frequency identification (RFID) tags
C) Spintronics
D) XML tags
E) High capacity color barcodes
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
41) Which of the following statements is true about radio frequency identification (RFID)
systems?
A) RFID scanning can be done at greater distances than bar code scanning.
B) RFID information is readable depending on the entity’s position.
C) RFID tags contain less information than bar codes.
D) All RFID tags are small and relatively inexpensive.
E) RFID requires time-consuming hand scanning.
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
42) Which of the following statements about radio frequency identification (RFID) passive tags
is true?
A) They are small and relatively inexpensive.
B) They have a range up to 300 feet or more.
C) They cost more than active tags.
D) They have an internal battery source.
E) They typically cost about $10.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
15
43) Which of the following statements about radio frequency identification (RFID) active tags is
true?
A) They are inexpensive, with prices starting at 10 cents.
B) They have a range up to 40 feet.
C) They are small compared to passive tags.
D) They include a battery.
E) They are less expensive compared to passive tags.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
44) The flow of materials from suppliers to customers can be described as a supply network.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
45) Electronic Data Interchange (EDI) refers to computer-computer communication without any
human intervention.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
46) Production scheduling leads to the development of a sourcing plan.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
47) Just-in-time is a business model in which the suppliers manage the manufacturer’s inventory
based on pre-established service levels.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
16
48) One major problem affecting supply chains are ripple effects referred to as the multiplier
effect.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
49) Supply chain management improves the coordination of suppliers, product or service
production, and distribution.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
50) Supply chain management is primarily used to optimize business processes within the
organization.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
51) The efficiency of a supply chain management (SCM) system is independent of the data
entered into it.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
52) Supply chain execution involves the development of various resource plans to support the
efficient and effective production of goods and services.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
17
53) Supply chain efficiency is the extent to which a company’s supply chain is focusing on
maximizing customer service regardless of procurement, production, and transportation costs.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
54) Supply chain effectiveness is the extent to which a company’s supply chain is focusing on
minimizing procurement, production, and transportation costs, sometimes by sacrificing
excellent customer service.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
55) Supply chain management systems allow for making trade-offs between efficiency and
effectiveness for individual components or raw materials.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
56) The only drawback of Extensible Markup Language (XML) is that it is not customizable.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
57) Although radio frequency identification (RFID) tags contain more information than bar
codes, they require time-consuming hand scanning.
Difficulty: Easy
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
18
58) Briefly describe the concept of portals in the context of supply chain management.
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
19
59) Compare and contrast vendor-managed inventory (VMI) model and traditional inventory
model. List the benefits of the VMI model.
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
60) Define supply chain planning (SCP) and list the processes that are generally supported by its
modules.
Difficulty: Moderate
Learning Obj.: 8.1: Describe supply chain management systems and how they help to improve
business-to-business processes.
Classification: Concept
20