Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
1. On the buying side, organizations are becoming much more focused and sophisticated in making decisions
involving investments in e-SCM systems.
a.
True
b.
False
True
Easy
Analytic
2. Because MRP and DRP systems are primarily external, an additional electronic linkage to suppliers and
customers is not needed.
a.
True
b.
False
False
Easy
Analytic
3. The goal of DRP systems is to integrate all business function planning and processing, and to avoid data
interruption to make better business decisions and run the business more effectively and efficiently.
a.
True
b.
False
False
Moderate
Analytic
4. Today, software solutions are aimed at collaboration among supply chain partners through point of sale
systems, RFID, and other information-sharing systems.
a.
True
b.
False
True
Easy
Analytic
5. In pre-ERP environments, every functional area had its own set of software applications, often running on completely
different systems.
a.
True
b.
False
True
6. SRM and CRM applications are directly focused on planning and managing the firm’s internal linkages.
a.
True
b.
False
False
Moderate
Analytic
7. Currently, vendors specializing in CRM and SRM systems tend to provide lower levels of functionality in
their chosen areas than do ERP vendors.
a.
True
b.
False
False
Easy
Analytic
8. Increasing the level of integration between logistics and other SCM applications presents firms with both
technical and organizational hurdles.
a.
True
b.
False
True
Easy
Analytic
9. Facing increased cost pressure, organizations rely more on people to replace systems.
a.
True
b.
False
False
Easy
Analytic
10. Users must be able to extract from databases the information they need to make better supply chain
decisions.
Easy
Analytic
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
a.
True
b.
False
True
Easy
Analytic
11. Historically, companies adopted a unified approach to system usage, such that each function could
communicate with each other in the company.
a.
True
b.
False
False
Easy
Analytic
12. In ERP, all processes use unique databases, and information is captured multiple times.
a.
True
b.
False
13. In ERP, visibility of specific transactions taking place in each business process is accessible to everyone in
the organization.
a.
True
b.
False
True
Easy
Analytic
14. When companies map what they believe a process looks like, they discover that the actual process is quite
different from what they thought it would look like.
a.
True
b.
False
True
Easy
Analytic
15. When it comes time to create an information system around business processes, few companies discover that
they must also reengineer or change their business processes before they can build an information system
around them.
a.
True
b.
False
False
Moderate
Analytic
16. Increased redundancy of information between files allows different systems to cross-reference and
efficiently use the data contained in all files.
a.
True
b.
False
False
Easy
Analytic
17. A data warehouse, in theory, is organized around informational subjects rather than specific business
processes.
a.
True
b.
False
18. Data held in data warehouses are time-dependent, historical data; they may also be aggregated.
a.
True
b.
False
True
Easy
Analytic
19. EDI requires investment in general purpose hardware that could be used for a variety of purposes.
a.
True
b.
False
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
False
Moderate
Analytic
20. EDI is considered a highly interactive communications medium.
a.
True
b.
False
False
Easy
Analytic
21. Web-based EDI is a much less expensive system than traditional EDI and presents fewer standards issues.
a.
True
b.
False
True
Easy
Analytic
22. Sell-side e-sourcing systems are controlled by buyers and are tied into the buyers’ intranets and extra-nets.
a.
True
b.
False
False
Easy
Analytic
23. A set of SRM sourcing modules acts as an interactive system designed to support purchasing managers in
making effective decisions concerning supplier selection, contract management, contract compliance, and so on.
a.
True
b.
False
True
Moderate
Analytic
24. The goal of spend analysis is to determine what goods and services are purchased, what suppliers they are
purchased from, and where the demand for the items originates in the organization.
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
a.
True
b.
False
True
Moderate
Analytic
25. A reverse auction is a software tool that extends the tradition bid process to permit suppliers to configure
their bids in any number of alternatives ways.
a.
True
b.
False
26. In a regular reverse auction, prices are anonymous, and the identity of the competitors is provided to all
sellers.
a.
True
b.
False
27. Price should be a very important element of the reverse auction process but not the only one.
a.
True
b.
False
True
Easy
Analytic
28. Contract management and compliance provides oversight of the front end of the sourcing process.
a.
True
b.
False
False
Moderate
Analytic
29. Real-time updating refers to the process of downloading all data buckets into the main system on a regularly
scheduled basis.
a.
True
b.
False
30. B2B marketers are using Facebook and other social networking providers such as LinkedIn to facilitate the
sales process.
a.
True
b.
False
True
Easy
Analytic
31. Participants in blog sites are free to post their reactions, and individuals can respond to other participants’
responses.
a.
True
b.
False
True
Easy
Analytic
32. In essence, blog posting encompasses any subscription-based or pay-per-use service that is in real time and
over the Internet.
a.
True
b.
False
False
Easy
Analytic
33. A public cloud is a proprietary network or a data center that supplies hosted services to a limited number of
people.
a.
True
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
b.
False
34. The most important benefit of a visibility system is not that the system is able to correct a supply chain
problem, but that it allows people to become aware of problems earlier and thus take corrective actions more
quickly that they would otherwise.
a.
True
b.
False
True
Moderate
Analytic
35. The dangers of poor execution of supply chain processes include increased lead and cycle times, higher
costs, and less-informed decision making.
a.
True
b.
False
True
Easy
Analytic
36. Making information visible does not require a degree of collaboration between the parties.
a.
True
b.
False
False
Easy
Analytic
37. SMAC is the new enterprise IT model delivering an organization that is more connective, collaborative, real-
time, and productive.
a.
True
b.
False
38. At the most basic level, information flows record and retrieve critical data, then execute and control physical
and monetary flows, and are referred to as _____.
a.
Internet-based information technology
b.
EDI
c.
strategic decision making
d.
DSSs
e.
transaction processing
39. In a _____ system, decisions are automated, with exceptions dealt with manually.
a.
transaction processing
b.
routine decision making
c.
strategic decision making
d.
decision support
e.
None of the above.
40. A _____ system is often used to search for patterns or relationships in the data.
a.
routine decision making
b.
strategic decision making
c.
transaction processing
d.
decision support
e.
None of the above.
41. _____ applications address such long-term, strategic questions as “Where should we locate warehouses?”,
and “How large should our transportation fleet be?,” often making use of simulation and optimization modeling.
a.
Execution
b.
Network design
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
c.
MRP
d.
JIT
e.
None of the above.
Moderate
Analytic
42. _____ systems attempt to allocate fixed logistics capacity in the best possible way, given business
requirements.
a.
MRP
b.
Network design
c.
SRM
d.
Transportation and warehouse planning
e.
Execution
43. _____ systems kick off and control the movement of materials among supply chain partners.
a.
Network design
b.
EDI
c.
MRP
d.
Execution
e.
Transaction processing
44. Which of the following is not one of the primary drivers of new e-SCM systems?
a.
Lean supply.
b.
Globalization and communication.
c.
Internal and external strategic integration.
d.
New business processes.
e.
Replacement of legacy systems.
45. A/An _____ system provides the means for tracking organizational resources, including people, processes,
and technology.
a.
MRP
b.
ERP
c.
EDI
d.
legacy
e.
decision support
46. All of the following are examples of the primary business processes around which an ERP system is
designed except _____.
a.
selling a product or service
b.
making a product
c.
buying a product
d.
determining where to locate warehouse facilities
e.
costing, paying the bills, and collecting
47. A/An _____ is an integrated collection of computer files capable of storing operational data essential for
managing a department.
a.
EDI system
b.
e-catalog
c.
database
d.
e-sourcing system
e.
None of the above.
48. A/An _____ is generally thought of as a decision support tool for collecting information from multiple
sources and making that information available to end users in a consolidated, consistent manner.
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
a.
database
b.
data warehouse
c.
EDI system
d.
e-catalog
e.
reverse auction
Easy
Analytic
49. A/An _____ records the part numbers or stock keeping units that all firms rely on to identify the thousands
of unique purchased entities within a system.
a.
open-order and past-due file
b.
bill of materials file
c.
engineering requirements file
d.
part file
e.
forecasted demand file
50. _____ is a communications standard that supports inter-organizational electronic exchange of common business
documents and information.
a.
MRP
b.
DRP
c.
SMAC
d.
RFID
e.
EDI
51. Which if the following is one of the basic components of an EDI system?
a.
A standard form.
b.
A translation capability.
c.
A mail service.
d.
All of the above.
e.
None of the above.
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
52. A _____ contains the products or services of one or more suppliers.
a.
sell-side system
b.
buy-side system
c.
deliver-side system
d.
third-party marketplace
e.
3PL
53. A _____ is controlled by buyers and is tied into their intranets and extra-nets.
a.
vertical portal
b.
horizontal portal
c.
third-party marketplace
d.
sell-side system
e.
buy-side system
54. A _____ is an independent firm that neither buys nor sells goods but seeks to facilitate the electronic
purchasing process through value enhancement.
a.
strategic alliance
b.
partnership
c.
third-party marketplace
d.
horizontal portal
e.
None of the above.
55. A/An _____ is typically organized around specific e-sourcing suite modules that interact with different
elements of the purchasing database, elements of the ERP system, and integration of data obtained through
external EDI or web-based communications with suppliers or customers.
a.
EDI system
b.
SRM system
c.
third-party marketplace
d.
sell-side system
e.
buy-side system
56. _____ is the determination of the dollar amount and volume of expenditures that an organization makes to
provide its products and services and support its operations.
a.
TCO
b.
Kanban
c.
Price forecasting
d.
Spend analysis
e.
Market analysis
57. Which of the following is not one of the spending reduction strategies used following a spend analysis?
a.
Consolidation of unrelated purchases.
b.
Consolidation of similar purchases.
c.
Reduction in the number of suppliers.
d.
Reduction of maverick spend.
e.
Increased use of more efficient contracting methods.
58. A _____ is a request to submit a proposal based on a set of specifications provided by a buyer.
a.
kanban
b.
reverse auction
c.
PO
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
d.
bill of materials
e.
RFQ
59. In a/an _____, prices are completely visible and revealed to all sellers; only the identity of the competitors
remains anonymous to the sellers.
a.
regular reverse auction
b.
rank reverse auction
c.
e-catalog
d.
third-party marketplace
e.
horizontal portal
60. In a/an _____, sellers are only told their relative rank and thus are not aware of their competitors’ prices.
a.
vertical portal
b.
progressive reverse auction
c.
regular reverse auction
d.
rank reverse auction
e.
None of the above.
61. Which of the following is not one of the benefits of a supplier performance module in an e-sourcing suite?
a.
Providing input into supplier selection considering total costs, not just price.
b.
Isolating supplier process inefficiencies.
c.
Improving total cycle times.
d.
Providing suppliers with reliable feedback on their historical performance.
e.
Updating a supplier’s physical address and contact information.
62. [A] _____ is a process in which all data files that include a specific address are automatically updated within the
system.
a.
Batch updating
b.
MRP
c.
Real-time updating
d.
Data bucket
e.
EDI system
63. _____ refers to the process of downloading all data buckets into the main system on a regularly scheduled
basis.
a.
DRP
b.
Batch updating
c.
DSS
d.
Real-time updating
e.
None of the above.
64. _____ is Internet-based, and users share software and other information that is provided to computers and
mobile devices on demand.
a.
ERP
b.
EDI
c.
Cloud computing
d.
A value-added network
e.
None of the above.
65. A _____ sells services to anyone on the Internet.
a.
semi-private cloud
b.
private cloud
Chapter 18 — Supply Chain Information Systems and Electronic Sourcing
c.
public cloud
d.
blog
e.
SMAC
66. A _____ is a proprietary network or a data center that supplies hosted services to a limited number of
people.
a.
social network
b.
public cloud
c.
microblog
d.
mobile cloud
e.
private cloud
67. _____ within the supply chain is the process of sharing critical data required to manage the flow of products,
services, and information in real time between suppliers and customers.
a.
Information visibility
b.
Tweeting
c.
EDI
d.
SRM
e.
CRM
68. _____ is the new enterprise IT model delivering an organization that is more connective, collaborative, real-
time, and productive.
a.
RFID
b.
SMAC
c.
EDI
d.
E-sourcing
e.
None of the above.
69. According to Gartner, _____ is high volume, high velocity, and/or high variety information assets that
require new forms of processing to enable enhanced decision making, insight discovery, and process
optimization.
a.
DMAIC
b.
SMAC
c.
RFID
d.
big data
e.
cloud computing