Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 11 Supply Chain Management
1) A complete SCM solution includes customers, service providers and partners.
2) SCM focuses on a few key parties and processes.
3) SCM stands for Supply Change Management.
4) SCM integrates supply and demand management within and across companies.
5) SCM is an outgrowth of Porter’s concept of the “value chain.”
6) Supply chain processes can be divided into primary and tertiary activities.
7) A company’s supply chain strategy and its competitive strategy must be aligned in order for
the company to be successful.
8) The supply chain has minimal impact on the firm’s value chain.
9) As companies work to focus on core competencies and become more flexible, they have
reduced their ownership of raw material sources and distribution channels.
10) Traditionally different departments such as marketing, purchasing, and manufacturing all
shared the same objectives and worked together.
11) There is basically only one general type of supply chain.
12) The inventory system is one of the key drivers of supply chain performance.
13) The two main types of facilities are functional sites and storage sites.
14) In general, increasing the number of facilities increases the total transportation cost.
15) Maintaining a large inventory generally increases the likelihood of a stock out for that
product.
16) The service industry has no finished goods inventory.
17) The type of transportation used by a company will help to determine the location of facilities
in the supply chain.
18) Information is not a major driver of supply chain effectiveness because it does not have a
physical presence.
19) Supply chains exist in both service and manufacturing organizations.
20) Labor utilization is one of the three types of flows in a typical supply chain.
21) Many companies are now using the Internet as part of their SCM solution.
22) In SCM software, planning applications are used to track the physical status of goods.
23) Procurement is the B2C purchase and sale of supplies and services.
24) Warehousing and inventory control functions are being increasingly outsourced to logistics
partners.
25) The order fulfillment process produces and supplies products to the distribution channels
based on past forecasts or POS data.
26) In the retail industry, product returns are a big issue and must be included in the management
of the supply chain.
27) Failure to consolidate the forecasting information along the supply chain will result in the
Marketing Effect for an organization.
28) More brick-and-mortar manufacturers are adding e-commerce capabilities, and are facing
new challenges such as the individual delivery of products.
29) CRM uses e-business concepts and Web technologies to manage inventory and information
beyond the organization, upstream and downstream.
30) e-SCM unites all the steps in the business cycle, from initial product design until a finished
product is delivered to the customer.
31) Software that supports collaboration among groups of people over networks is called VPNs.
32) The PMO system can send sales and inventory data directly from the retail store to the
warehouse.
33) e-SCM is the use of Web-based technology to support the key procurement processes.
34) Ariba is a company that offers procurement solutions.
35) Supply webs, also known as exchanges, are virtual locations where buyers and sellers can
meet.
36) In an auction, a company post requests for bids on supplying specific quantities of a
particular product.
37) In today’s world, most companies in-source the handling of e-logistics.
38) Because there is considerable overlap between SCM and e-SCM systems, there has been a
recent surge in integrated solutions available on the market.
39) Until the late 1990’s the focus of organizations was on improving their external efficiency.
40) As opposed to ERP systems, SCMs are oriented to supporting ________ business processes.
A) core
B) transactional
C) inter-organizational
D) adaptive
41) As SCMs matured, they were found to have significant overlap with ________ systems.
A) CRM
B) ERP
C) data warehouse
D) RFID
42) ERP applications help make SCMs more effective by making ________ easier and by
providing real-time information.
A) decision-making
B) system design
C) security planning
D) data sharing
43) Because ERP systems provide ________ information, decisions such as ordering raw
materials can be based on actual inventory data.
A) real-time
B) processed
C) supplier
D) reverse auction
44) ERP systems are being ________ to take advantage of the Internet revolution.
A) expanded
B) web-enabled
C) reengineered
D) reverse engineered
45) ERP vendors are adding more ________ functionality to their products and this is helping to
blur the line between them.
A) data mining
B) system security
C) SCM
D) SFA
46) The joint design of products is an element associated with the ________ dimension of supply
chain integration.
A) synchronized planning
B) information integration
C) workflow coordination
D) new business model
47) The coordination of production planning and operations is an element associated with the
________ dimension of supply chain integration.
A) synchronized planning
B) information integration
C) workflow coordination
D) new business model
48) The direct sharing of real-time information is an element associated with the ________
dimension of supply chain integration.
A) synchronized planning
B) information integration
C) workflow coordination
D) new business model
49) Logistics restructuring is an element associated with the ________ dimension of supply
chain integration.
A) synchronized planning
B) information integration
C) workflow coordination
D) new business model
50) Planning ________ refers to the joint design and execution of plans for product introduction,
forecasting, and replenishment.
A) design
B) synchronization
C) approval
D) collaboration
51) Smoothing out and automating the procurement activities between a manufacturer and a
supplier is an example of:
A) BPR.
B) data mining analysis.
C) information collaboration.
D) workflow coordination.
52) Allowing a vendor to check on your company’s product inventory and then automatically
generating a purchase order is an example of a(n) ________ activity in the procurement process.
A) data mining
B) phishing
C) workflow
D) value chain
53) It would be much easier to integrate ERP and SCM applications if all the members of the
supply chain adhered to:
A) strict security protocols.
B) standard data formats.
C) best practices.
D) open standards.
54) If two supply chain partners want to link up their ERP systems and they are using different
ERP software, they must either purchase or develop the ________ needed to connect them.
A) test data
B) servers
C) best practices
D) middleware
55) With globalization and the increase in mergers and acquisitions, ________ has become an
important approach for integrating the disparate systems and data.
A) ERP
B) EAI
C) SCM
D) CRM
56) With the introduction of ________ models such as EJB, DCOM, and CORBA, application
integration has gotten easier.
A) IT
B) marketing
C) component-based
D) EAI
57) DCOM and CORBA make application integration easier by providing a standard set of:
A) protocols.
B) data conversion formats.
C) user profiles.
D) APIs.
58) CORBA/IIOP and ________ are the two main protocols for object communication across
networks, including the Internet.
A) DCOM
B) EJB
C) API
D) COM
59) ________ is the technology at the heart of the SOAP communication protocol that helps
define a new way for processes on different systems to communicate.
A) Database
B) XML
C) DCOM
D) SCM
60) ________ is the first phase of the Enterprise Application Integration process.
A) Solution outline
B) Architecture
C) Design
D) Implementation
61) ________ is not a benefit of Enterprise Application Integration.
A) Increased efficiency
B) Lower costs
C) Expanding the diversity of data sets
D) Improved customer service
62) The success of SCM integration often depends more on ________ and on arriving at an
agreed policy between trading partners, rather than on sophisticated information technology.
A) networks
B) protocols
C) communication
D) standardization
63) In a supply chain, ________ are either production sites or warehouses.
A) networks
B) suppliers
C) facilities
D) components
64) Carrying a large inventory may improve customer service but will also increase the cost of
________ inventory.
A) producing
B) shipping
C) auditing
D) holding
65) The ________ process responds to customer demand by managing orders, and storing and
delivering finished goods.
A) manufacturing
B) order completion
C) order fulfillment
D) marketing
E) none of the above
66) The ________ process uses past forecasts to produce and supply products for the company’s
distribution channels.
A) manufacturing
B) order completion
C) order fulfillment
D) marketing
E) none of the above
67) In a physical distribution, the ________ is the final destination of a marketing channel.
A) vendor
B) customer
C) supplier
D) marketeer
E) none of the above
68) The most important ingredient in successful e-SCM is the ________ of partners, suppliers,
and employees.
A) dedication
B) order completion
C) order fulfillment
D) marketing
E) none of the above
69) The company’s local area network, or ________, which is behind the company firewalls, is
an important component of e-SCM.
A) extranet
B) intranet
C) internet
D) WAN
E) none of the above
70) ________ are important components for connecting external supply chain partners and are
usually secured via a VPN.
A) Extranets
B) Intranets
C) Internets
D) WANs
E) none of the above
71) The corporate ________ serves as a gateway to a corporate website that enables
collaboration and access to company information.
A) extranet
B) portal
C) internet
D) WAN
E) none of the above
72) To shorten the time it takes to bring a new product to market, collaborative design and
product development among the parties in the supply chain is ________.
A) minimal
B) never done
C) unlimited
D) crucial
E) none of the above
73) On-line buyers want to purchase a product on-line and also be able to ________ that
shipment until it arrives at their doorstep.
A) avoid paying for
B) ignore
C) track
D) forget about
E) none of the above
74) Collaborative planning involves a shared ________ between business partners.
A) contract
B) forecast
C) project
D) attorney
E) none of the above
75) Collaborative planning is difficult since it involves ________ from multiple parties across
different companies.
A) output
B) input
C) processes
D) data
E) all of the above
76) What is supply chain management (SCM)? How is it an outgrowth of Porter’s value chain
concept?
77) Describe some of the potential benefits of SCM.
78) How did Wal-Mart integrate RFID technology into their SCM system?
79) What are the four main drivers of SCM performance?
80) How are the different facilities integrated into the supply chain network?
81) Describe the different “flows” in a supply chain network.
82) How have the Internet and Web-based applications changed SCM?
83) What are some of the processes supported by SCM?
84) What are the components of E-SCM?