TEST BANK
CHAPTER 2: LOGISTICS AND INFORMATION TECHNOLOGY
Multiple Choice Questions (correct answers are bolded)
1. Which of the following is not a benefit to utilizing information in logistics?
2. How do data and information differ?
3. ___________ refers to the collection of large amounts of near-real-time data collected through
a variety of sources such as sensors and smart phones.
4. ___________ provide effective ways to process organizational business data, to perform
calculations, and to create documents.
5. The most relevant general software package for logisticians is ___________.
a. spreadsheets
6. ___________ help various stakeholders—employers, suppliers, customers—work together by
interacting and sharing information in many different forms.
7. What has emerged as the measuring stock for logistics information technology in the twenty-
first century?
8. Which of the following refers to a network of satellites that transmits signals that pinpoint the
exact location of an object?
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9. Electronic data interchange (EDI) represents what general type of information management
system?
10. ___________ refers to the computer-to-computer transmission of business data in a
structured format.
11. Automatic identification systems are an essential component in ___________.
12. The most popular automatic identification system currently in use is ___________.
13. Which of the following statements about radio-frequency identification (RFID) is false?
14. A logistics information system (LIS) begins with ___________.
15. All of the following statements about logistics information systems (LIS) are true except:
16. The primary advantage of ___________ is that it enables a firm to test the feasibility of
proposed changes at relatively little expense.
17. Which of the following is not a logistics-related decision support system?
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18. Warehouse management systems (WMS) represent an example of what general type of
information management system?
19. Which of the following is not a potential benefit of transportation management systems
(TMS)?
20. ___________ refers to the application of mathematical tools to large bodies of data in order
to extract correlations and rules.
21. ___________ refers to a computer-based discipline that leverages algorithms that can “learn”
from data.
22. ___________ create and maintain consistent data processing methods and an integrated
database across multiple business functions.
23. The origins of contemporary enterprise resource planning (ERP) systems can be traced back
to logistics and ___________.
24. Which of the following statements about enterprise resource planning (ERP) is false?
25. A general rule of thumb is that the actual time to implement enterprise resource planning
(ERP) systems may range from ___________ to ___________ times longer than the time
specified by the ERP vendor.
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26. Approximately ___________ percent of the world’s population currently uses the Internet.
27. Which of the following statements is false?
28. What has emerged as the most popular application of on-demand logistics software (cloud
computing)?
29. Which of the following is not a type of benefits that comes from electronic procurement?
30. In a reverse auction, ___________.
31. The Internet of things (IoT) is expected to drive value in the supply chain and logistics
disciplines through enhanced customer interactions and ___________.
32. ___________ has been identified as the biggest information technology challenge that
companies face today.
True-False Questions
1. The effective and efficient use of information allows organizations to either reduce costs or
efficient utilization of information for logistics management; Moderate; Application; AACSB
Category 3: Analytical thinking]
AACSB Category 3: Analytical thinking]
3. Big data refers to large amounts of near-real-time data collected through a variety of sources
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efficient utilization of information for logistics management; Easy; Concept; AACSB Category
3: Analytical thinking]
4. Office automation systems provide effective ways to process personal and organizational
Concept; AACSB Category 3: Analytical thinking]
5. A transaction processing system helps people work together by interacting and sharing
of information systems and their logistical applications; Moderate; Application; AACSB
Category 3: Analytical thinking]
6. The Internet has emerged as the measuring stick for logistics information technology during
types of information systems and their logistical applications; Moderate; Application; AACSB
Category 3: Analytical thinking]
7. Transportation companies that have implemented global positioning systems (GPS) have
reported increased worker productivity, reduced operating costs, and improved customer
their logistical applications; Difficult; Synthesis; AACSB Category 3: Analytical thinking]
8. Electronic data interchange (EDI) is an example of a logistics-related transaction processing
their logistical applications; Moderate; Application; AACSB Category 3: Analytical thinking]
9. Electronic data interchange (EDI) is no longer an important logistics technology in the twenty-
and their logistical applications; Easy; Application; AACSB Category 3: Analytical thinking]
10. The idea behind point-of-sale systems is to provide data to guide and enhance managerial
systems and their logistical applications; Moderate; Application; AACSB Category 3:
Analytical thinking]
11. Radio-frequency identification (RFID) is the most popular automatic identification system
systems and their logistical applications; Moderate; Application; AACSB Category 3:
Analytical thinking]
12. One prominent drawback to radio-frequency identification (RFID) involves privacy
their logistical applications; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
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13. A logistics information system (LIS) begins with a logistics manager requesting information
Moderate; Application; AACSB Category 3: Analytical thinking]
Synthesis; AACSB Category 3: Analytical thinking]
types of information systems and their logistical applications; Moderate; Application; AACSB
Category 3: Analytical thinking]
Moderate; Application; AACSB Category 3: Analytical thinking]
2.2: To distinguish between the general types of information systems and their logistical
applications; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
18. Activities that can be controlled by a warehouse management system (WMS) include
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
19. Correlation analysis uses sophisticated quantitative techniques to find “hidden” patterns in
20. Walmart and its vendors make extensive use of data mining to improve supply chain
information systems and their logistical applications; Easy; Application; AACSB Category 3:
Analytical thinking]
21. Artificial intelligence refers to a computer-based discipline that leverages algorithms that can
systems and their logistical applications; Easy; Concept; AACSB Category 3: Analytical
thinking]
22. The attractiveness of enterprise resource planning (ERP) systems comes from their potential
Moderate; Application; AACSB Category 3: Analytical thinking]
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23. The origin of enterprise resource planning (ERP) systems can be traced back to finance and
systems and their logistical applications; Moderate; Application; AACSB Category 3:
Analytical thinking]
24. A general rule of thumb is that the actual time to implement an enterprise resource planning
(ERP) system may range from 1.5 to 2 times longer than the time period specified by the ERP
their logistical applications; Moderate; Application; AACSB Category 3: Analytical thinking]
25. In recent years, enterprise resource planning (ERP) vendors have begun to provide high-
AACSB Category 3: Analytical thinking]
review how logistics supports online retailing; Moderate; Application; AACSB Category 3:
Analytical thinking]
To review how logistics supports online retailing; Easy; Application; AACSB Category 3:
Analytical thinking]
28. The smaller order quantities occasioned by online retailing tend to favor transport companies
how logistics supports online retailing; Moderate; Synthesis; AACSB Category 3: Analytical
thinking]
29. The return rates associated with online retailing are quite similar to those associated with
Application; AACSB Category 3: Analytical thinking]
30. In response to a study that indicated that 35 percent of avid online shoppers desire locations
with extended hours and not at their homes, UPS plans to install self-service parcel lockers in
supports online retailing; Moderate; Application; AACSB Category 3: Analytical thinking]
31. One reason for the popularity of on-demand software is that is pay-per-use formula allows
computing is being used to support logistics software usage; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
AACSB Category 3: Analytical thinking]
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Application; AACSB Category 3: Analytical thinking]
34. Electronic procurement uses the Internet to make it easier, faster, and less expensive for an
using electronic procurement to drive purchasing efficiency; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
AACSB Category 3: Analytical thinking]
36. The Internet of things (IoT) refers to the sensors and data-communication technology that is
managers; Moderate; Application; AACSB Category 3: Analytical thinking]
37. The Internet of things (IoT) is expected to drive value in the supply chain and logistics
Moderate; Application; AACSB Category 3: Analytical thinking]
38. Information technology should be regarded as a tool to help managers address organizational
39. Software viruses are viewed as the most important information technology issue that
Moderate; Application; AACSB Category 3: Analytical thinking]
information technology issues; Moderate; Synthesis; AACSB Category 3: Analytical thinking]