Chapter: Chapter07: Transaction Processing, Functional Applications, and Integration
Fill-in-the-blank
1. In _______________ processing, data are processed as soon as the transaction occurs.
Ans: _________
2. _______________ management deals with ordering, purchasing, receiving, and
shipping activities.
Ans: _________
3. _______________ systems are all the systems involved in the process of getting a
product or service to customers and dealing with all customers’ needs.
Ans: _________
4. In an inventory management system, when inventory volume falls to a certain level,
called the _______________the computer automatically generates a purchase order.
Ans: _________
5. To implement online transaction processing, _______________ files containing key
information about important business entities are placed on hard drives, where they are
directly accessible.
Ans: _________
6. Taxis in Singapore are tracked by a _______________ system, which is based on the
24 satellites originally set up by the U.S. government.
Ans: _________
7. The _______________ files containing information about activities concerning these
business entities, such as orders placed by customers, are held in online files until they
are no longer needed for everyday transaction processing activity.
Ans: _________
8. _______________ is a concept or philosophy that promotes the integration of various
computerized factory systems.
Ans: _________
9. A major advantages of computer integrated manufacturing (CIM) is its
_______________.
Ans: _________
Multiple Choice
1. _______________ monitors, collects, stores, processes, and disseminates information
for all routine core business transactions.
a) Decision support systems.
b) Executive information systems.
c) Transaction processing systems
d) Expert systems
e) Management systems
Ans: _________
2. Which of the following is NOT one of the major goals for computer-integrated
manufacturing?
a) simplification
b) automation
c) integration and coordination
d) data manipulation
e) none of the above
Ans: _________
3. PeachTree and Great Plains are well known vendors of:
a) integrated accounting software packages.
b) supply chain management software packages.
c) enterprise resource planning software packages.
d) customer relationship management software packages.
e) customer service management software packages.
Ans: _________
4. _______________software available from IBM, Siebel Systems, and Microstrategy,
Inc) is designed to help managers assess and improve the profit performance of their line
of business, products, distribution channels, sales regions, and other dimensions critical
to managing the enterprise.
a) Integrated accounting
b) Supply chain management
c) Enterprise resource planning
d) Profit performance analysis
e) Enterprise analysis
Ans: _________
5. _______________ are all the systems involved in the process of getting a product or
service to customers and dealing with all customers’ needs.
a) Delivery systems
b) Sales systems
c) Channel systems
d) Outbound logistics systems
e) Inbound logistics
Ans: _________
6. Which of the following is NOT a specific objective of TPS?
a) to allow for efficient and effective operation of the organization
b) to provide timely documents and reports
c) to increase the competitive advantage of the corporation
d) to reduce uncertainty that exists due to the generally long completion times
e) none of the above
Ans: _________
7. Functional systems share certain characteristics. Which of the following is NOT one of
those shared characteristics?
a) a functional system generally comprise of several smaller systems
b) these functional systems are always integrated with each other
c) these functional systems are supportive of decision making at the strategic level
d) these functional systems are supportive of decision making at the operational level
e) a functional system level
Ans: _________
8. Which of the following statements is NOT true about product lifecycle management
(PLM)?
a) It is a business strategy that enables manufacturers to control and share productrelated data.
b) PLM is a big step for an organization, requiring it to integrate a number of
different processes and systems.
c) Using a Web-based PLM tool, bike-maker Cannondale Corp. was able to design its
2003 model significantly faster.
d) PLM tools are currently offered by relatively unknown IT vendors.
e) none of the above
Ans: _________
9. Which of the following statements is NOT true about the limitations of mass
customization?
a) It requires a highly flexible production technology.
b) It requires an elaborate system for eliciting customers’ wants and needs.
c) It requires the use of computer integrated manufacturing (CIM) approach.
d) It requires strong direct-to-customer logistics system.
e) It has strong management control.
Ans: _________
10. _______________ are financial institutions that buy accounts receivable, usually at a
discount.
a) Factors
b) Discounters
c) Receivers
d) Payables
e) Interest
Ans: _________
11. Virtual close refers to the ability of a company to:
a) close its virtual storefront on short notice.
b) close its books on short notice.
c) almost close down its entire operations on short notice.
d) close electronic linkages with its business partners on short notice.
e) close accounts.
Ans: _________
12. Which of the following statements is NOT true about the financial value chain
management (FVCM) approach?
a) If the organization runs its operations at a higher-than-planned level, it is all right to
exceed the budgeted amounts for that plan.
b) If the organization runs its operations at a lower-than-planned level, it is likely to need
less money.
c) Financial analysis is combined with operations analysis to provide better financial
control.
d) All financial functions are analyzed with the exception of international trades.
e) none of the above
Ans: _________
13. Which of the following is NOT major characteristic of TPS?
a) processing of large amounts of data
b) large storage capacity requirements
c) providing of buyer-centric services
d) high reliability requirements
e) hands-off functionality
Ans: _________
14. Fast and effective order processing is recognized as a key to _______________.
a) generating revenue
b) customer satisfaction
c) order tracking
d) order fulfillment
e) order process tracking
Ans: _________
15. _______________ is a business strategy that enables manufacturers to control and
share product-related data as part of product design and development efforts and in
support of supply chain operations.
a) Product lifecycle management
b) Computer integrated manufacturing
c) Material requirements planning
d) Manufacturing resource planning
e) Material resource planning
Ans: _________
16. _______________ empowers the field sales force to close deals at the customer’s
office and to configure marketing strategies at home.
a) Computer integrated manufacturing
b) Transaction processing systems
c) Sales automation software
d) Sales force automation
e) Sales management automation
Ans: _________
17. A strategy, in which the supplier monitors inventory levels and replenishes when
needed, is called _______________.
a) vendor-managed inventory
b) virtually-managed inventory
c) inventory-on-demand
d) stocks-on-demand
e) virtual stock management
Ans: _________
18. Process-centric integration refers to integration solutions designed, developed, and
managed from a _______________ perspective.
a) business process
b) technical
c) middleware
d) both a and c
e) both a and b
Ans: _________
19. _______________ enables small businesses to rapidly increase sales and growth.
a) Sales automation software.
b) Sales force automation
c) Computer integrated manufacturing
d) Product lifecycle management
e) Sales cycle analysis
Ans: _________
20. _______________ is the financing of asset acquisitions, including the disposal of
major organizational assets.
a) Position inventory
b) Budgetary control
c) Inventory management
d) Capital budgeting
e) Loan management
Ans: _________
21. Customer behavior online can be tracked by:
a) databases.
b) cookies.
c) accounts.
d) web servers.
e) worms.
Ans: _________
22. _______________ is NOT a characteristic of a TPS.
a) Monitoring of past data
b) Processing information on a regular basis
c) Structured data
d) Low processing speed
e) none of the above
Ans: _________
23. Computer Aided Manufacturing provides all of the following features except:
a) simplification of manufacturing technologies.
b) flexibility.
c) separation of various computerized factory systems.
d) automation of manufacturing processes.
e) rigidity.
Ans: _________
24. Functional information systems share the following characteristics, except:
a) composed of smaller systems.
b) integrated or independent.
c) interfacing.
d) supportive of different levels.
e) composed of larger systems.
Ans: _________
25. TPS usually contains:
a) small amounts of external data.
b) small amounts of internal data.
c) large amount of external data.
d) large amount of internal data.
e) large data trough-put.
Ans: _________
26. Just in Time is a business model that attempts to do all of the following EXCEPT:
a) minimize inventory.
b) decrease the amount of different products sold.
c) increase rate of return.
d) cut storage costs.
e) cut inventory costs.
Ans: _________
27. Choose one that is not a characteristic of a functional information system.
a) Composed of smaller systems
b) Integrated or independent
c) Interfacing
d) Supply chain
e) Resource chain
Ans: _________
28. _______________ is the financial expression of an organizational plan.
a) Accounting module
b) Budget
c) E-bond
d) Factoring online
e) E-factor
Ans: _________
29. A business process that links all the procurement from suppliers, the transformation
activities inside a firm, and the distribution of goods or services to customers via
wholesalers and retailers is called a:
a) supply chain.
b) value chain.
c) integrated approach.
d) budget.
e) factor.
Ans: _________
30. _______________ determines how much inventory to keep.
a) Inventory management
b) Reorder point
c) Quality control
d) Inventory
Ans: _________
31. With ________ ,when inventory falls to a certain level, the computer automatically
generates a purchase order.
a) point of repurchase
b) reorder point
c) order generator
d) point of no return
e) B/E point
Ans: _________
32. With __________ the supplier monitors the inventory level and ship when needed,
eliminating the need for sending purchase orders.
a) VMI
b) VMM
c) VML
d) VMR
e) VDS
Ans: _________
33. The software that facilitates the plan for acquiring parts, sub-assembles, or materials
in the case of independent items is called:
a) MRP.
b) MRR.
c) MRL.
d) TQM.
e) DSS.
Ans: _________
34. A POM system called _______________ adds functionalities to a regular MRP.
a) MRP
b) MRP11
c) MRG
d) MRC
e) ERP
Ans: _________
35. ___________ is an approach that attempts to minimize waste of all kinds and to
continuously improve processes and systems.
a) JIT
b) JIP
c) Waste no systems
d) JII
e) ERP
Ans: _________
36. ____________ is a concept or philosophy that promotes the integration of various
computerized factory systems.
a) PLM
b) CIM
c) WMS
d) JIT
e) ERP
Ans: _________
37. _____________ is a business strategy that enables manufacturers to control and
share product related data as a part of product design and development efforts and in
support of supply chain efforts.
a) CIM
b) PLM
c) CIIM
d) PIM
e) ERP
Ans: _________
38. ____________ are all the systems involved in the process of getting a product or
service to customers and dealing with customers needs.
a) Channel systems
b) Channel data base
c) Systems
d) Data base
e) Data warehouse
Ans: _________
39. Providing sales people with mobile devices, access to databases, and so on.
a) sales force automation
b) sales force
c) sales force administration
d) force for sales
e) force automation
Ans: _________
40. A major reason organizations go out of business is their inability to:
a) forecast.
b) secure sufficient cash flow.
c) not producing enough materials.
d) a and b
e) a and c
Ans: _________
41. Marketing and sales information system deal with all activities related to
_______________.
a) finance
b) auditing
c) market research
d) distribution
e) a and b
Ans: _________
True/False
1. Transaction processing systems only process data in batches.
Ans: _________
2. Expense management automation refers to systems that automate data entry and
processing of travel and entertainment expenses.
Ans: _________
Short Answer
1. Discuss the importance of TPS.
2. What is inventory management and what are the costs involved in determining
adequate inventory levels?
3. What are channel systems?
4. How is Sales Automation software helpful to small businesses?
5. What is batch processing?
6. What are just-in-time systems?
7. What is product life cycle management?
8. What is computer-integrated manufacturing (CIM)?
9. Compare batch processing with online processing.
10. What is process-centric integration?
Essay
1. Discuss the major characteristics of functional information systems.
2. Discuss the major characteristics of transaction processing systems.
3. What characteristics complicate the management of a project?
4. Discuss manufacturing resource planning (MRP II).
5. Discuss material requirements planning (MRP).