Multiple-Choice Questions
1.
What unique approach did Whirlpool employ in defining a solution?
a.
b.
c.
d.
Seeing the supply chain as originating with suppliers
Seeing the supply chain as a way to focus on customers
Seeing the supply chain as an extension of its sales practices
Seeing the supply chain as a tool secondary to knowledge management
Reference: p. 355
2.
(Analysis)
Why is overstocking warehouses not an effective solution for a problem of low availability?
a.
b.
c.
d.
It slows product time to market.
It is an inefficient use of raw materials.
It increases sales costs.
It increases inventory costs.
Reference: p. 362
3.
A suite of integrated software modules for finance and accounting, human resources,
manufacturing and production, and sales and marketing that allows data to be used by
multiple functions and business processes best describes:
a.
b.
c.
d.
process management software.
ERP systems.
groupware.
application software.
Reference: p. 358
4.
This software is built around thousands of predefined business processes:
a.
b.
c.
d.
process management software.
collaboration software.
enterprise software.
groupware.
Reference: p. 359
5.
In order to achieve maximum benefit from an enterprise software package, a business:
a.
b.
c.
d.
customizes the software to match all of its business processes.
uses only the processes in the software that match its own processes.
changes the way it works to match the software’s business processes.
selects only the software that best matches its existing business processes.
Reference: p. 359
6.
Supply chain complexity and scale:
a.
b.
c.
d.
affect both very small companies and large, global corporations.
were difficult to address before the Internet.
result when firms produce complex products and services.
result when firms implement full-scale supply-chain management systems.
Reference: p. 360
7.
IHOP purchased a middleware software package to integrate its data because:
a.
b.
c.
d.
middleware packages are built for adaptability.
packaged software is less expensive.
they were able to customize their business processes to this software.
this packaged software addressed their unique needs.
Reference: p. 370
8.
A company’s suppliers, supplier’s suppliers, and the processes for managing relationships
with them is:
a.
b.
c.
d.
the supplier’s internal supply chain.
the external supply chain.
the upstream portion of the supply chain.
the downstream portion of the supply chain.
Reference: p. 361
9.
Inefficiencies arise in a supply chain because of:
a.
b.
c.
d.
inaccurate or untimely information.
poor integration between systems of suppliers, manufacturers, and distributors.
inefficient or inaccurate MIS.
unforeseeable events.
Reference: p. 361
10.
A scheduling system for minimizing inventory by having components arrive exactly at the
moment they are needed and finished goods shipped as soon as they leave the assembly line
best describes which strategy:
a.
b.
c.
d.
just-in-time strategy.
stockless inventory.
ASAP inventory.
replenishment-only inventory.
Reference: p. 362
11.
Supply chain software can be classified as either:
a.
b.
c.
d.
supply chain source systems or supply chain recovery systems.
supply chain build systems or supply chain delivery systems.
supply chain planning systems or supply chain build systems.
supply chain planning systems or supply chain execution systems.
Reference: p. 364
12.
Supply chain planning systems:
a.
b.
c.
d.
track the physical status of goods.
identify the transportation mode to use for product delivery.
track the financial information involving all parties.
track the status of orders.
Reference: p. 364
13.
Systems to manage the flow of products through distribution centers and warehouses to
ensure that products are delivered to the right locations in the most efficient manner best
describes supply chain __________ systems.
a.
b.
c.
d.
demand
delivery
planning
execution
Reference: p. 364
14.
Capabilities of supply chain planning systems would not include:
a.
b.
c.
d.
replenishment.
advanced scheduling and manufacturing planning.
demand planning.
order planning.
Reference: p. 365
15.
Some supply chain integration can be developed inexpensively by:
a.
b.
c.
d.
adapting to the business processes embedded in SCM packages.
using Internet technology
adapting PRM modules
customizing ERP software
Reference: p. 365
16.
A build-to-order supply-chain model is also called a:
a.
b.
c.
d.
supply-driven model
demand-driven model
replenishment-driven model
push-based model
Reference: p. 366
17.
Companies with effective supply chain management systems can expect:
a.
b.
c.
d.
improved customer service and responsiveness.
cost reduction.
reduced inventory levels.
all of the above.
Reference: p. 368
18.
Which of the following enterprise software deals with employee issues such as setting
objectives, employee performance management, performance-based compensation, and
employee training?
a.
b.
c.
d.
Enterprise systems software
Employee relationship management software
Supply chain management software
Customer relationship management software
Reference: p. 371
19.
What are the three general business functions that CRM software serves?
a.
b.
c.
d.
ERM, PRM, and CRM
Sales, customer service, and marketing
Sales and marketing, human resources, and finance and accounting
Sales and marketing, customer service, and human resources
Reference: p. 371
20.
Which capability would be classified as an operational CRM application?
a.
b.
c.
d.
SFA modules
Call center automation modules
Web-based customer self-service modules
All of the above
Reference: p. 374
21.
Which type of enterprise software would allow you to analyze CLTV?
a.
b.
c.
d.
PRM
Operational CRM
Analytical CRM
ERM
Reference: p. 375
22.
The measurement of the number of customers who stop using or purchasing products or
services from a company is called:
a.
b.
c.
d.
switching costs.
churn rate.
CLTV.
switching rate.
Reference: p. 375
23.
Evaluation
Why is an order-to-cash service considered a complex process to implement as an enterprise
application?
a.
b.
c.
d.
It is a modern, Internet-based concept that legacy systems typically do not provide.
It needs information from many different functions of the enterprise.
It requires the use of XML and Web services.
All of the above
Reference: p. 379
24.
From your reading of the Limited Brands case study, what was the cause of 400 merchandise
trailers showing up at the parking lot of a distribution center that was designed to hold only
150 trailers?
a.
b.
c.
d.
Legacy applications used for SCM
Use of a complex, little-understood supply-chain execution system
Hundreds of SCM applications on different platforms being used
Lack of real-time reporting capabilities
Reference: pp. 385–386
25.
What was the most important impact of Major League Baseball’s Web site development efforts?
a.
b.
c.
d.
Created a strategic advantage for major league baseball
Increased the efficiency of baseball operations
Strengthened the relationship with customers and suppliers
Made it possible for major league baseball to survive
Reference pp 389–390
26.
Since the dot-com bubble burst of 2001, e-commerce revenues:
a.
b.
c.
d.
have essentially stagnated.
show signs of stabilizing.
have returned to solid growth.
have returned to exponential growth.
Reference: p. 392
27.
Which of the following is not one of the unique features of e-commerce technology?
a.
b.
c.
d.
Information density
Information asymmetry
Richness
Interactivity
Reference: p. 394
28.
The lowered costs of information storage, processing, and communication, along with the
improvement of data quality has resulted in which unique quality of e-commerce?
a.
b.
c.
d.
Information density
Richness
Customization
Interactivity
Reference: p. 394
29.
Information density refers to:
a.
b.
c.
d.
the complexity and content of a message.
the total amount and quantity of information delivered to consumers by merchants.
the total amount and quantity of information available to all market participants.
the amount of information available to reduce price transparency.
Reference: p. 395
30.
Information __________________ exists when one party in a transaction has more
information that is important for the transaction than the other party.
a.
b.
c.
d.
transparency
asymmetry
symmetry
imbalance
Reference: p. 396
31.
Varying a product’s price according to the supply situation of the seller is called:
a.
b.
c.
d.
menu pricing.
supply pricing.
dynamic pricing.
asymmetrical pricing.
Reference: p. 397
32.
Reducing the business process layers in a distribution channel is called:
a.
b.
c.
d.
disintermediation.
BPR.
market segmentation.
network effects.
Reference: p. 397
33.
Digital goods are goods that:
a.
b.
c.
d.
are produced digitally.
are sold over digital networks.
are delivered digitally.
all of the above.
Reference: p. 398
34.
Which of the following Internet business models does Amazon.com use?
a.
b.
c.
d.
Information broker
Transaction broker
Online service provider
Virtual storefront
Reference: p. 399
35.
Internet content providers:
a.
b.
c.
d.
generate from directing buyers to sellers.
save users money and time by processing online sales dealings.
provide a digital environment where buyers and sellers can establish prices for products.
create revenue by providing digital content over the Web.
Reference: p. 399
36.
Transaction brokers:
a.
b.
c.
d.
generate revenue from advertising or from directing buyers to sellers.
save users money and time by processing online sales dealings.
provide a digital environment where buyers and sellers can establish prices for products.
sell physical products directly to consumers or individual businesses.
Reference: p. 399
37.
Online marketplaces:
a.
b.
c.
d.
save users money and time by processing online sales dealings.
provide a digital environment where buyers and sellers can establish prices for products.
create revenue by providing digital content over the Web.
sell physical products directly to consumers or individual businesses.
Reference: p. 399
38.
Pure-play business models:
a.
b.
c.
d.
are primarily used in business-to-business electronic commerce.
do not sell a physical product.
are extensions of traditional bricks-and-mortar businesses.
did not have an earlier existing bricks-and-mortar business before they went to the
Internet.
Reference: p. 404
39.
eBay is an example of:
a.
b.
c.
d.
a click-and-mortar business.
C2C electronic commerce.
B2C electronic commerce.
an online exchange.
Reference: p. 404
40.
Businesses retailing products and services directly via the Internet to individual consumers
best describes:
a.
b.
c.
d.
B2B electronic commerce.
C2C electronic commerce.
M-commerce.
B2C electronic commerce.
Reference: p. 404
41.
Consumers selling goods and services electronically to other consumers best describes:
a.
b.
c.
d.
disintermediation.
C2C electronic commerce.
M-commerce.
B2C electronic commerce.
Reference: p. 404
42.
The presentation of Web pages tailored to a customer, based on the gathering of demographic
information provided by the customer, is called:
a.
b.
c.
d.
interactive marketing.
personalization.
collaborative filtering.
localization.
Reference: p. 406
43.
Tools that record customer activities at Web sites and store them in a log for further analysis
are called:
a.
b.
c.
d.
clickstream tracking tools.
customer tracking tools.
collaborative filtering tools.
filtering tools.
Reference: p. 405
44.
Tools that compare user behavior and interests to make purchasing recommendations to users
are called:
a.
b.
c.
d.
clickstream tracking tools.
customer tracking tools.
collaborative filtering tools.
filtering tools.
Reference: p. 406
45.
The organizational department responsible for handling customer service issues is the:
a.
b.
c.
d.
service center.
customer support.
call center.
sales department.`1
Reference: p. 409
46.
The process of sourcing goods and materials, negotiating with suppliers, paying for goods,
and making delivery arrangements is called:
a.
b.
c.
d.
procurement.
e-procurement.
supply chain management.
electronic commerce.
Reference: p. 410
47.
An extranet that links a large firm to its suppliers and other key business partners is called
a(n):
a.
b.
c.
d.
private industrial network.
e-hub.
marketspace.
exchange.
Reference: p. 411
48.
A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is
called a(n):
a.
b.
c.
d.
exchange.
vertical market.
private exchange.
e-hub.
Reference: p. 412
49.
The electronic payment system in which users make micropayments and purchases on the
Web, accumulating a debit balance on their credit card or telephone bill is called a(n)
_______ payment system.
a.
b.
c.
d.
smart card
accumulated balance digital
stored value
digital cash
Reference: p. 416
50.
The electronic payment system that uses a credit card-size plastic card that stores digital
information and that can be used for electronic payments in place of cash is called:
a.
b.
c.
d.
digital cash.
e-cash.
digital wallet.
smart card.
Reference: p. 416
51.
Analysis
What capability of its new knowledge management system allowed Southern Company to
experience greater productivity from its engineers?
a.
b.
c.
d.
Knowledge repository
Expertise location and management
Intelligent techniques
Learning management
Reference: p. 429–430
52.
The flow of events or transactions captured by an organization’s system describes:
a.
b.
c.
d.
information.
data.
wisdom.
knowledge.
Reference: p. 432
53.
Expertise and experience of organizational members that has not been formally documented
best describes:
a.
b.
c.
d.
wisdom.
information.
data.
tacit knowledge.
Reference: p. 432
54.
These systems digitize, index, and tag documents according to a coherent framework.
a.
b.
c.
d.
Wikis
CAD
Document management
LMS
Reference: p. 435
55.
The senior executive responsible for the firm’s knowledge management program is the:
a.
b.
c.
d.
CTO.
CIO.
CKO.
CEO.
Reference: p. 436
56.
These are specialized systems built for engineers, scientists, and other knowledge workers
charged with discovering and creating new knowledge for a company:
a.
b.
c.
d.
KWS
LMS
Wikis
CAD systems
Reference: p. 436
57.
Fuzzy logic is a type of:
a.
b.
c.
b.
data mining.
neural network.
intelligent technique.
business intelligence.
Reference: p. 437
58.
Knowledge that already exists inside a firm in the form of formal reports or presentations is
categorized as:
a.
b.
c.
d.
structured knowledge.
semistructured knowledge.
tacit knowledge.
unstructured knowledge.
Reference: pp. 437–438
59.
A collection of internal and external knowledge in a single location for more efficient
management and utilization by the organization is called a:
a.
b.
c.
d.
KWS.
knowledge repository.
document database.
document management system.
Reference: p. 438
60.
Once a knowledge taxonomy is developed, documents are all __________ with the proper
classification.
a.
b.
c.
d.
tagged
linked
tupled
referenced
Reference: p. 443
61.
Which of the following is a collaboration tool used to support knowledge management
systems?
a.
b.
c.
d.
Blogs
Wikis
Social bookmarking
All of the above
Reference: pp. 445–447
62.
Most knowledge workers require specialized knowledge work systems, but they also rely on:
a.
b.
c.
d.
office systems.
schools and universities.
imaging systems.
data transferring systems.
Reference: p. 448
63.
A ________________________ is very important to a knowledge worker’s system.
a.
b.
c.
d.
careful filing system
financial analysis system
CAD capability
user-friendly interface
Reference: p. 449
64.
_______________________________ often are designed and optimized for the specific
tasks to be performed.
a.
b.
c.
d.
Graphics programs
Knowledge workstations
Virtual simulators
CAD stations
Reference: p. 449
65.
Which of the following is a type of intelligent technique?
a.
b.
c.
d.
Knowledge networks
Case based reasoning
Computer-aided design
VRML
Reference: p. 451–461
66.
Virtual reality applications for the Web use a standard called:
a.
b.
c.
d.
CADDIS
VRML
KWSVR
TCP/IP
Reference: p. 450
67.
Technology that consists of computer-based systems that attempt to emulate human behavior
is called:
a.
b.
c.
d.
fuzzy logic.
neural networks.
AI technology.
genetic algorithms.
Reference: p. 452
68.
Expert systems:
a.
b.
c.
d.
solve problems too difficult for human experts.
are based on DO WHILE rules.
work in very limited domains.
share characteristics with mainframe computing.
Reference: p. 454
69.
In this technique, descriptions of past experiences of human specialists are stored in a
database for later retrieval when the user encounters a situation with similar characteristics.
a.
b.
c.
d.
CBR
Fuzzy logic
Data mining
LMS
Reference: p. 455
70.
Hardware and software that attempts to emulate the processing patterns of the biological
brain best describes:
a.
b.
c.
d.
neural network.
expert system.
case-based reasoning.
fuzzy logic.
Reference: p. 457
71.
What type of intelligent techniques helped Procter & Gamble determine the most efficient
methods for their trucks to deliver goods?
a.
b.
c.
d.
Fuzzy logic
Intelligent agents
Genetic algorithms
None of the above
Reference: p. 460
72.
Analysis
To automate routine tasks to help firms search for and filter information for use in electronic
commerce and supply chain management a firm would most likely use:
a.
b.
c.
d.
CAD systems.
virtual reality systems.
fuzzy logic systems.
intelligent agents.
Reference: p. 460
73.
Analysis
According to your reading of the text, Procter & Gamble’s use of DSS illustrates the use of
information systems to implement which common business strategy?
a.
b.
c.
d.
Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy
Reference: p. 471
74.
Where there is no well-understood or agreed-on procedure for making a decision, it is said to
be:
a.
b.
c.
d.
undocumented.
unstructured.
documented.
semistructured.
Reference: p. 474
75.
The type of decision that can made by following a definite procedure is called a(n):
a.
b.
c.
d.
structured decision.
unstructured decision.
semistructured decision.
procedural decision.
Reference: p. 474
76.
Analysis
Which type of decision is deciding whether to introduce a new product line?
a.
b.
c.
d.
Structured
Unstructured
Recurring
Nonrecurring
Reference: pp. 474–475
77.
Which type of decision is more prevalent at lower organizational levels?
a.
b.
c.
d.
Procedural
Unstructured
Structured
Semistructured
Reference: p. 475
78.
Which type of decision is most common at higher levels of management?
a.
b.
c.
d.
Semistructured
Unstructured
Structured
Undocumented
Reference: p. 475
79.
Rank-and-file employees tend to make more of these types of decisions:
a.
b.
c.
d.
semistructured.
unstructured.
structured.
procedural.
Reference: p. 475
80.
Which phase of decision making finds or recognizes a problem, need, or opportunity?
a.
b.
c.
d.
Design
Intelligence
Choice
Implementation
Reference: p. 476
81.
In contrast to the classical model of management, behavioral models see the actual behavior
of managers as being __________.
a.
b.
c.
d.
more systematic
more informal
more reflective
more well organized
Reference: p. 477
82.
The role of liaison falls into which of Mintzberg’s managerial classifications?
a.
b.
c.
d.
Decisional
Informational
Interpersonal
Symbolic
Reference: p. 478
83.
The role of entrepreneur falls into which of Mintzberg’s managerial classifications?
a.
b.
c.
d.
Decisional
Informational
Interpersonal
Symbolic
Reference: p. 478
84.
Which of the following managerial roles is not supported by information systems?
a.
b.
c.
d.
Spokesperson
Resource allocator
Leader
Nerve center
Reference: p. 478
85.
The concern that the structure of data is consistent within an information source reflects
which quality dimension of information?
a.
b.
c.
d.
Accuracy
Integrity
Validity
Consistency
Reference: p. 479
86.
Analysis
An information system for a building company that tracks construction costs for various
projects across the United States would be categorized as a type of:
a.
b.
c.
d.
DSS.
MIS.
GIS.
CDSS.
Reference: p. 480
87.
These systems support decision making by enabling users to extract useful information that
was previously buried in large quantities of data:
a.
b.
c.
d.
GSS.
ESS.
TPS.
DSS.
Reference: p. 481
88.
Which type of model asks what-if questions repeatedly to determine the impact on outcomes
of changes in one or more factors?
a.
b.
c.
d.
Optimization
Sensitivity analysis
Statistical
Forecasting
Reference: p. 482
89.
Which type of model is used to help managers use historical data to estimate future
conditions and sales figures resulting from these conditions?
a.
b.
c.
d.
Optimization
Sensitivity analysis
Statistical
Forecasting
Reference: p. 482
90.
The chapter case on Renault’s information systems illustrates the use of which type of
system to move to a pull-based model for its supply chain?
a.
b.
c.
d.
CDSS
DSS
GIS
GDSS
Reference: p. 488
91.
This information system uses data visualization technology to analyze and display data for
planning and decision making in the form of digitized maps.
a.
b.
c.
d.
GIS
DSS
MIS
TPS
Reference: p. 490
92.
A system that uses data mining to guide decisions about customer retention can be
categorized as a:
a.
b.
c.
d.
CDSS
MIS
DSS
ESS
Reference: p. 490
93.
Analysis
Dell Computer’s online tools for selecting and customizing a new PC are a type of:
a.
b.
c.
d.
DSS.
CDSS.
Web-based GIS.
Intelligent agent.
Reference: p. 491
94.
Analysis
As discussed in the chapter case, the COMPSTAT system developed by the New York City
Police was a type of:
a.
b.
c.
d.
CDSS.
PDSS.
GIS.
GDSS.
Reference: p. 492
95.
The easy use of graphics in an ESS allows the user to:
a.
b.
c.
d.
look at more data in less time with greater clarity.
use creative analysis.
quickly manipulate TPS and historical data.
decentralize decision making.
Reference: pp. 493–504
96.
Executives need a wide range of __________________ as well as internal data.
a.
b.
c.
d.
structured
informal
system
external
Reference: p. 494
97.
A well-designed ESS will allow management to:
a.
b.
c.
d.
have greater span of control.
allow lower levels of management greater control.
lessen the need to review lower levels of operation.
all of the above.
Reference: p. 494
98.
The traditional measurement of value for companies includes financial metrics such as:
a.
b.
c.
d.
double-entry bookkeeping.
ING metrics analysis.
balanced scorecards.
return on investment.
Reference: p. 495
99.
An essential component in the ability of GDSS to contribute to a collaborative environment is:
a.
b.
c.
d.
allowing users to contribute simultaneously.
using structured methods for evaluating ideas.
identifying users informally.
guarantee of user anonymity.
Reference: p. 498