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Chapter 17Information Technology and the Supply ChainTrue/False1. Information is crucial to the performance of a supply chain because it provides the basis upon which supply chain managers make decisions.Answer: TrueDifficulty: Easy2. Information is the supply chain driver that serves as the glue allowing the other three drivers to work together to create an integrated, coordinated supply chain.Answer: TrueDifficulty: Moderate3. Information makes the supply chain visible to a manager so that he can make decisions to improve the supply chains performance.Answer: TrueDifficulty: Moderate4. Information is not necessary for management to make decisions over a broad scope that crosses both functions and companies.Answer: TrueDifficulty: Easy5. Information must be 100 percent correct in order to make good decisions.Answer: FalseDifficulty: Moderate6. To make good decisions, a manager needs to have accurate information regardless of how long it takes to acquire it.Answer: FalseDifficulty: Hard7. Often companies will have large amounts of data that are not helpful with decision making.Answer: TrueDifficulty: Moderate8. Information is only a key ingredient at each stage of the supply chain, not within each phase of supply chain decision making.Answer: FalseDifficulty: Moderate9. The driver of IT in the supply chain has increasingly been the enterprise software developed to enable processes both within and across companies.Answer: TrueDifficulty: Moderate10. The unsuccessful categories of software will be those focused on the supply chain macro processes.Answer: FalseDifficulty: Easy11. This broadening of scope across which companies make decisions emphasizes the importance of including processes all along the supply chain when making decisions.Answer: True Difficulty: Moderate12. To increase the supply chain surplus (and therefore their firms own profitability) most effectively, firms must focus primarily on improving internal processes.Answer: FalseDifficulty: Moderate13. Functional performance is important to customers because it provides them with capabilities to create a competitive advantage.Answer: TrueDifficulty: Moderate14. The ability to integrate is important to a customer because applications that are easy to integrate are generally harder to get implemented and producing value.Answer: FalseDifficulty: Moderate15. Firms that work well with implementation partners and build up large groups of customers trained on their solutions have built a highly defensible position.Answer: TrueDifficulty: Moderate16. The goal of the CRM macro process is to negotiate an effective contract that establishes parameters for a supplier in a way that best meets enterprise needs.Answer: FalseDifficulty: Hard17. Weakness in the CRM process results in demand being lost and a poor customer experience because orders are not processed and executed effectively.Answer: TrueDifficulty: Easy18. CRM processes are crucial to the supply chain because of the lack of interaction between an enterprise and its customers.Answer: FalseDifficulty: Moderate19. The customer must be the starting point when trying to increase the supply chain surplus because all demand, and therefore revenue, ultimately arises from them.Answer: TrueDifficulty: Moderate20. When forecasting demand, ISCM interaction with SRM is essential as the SRM applications have the most data and insight on customer behavior.Answer: FalseDifficulty: Easy21. The ISCM processes should have strong integration with the SRM macro process, because supply planning, fulfillment, and field service are all dependent on suppliers and therefore the SRM processes.Answer: TrueDifficulty: Moderate22. Every industry has the same key success factors.Answer: FalseDifficulty: Easy23. Some of the worst IT disasters are due to the fact that companies try to implement IT systems in a wide variety of processes at the same time.Answer: TrueDifficulty: Easy24. Companies should use IT systems to make decisions, because the software available today can make many supply chain decisions for management.Answer: FalseDifficulty: EasyMultiple Choice1. Information technology (IT) consists of the toolsa. used to gain awareness of information.b. to analyze information.c. to act on information to improve the performance of the supply chain.d. all of the above e. b and c onlyAnswer: eDifficulty: Easy2. Information isa. the supply chain driver that serves as the glue allowing the other three drivers to work together to create an integrated, coordinated supply chain.b. crucial to supply chain performance.c. the key to the success of a supply chain.d. all of the abovee. a and c onlyAnswer: dDifficulty: Easy3. Informationa. provides the foundation on which supply chain processes execute transactions and managers make decisions.b. makes the supply chain visible to a manager.c. enables management to make decisions over a broad scope that crosses both functions and companies.d. all of the abovee. b and c onlyAnswer: dDifficulty: Moderate4. Information Technology (IT) a. consists of the hardware and software throughout a supply chain that gather, analyze, and act on information.b. serves as the eyes and ears (and sometimes a portion of the brain) of management in a supply chain.c. can have a significant impact on a firms performance.d. all of the abovee. a and b onlyAnswer: dDifficulty: Moderate5. Which of the following is not a characteristic information must have to be useful when making supply chain decisions?a. Information must be accurate.b. Information must be accessible in a timely manner.c. Information must be interesting.d. Information must be of the right kind.e. All of the above are useful characteristics.Answer: cDifficulty: Moderate6. To be accurate, information musta. give the true picture of the state of the supply chain.b. be 100 percent correct.c. paint a picture of reality that is at least directionally correct.d. all of the abovee. a and c onlyAnswer: eDifficulty: Moderate7. To be accessible in a timely manner, information must bea. out of date.b. current.c. easily accessible.d. all of the abovee. b and c onlyAnswer: eDifficulty: Moderate8. To be of the right kind, information needs to bea. useful.b. irrelevant.c. meaningless.d. all of the abovee. b and c onlyAnswer: aDifficulty: Moderate9. Information is a key ingredienta. at each stage of the supply chain.b. within each phase of supply chain decision making.c. only at each stage of the supply chain.d. none of the abovee. a and b onlyAnswer: eDifficulty: Moderate10. Enterprise softwarea. collects transaction data.b. analyzes transaction data to make decisions.c. executes decisions both within an enterprise and across its supply chain.d. all of the abovee. a and b onlyAnswer: bDifficulty: Moderate11. The successful categories of software in the evolution taking place in enterprise software will bea. those focused on the supply chain macro processes.b. those not focused on the supply chain macro processes.c. those focused on basic functions.d. none of the abovee. both a and cAnswer: bDifficulty: Moderate12. The emergence of supply chain management has broadened the scope across which companies make decisions toa. the supplier.b. the enterprise.c. the entire supply chain.d. the customer.e. none of the aboveAnswer: cDifficulty: Easy13. Which of the following is not one of the supply chain macro processes?a. Customer Relationship Management (CRM)b. Internal Supply Chain Management (ISCM)c. Supplier Relationship Management (SRM)d. Transaction Management Foundation (TMF)e. All of the above are supply chain macro processes.Answer: cDifficulty: Easy14. Processes that focus on downstream interactions between the enterprise and its customers are included in a. Customer Relationship Management (CRM).b. Internal Supply Chain Management (ISCM).c. Supplier Relationship Management (SRM).d. Transaction Management Foundation (TMF).e. none of the aboveAnswer: aDifficulty: Easy15. Processes that focus on internal operations within the enterprise are considered a. Customer Relationship Management (CRM).b. Internal Supply Chain Management (ISCM).c. Supplier Relationship Management (SRM).d. Transaction Management Foundation (TMF).e. none of the aboveAnswer: bDifficulty: Easy16. Processes that focus on upstream interactions between the enterprise and its suppliers are part ofa. Customer Relationship Management (CRM).b. Internal Supply Chain Management (ISCM).c. Supplier Relationship Management (SRM).d. Transaction Management Foundation (TMF).e. none of the aboveAnswer: cDifficulty: Easy17. Software that provides the foundation upon which the macro processes rest through basic ERP systems, infrastructure software, and integration software isa. Customer Relationship Management (CRM).b. Internal Supply Chain Management (ISCM).c. Supplier Relationship Management (SRM).d. Transaction Management Foundation (TMF).e. none of the aboveAnswer: dDifficulty: Easy18. To increase the supply chain surplus (and therefore their firms own profitability) most effectively, firms musta. expand their scope beyond their enterprise.b. focus primarily on improving internal processes.c. think in terms of all three supply chain macro processes.d. all of the abovee. a and c onlyAnswer: dDifficulty: Moderate19. Which of the following is not a factor determining the success of software firms focused on a macro process?a. functional performanceb. color and images on working screensc. integration with other macro processesd. strength of the software firms ecosysteme. none of the aboveAnswer: bDifficulty: Moderate20. Functional performance is important to customers becausea. advanced functionality is rarely utilized.b. it provides them with capabilities to create a competitive advantage.c. the ease of use is crucial to successful use.d. all of the abovee. b and c onlyAnswer: eDifficulty: Moderate21. The ability to integrate is important to a customer becausea. applications that are easy to integrate are generally easier to get implemented and producing value.b. applications that integrate across macro processes will be able to provide the benefits of making decisions for the extended supply chain.c. firms that do not have integrated solutions in all three macro processes have a competitive advantage.d. both a and be. both a and cAnswer: dDifficulty: Moderate22. A firms ecosystema. is the network of software partners and, more importantly, systems integrators and installed base.b. provides assistance in selling and implementing software.c. will determine how strong the network will be that provides support to a customer both during implementation and down the road.d. all of the abovee. a and c onlyAnswer: dDifficulty: Moderate23. The goal of the CRM macro process is toa. negotiate an effective contract that best meets enterprise needs.b. improve the design of products.c. fulfill demand generated by ISCM processes.d. generate customer demand and facilitate transmission and tracking of orders.e. none of the aboveAnswer: dDifficulty: Moderate24. Weakness in the CRM process results ina. orders that are not processed and executed effectively.b. demand being lost.c. a poor customer experience.d. all of the abovee. a and b onlyAnswer: dDifficulty: Easy25. Which of the following is a key process under CRM? a. Strategic Planningb. Fulfillmentc. Field Serviced. Demand Planninge. Order ManagementAnswer: eDifficulty: Moderate26. Which of the following is not a key process under CRM?a. Marketb. Demand Planningc. Order Managementd. Selle. Call CenterAnswer: bDifficulty: Hard27. The CRM processes are crucial to the supply chain becausea. all demand, and therefore revenue, ultimately arises from the customer.b. CRM processes (and also CRM software) must be integrated with internal operations to optimize performance.c. customer-focused units should be working independently from internal operations.d. all of the abovee. a and b onlyAnswer: cDifficulty: Moderate28. The customer must be the starting point when trying to increase the supply chain surplus becausea. customer-focused units are more effective when working independently.b. all demand, and therefore revenue, ultimately arises from them.c. internal operations cannot optimize performance.d. all of the abovee. a and c onlyAnswer: bDifficulty: Hard29. Which of the following is a key process under ISCM?a. Design Collaborationb. Negotiatec. Supply Collaborationd. Supply Planninge. Order ManagementAnswer: dDifficulty: Moderate30. Which of the following is not a key process under ISCM?a. Strategic Planningb. Fulfillmentc. Supply Collaborationd. Demand Planninge. Field ServiceAnswer: cDifficulty: Moderate31. There needs to be strong integration between the ISCM and CRM macro processes becausea. the ISCM macro process aims to fulfill demand that is generated by CRM processes.b. CRM applications have the most data and insight on customer behavior to be used in forecasting.c. fulfillment and field service are all dependent on suppliers.d. all of the abovee. a and b onlyAnswer: eDifficulty: Moderate32. The ISCM processes should have strong integration with the SRM macro process becausea. SRM applications have the most data and insight on customer behavior to be used in forecasting.b. supply planning, fulfillment, and field service are all dependent on suppliers.c. order management must integrate closely with fulfillment and be an input for effective demand planning.d. all of the abovee. a and b onlyAnswer: bDifficulty: Moderate33. Which of the following is a major SRM process?a. Strategic Planningb. Order Managementc. Design Collaboration d. Supply Planninge. FulfillmentAnswer: cDifficulty: Moderate34. Which of the following is not a major SRM process?a. Supply Planningb. Buyc. Design Collaborationd. Sourcee. NegotiateAnswer: aDifficulty: Hard35. ERP systemsa. were focused on building transaction management and process automation systems.b. proved to be the foundation for future decision support applications.c. excelled at the automation of simple transactions and processes as well as the creation of an integrated way to store and view.d. all of the abovee. b and c onlyAnswer: dDifficulty: Moderate36. Select an IT system that addresses the companys key success factors becausea. every industry has the same key success factors.b. IT systems need to give a company an advantage in the areas most crucial to the success of the business.c. these elements do not determine whether or not a company is going to be successful.d. all of the abovee. a and b onlyAnswer: bDifficulty: Moderate37. Take incremental steps and measure value becausea. some of the worst IT disasters are due to the fact that companies try to implement IT systems in a wide variety of processes at the same time.b. companies should not take a big picture perspective.c. the big picture perspective should be implemented in digestible pieces.d. all of the abovee. a and c onlyAnswer: eDifficulty: Moderate38. Align the level of sophistication with the need for sophistication becausea. there is a trade-off between the ease of implementing a system and the systems level of complexity.b. erring on the less sophisticated side leaves the firm with a competitive weakness.c. trying to be too sophisticated leads to a higher possibility of the entire system failing.d. all of the abovee. a and b onlyAnswer: dDifficulty: Moderate39. Use IT systems to support decision making, not to make decisions becausea. the software available today can make many supply chain decisions for management.b. companies need to maintain the amount of managerial effort they spend on supply chain issues.c. management needs to be able to make adjustments in the supply chain because the competitive and customer landscape changes.d. all of the abovee. b and c onlyAnswer: cDifficulty: Moderate40. Companies need to think about the future becausea. trends in a companys industry regarding insignificant characteristics could become crucial in the future.b. managers need to explore how flexible the systems will be when changes are required in the future.c. IT systems often last for many more years than originally planned.d. all of the abovee. b and c onlyAnswer: dDifficulty: ModerateEssay/Problems1. Explain the role of information in the supply chain.Answer: Information is crucial to the performance of a supply chain because it provides the basis upon which supply chain managers make decisions. Information is the supply chain driver that serves as the glue allowing the other three drivers to work together to create an integrated, coordinated supply chain. Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and managers make decisions. Therefore, information makes the supply chain visible to a manager. With this visibility, a manager can make decisions to improve the supply chains performance. In many ways, information is the most important of the four supply chain drivers because without it, none of the other drivers can be used to deliver a high level of per
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