Saudi Electronic University - MIS 1E

Package Title: Assessment Questions Course Title: MIS 1e

Chapter Number: 13 Question Type: True/False

1)Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.

2. Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

3. Sourcing from external suppliers occurs in the upstream portion of the supply chain.

4. Packaging and assembly take place in the downstream portion of the supply chain.

5. There are typically four flows in the supply chain: materials, information, returns, and financial.

6. The goal of SCM systems is to reduce friction along the supply chain.

7. The pull model is make-to-stock.

8. The push model begins with a forecast.

9. A company can’t change from a push model to a pull model.

10. Overestimating and underestimating demand both create problems for organizations.

11. A major source of supply chain uncertainty is the supply forecast.

12. The most common solution to supply chain problems is building inventories.

13. Horizontal integration is a business strategy in which a company buys its suppliers.

14. Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.

15. Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents.

16. Electronic data interchange minimizes paper usage and storage.

17. Electronic data interchange requires only a small initial investment.

18. Electronic data interchange is a problem for small businesses.

19. Internet-based extranets are much less costly than proprietary networks.

Question Type: Multiple Choice

20. Trends that have led to the supply chain concept include all of the following except:

1. modern organizations are focusing on their core competencies
2. modern organizations are concentrating on becoming more agile and flexible
3. modern organizations are buying their suppliers in order to have more transparency along the supply chain
4. modern organizations are relying on other companies to supply necessary goods and services
5. modern organizations are relying on an increasing number of suppliers

21.      is the ability for all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.

1. Supply chain visibility
2. Horizontal integration
3. Vertical integration
4. Supply chain intelligence
5. Supply chain integration

22.      is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

1. Inventory turnover
2. Inventory velocity
3. Inventory speed
4. Inventory time
5. Inventory production

23. A(n)  refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end customers.

1. demand chain
2. business process
3. manufacturing process

4. supply chain
5. enterprise resource process

24. The    is comprised of a company’s suppliers, the suppliers’ suppliers, and the processes for managing them.

1. suppliers’ chain
2. external supply chain
3. upstream portion of the supply chain
4. downstream portion of the supply chain
5. entire supply chain

25. Packaging, assembly, and manufacturing take place in which segment of the supply chain?

1. upstream
2. internal
3. downstream
4. external
5. none of the above

26. The          refers to a company’s organization and processes for distributing and delivering products to its final customers.

1. suppliers’ chain
2. external supply chain
3. upstream portion of the supply chain
4. downstream portion of the supply chain
5. entire supply chain

27. Distribution or dispersal takes place in which segment of the supply chain?

1. upstream
2. internal
3. downstream
4. external
5. none of the above

28.            are the physical products, raw materials, and supplies that flow along a supply chain.

1. Reverse flows
2. Reverse logistics
3. Material flows
4. Information flows
5. Financial flows

29. Returned products, recycled products, and disposal of materials or products are called:

1. reverse flows
2. returns
3. material flows
4. information flows
5. financial flows

30.            consist of data that are related to demand, shipments, orders, returns, and schedules.

1. Reverse flows
2. Reverse logistics
3. Material flows
4. Information flows
5. Financial flows

31.            involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

1. Reverse flows
2. Reverse logistics
3. Material flows
4. Information flows
5. Financial flows

32. The goals of supply chain management include which of the following?

1. to reduce uncertainty and risks along the supply chain
2. to reduce inventory levels
3. to reduce cycle time
4. to improve customer service
5. all of the above

33. Which of the following is not a goal of supply chain management?

1. to reduce uncertainty along the supply chain
2. to decrease inventory levels
3. to increase cycle time
4. to improve customer service
5. to improve business processes

34. Interorganizational information systems result in all of the following except:

1. reduced costs of routine business transactions
2. improved quality of information flow
3. reduced errors
4. increased cycle time
5. eliminated paper processing

35. In the           , the production process begins with a forecast.

1. supply chain model
2. inventory model
3. pull model
4. vertical integration model
5. push model

36. In the           , the production process begins with a customer order.

1. supply chain model
2. inventory model
3. pull model
4. vertical integration model
5. push model

37. The            is known as make-to-stock.

1. supply chain model
2. inventory model

3. pull model
4. vertical integration model
5. push model

38. The            is known as make-to-order.

1. supply chain model
2. inventory model
3. pull model
4. vertical integration model
5. push model

39. Which of the following models best describes the business model of large automobile manufacturers?

1. Supply chain model
2. Inventory model
3. Pull model
4. Vertical integration model
5. Push model

40. Which of the following is not a problem along the supply chain?

1. poor customer service
2. high inventory costs
3. loss of revenues
4. decreased cycle times
5. extra cost of expediting shipments

41. The            refers to erratic shifts in orders up and down the supply chain.

1. demand forecast effect
2. supply forecast effect
3. bullwhip effect
4. inventory effect
5. customer coordination effect

42. The bullwhip effect results from which of the following?

1. poor demand forecast
2. price fluctuations
3. order batching
4. rationing within the supply chain
5. all of the above

43. Which of the following is not responsible for the bullwhip effect?

1. poor demand forecast
2. price fluctuations
3. order batching
4. rationing within the supply chain
5. poor supply forecast

44. Which of the following is not a possible solution to supply chain problems?

1. vertical integration
2. building inventories
3. information sharing
4. horizontal integration
5. the bullwhip effect

45.            is the strategy of purchasing upstream suppliers, in order to ensure availability of supplies.

1. Horizontal integration
2. Vertical integration
3. Just-in-time inventory management

4. Supply chain integration
5. Customer order integration

46. When Walmart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits those data to the company that makes the diapers. When inventory gets too low, the diaper company ships more diapers in that Walmart store. This process is called:

1. supply chain management
2. demand chain management
3. vendor-managed inventory
4. enterprise resource planning inventory
5. just-in-time inventory

47. The benefits of EDI include which of the following?

1. data entry errors are minimized
2. length of messages is shorter
3. messages are secured
4. fosters collaborative relationships
5. all of the above

48. Which of the following is not a benefit of EDI?

1. data entry errors are minimized
2. length of messages is longer
3. messages are secured
4. fosters collaborative relationships
5. reduced cycle time

49. Which of the following is not a limitation of EDI?

1. It is inflexible.
2. It might require a company to restructure its business processes.
3. It is expensive, but ongoing operating costs are low.
4. Multiple EDI standards exist.
5. It is difficult to make quick changes.

50. The primary goal of extranets is to             .

1. foster collaboration between and among business partners
2. provide security for corporate intranets
3. provide effective communications inside corporate intranets
4. enable corporate employees to view inventory information for their companies
5. enable business partners to better plan mergers and acquisitions

51. Extranets use            technology to make communication over the Internet more secure.

1. telepresence
2. anti-malware
3. virtual private network
4. voice-over IP
5. videoconferencing

52. The FedEx extranet that allows customers to track the status of a package is an example of which type of extranet?

1. a company and its dealers, customers, and/or suppliers
2. an industry’s extranet
3. joint venture
4. B2B exchange
5. B2C exchange

53. The Bank of America extranet for commercial loans links lenders, loan brokers, escrow companies, title companies, and others. This is an example of which type of extranet?

1. a company and its dealers, customers, and/or suppliers

2. an industry’s extranet
3. B2C exchange
4. B2B exchange
5. joint venture

54.            portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.

1. Distribution
2. Corporate
3. Affiliate
4. Intranet
5. Procurement

55.            portals automate the business processes involved in selling products from a single supplier to multiple buyers.

1. Distribution
2. Corporate
3. Affiliate
4. Intranet
5. Procurement

56. Refer to Opening Case – Campus Quilts Partners with UPS to Manage Its Supply Chain: Campus Quilts uses a shipping solution from UPS because:

1. shipping is too expensive.
2. the customers demanded it.
3. Leigh was too busy quilting to handle shipments too.
4. Campus Quilts needed security of shipments.

57. Refer to IT’s About Business 13.1 – Cisco Moves from Push Model to Pull Model: When Cisco transformed its inventory planning from a push system into a pull system, it took all of the following actions except:

1. It gathered data from its suppliers.
2. It gathered data from its upstream business partners.
3. It designed new forecasting algorithms.
4. It brought together sales and operations personnel to create a common view of demand alerts.
5. It created shared data among all the affected departments and customers.

58. Refer to IT’s About Business 13.2– Airbus Moves to a “smart Supply Chain”: Airbus’s upgraded supply chain management relies on what technology?

1. Bar codes
2. Infrared
3. NFC
4. GPS
5. RFID

59. Refer to Closing Case #1 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: A bill of materials for a product includes all of the following data except:

1. The time required to make the final product
2. Raw materials and the needed quantity of each one
3. Assemblies and the needed quantity of each one
4. Components and the needed quantity of each one
5. Parts and the needed quantity of each one.

60. Refer to Closing Case #1 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: Which of the following was not one of Cannondale’s objectives when evaluating IT solutions to their manufacturing system?

1. Accurate parts flow
2. Flexibility
3. Timely reporting
4. Shared data among all involved
5. Web-based interface

61. Refer to Closing Case #2 – Driving Innovation: Which of the following statements is true?

1. Kimberly-Clark’s new systems uses business rules to eliminate some of the manual work.
2. The system Kimberly-Clark was using was fine just old.
3. No human actions are required in Kimberly-Clark’s new TMS.
4. The new system can only support planning and managing transportation.

Question Type: Multiple Choice

62. Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Which of the following is true about Haya’s supply chain?

1. Haya’s supplier is downstream in her supply chain.
2. Haya’s customers are upstream in her supply chain.

3. If a customer returns a tie, that is known as reverse logistics.
4. Haya has no information flows.
5. Haya’s supplier is the only other link in her supply chain.

63. Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the following is true about Haya’s supply chain?

1. Haya is using a push model.
2. Haya is using a pull model.
3. Haya is experiencing the bullwhip effect.
4. Haya has an accurate demand forecast.
5. None of the above statements is true.

64. Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the following is true about Haya’s supply chain?

1. Haya is using a just-in-time inventory system.
2. Haya is using a vendor-managed inventory.
3. Haya is building inventories.

4. Haya has vertical integration with her upstream supplier.
5. Haya is using a pull model.

65. Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Haya knows she needs to manage her relationship with her supplier. Which of the following is true?

1. Haya should invest in EDI software.
2. Haya can use the supplier’s intranet to order.
3. Haya should give the supplier access to her VPN.
4. Haya can use the supplier’s procurement portal to order merchandise.
5. Haya can use the supplier’s extranet to check on her order.

66. Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Haya orders 40 ties in each of the school colors and 10 in each of four sports. She almost instantly sells out of all the sport-themed ties. She decides to approach each of the sports teams on campus to see if they would be willing to buy ties “in bulk.” Which of the following is true about Haya’s supply chain as it relates to her new idea of having bulk sales?

1. Haya is using a push model.
2. Haya is using a pull model.

3. Haya is experiencing the bull-whip effect.
4. Haya has an accurate demand forecast.

67. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity.

Which of the following is true about Taylor’s supply chain?

1. Taylor’s supplier is downstream in her supply chain.
2. Taylor’s customers are downstream in her supply chain.
3. Taylor has no information flows.
4. Taylor’s supplier is the only other link in her supply chain.

68. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity.

Which of the following is true about Taylor’s supply chain?

1. Taylor is using a push model.
2. Taylor is using a pull model.
3. Taylor is experiencing the bullwhip effect.
4. Taylor has an accurate demand forecast.

69. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She is never very sure how many she will sell at each fair so she just makes what she can and hopes she has enough to meet demand.

Which of the following is true about Taylor’s supply chain?

1. Taylor is practicing JIT inventory.
2. Taylor has vertical integration.
3. Taylor doesn’t need accurate forecasts.
4. Taylor is experiencing the bullship effect.

70. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She knows there is a huge craft fair coming up at her local high school and she has been saving all the t-shirts she has gotten that have the high school’s name on it so she will have lots of bags targeted to the high school audience.

Which of the following is true about Taylor’s supply chain?

1. Taylor is practicing JIT inventory.
2. Taylor has vertical integration.
3. Taylor doesn’t need accurate forecasts.
4. Taylor is experiencing the bullship effect.

71. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. The owner of the Crafted Hand shop in her home town wants to add the bags to the items she sells on consignment in her store. Taylor would be responsible for stopping by and replenishing the inventory such that there are always ten bags on hand.

Which of the following is true?

1. This is an example of JIT inventory.
2. This is an example of a push model.
3. This is an example of vendor-managed inventory.
4. This is an example of vertical integration.

72. Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. A customer loved her bags at a recent fair and wants Taylor to make some for her. She has lots of “memory” t-shirts and Taylor’s bags would make great gifts. Taylor is more than happy to take on this order.

Which of the following is true?

1. This is an example of a pull model.
2. This is an example of a push model.
3. This is an example of a bullwhip effect.
4. This is an example does not affect Taylor’s supply chain.