MIS 5th Edition by Hossein Bidgoli -Test Bank

Chapter 11: Enterprise Systems

TRUE/FALSE

1. In a manufacturing firm’s supply chain, raw materials flow from consumers to suppliers.

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 225–226
Feedback: In a manufacturing firm’s supply chain, raw materials flow from suppliers to manufacturers (where they are transformed into finished goods), then to distributors, then to retailers, and finally to consumers.

2. Supply chains exist in both service and manufacturing organizations.

Answer: True
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 226
Feedback: Supply chains exist in both service and manufacturing organizations, although the chain’s complexity can vary widely in different organizations and industries.

3. A supply chain management (SCM) system coordinates the procurement, transformation, and distribution of products.

Answer: True
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 226
Feedback: An SCM system coordinates the following functions:
a. Procuring materials (in service organizations, can include resources and information)
b. Transforming materials into intermediate and finished products or services
c. Distributing finished products or services to customers

4. In a manufacturing firm, management activities in the information flow area of supply chain management (SCM) system consist of handling credit terms, payment schedules, and consignment and title ownership arrangements.

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 227
Feedback: Finances flow involves handling credit terms, payment schedules, and consignment and title ownership arrangements.

5. A key decision in supply chain management (SCM) related to manufacturing is cost.

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 227
Feedback: Four key decisions in SCM related to manufacturing are: location, inventory, production, and transportation.

6. For organizations that do not have in-house resources to develop a supply chain management (SCM) system, several vendors offer comprehensive solutions for this purpose.

Answer: True
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 227
Feedback: For organizations that do not have in-house resources to develop an SCM system, several vendors offer comprehensive solutions: SAP (www.sap.com/solutions/business-suite/scm/index.epx), Oracle (www.oracle.com/us/solutions/scm/index.htm), JDA Software (www.jda.com), Ariba (www
.ariba.com), and Manhattan Associates (www.manh.com).

7. Using the Internet and Web protocols for electronic data interchange (EDI) increases the cost of transmitting documents.

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 228
Feedback: Using the Internet and Web protocols for EDI lowers the cost of transmitting documents. This method is called “Web-based EDI” or “Open EDI.” It also has the advantage of being platform independent and easy to use.

8. Transmitting across the Internet involves lower security risks than traditional electronic data interchange (EDI).

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 228
Feedback: Transmitting across the Internet does involve more security risks than traditional EDI, which uses proprietary protocols and networks.

9. A traditional electronic data interchange (EDI) uses proprietary protocols and networks.

Answer: True
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 228
Feedback: Transmitting across the Internet does involve more security risks than traditional EDI, which uses proprietary protocols and networks.

10. With the advent of XML, more organizations have shifted toward traditional electronic data interchange (EDI).

Answer: False
Chapter Learning Outcome: 11.1: Explain how supply chain management is used.
Topic: Supply Chain Management
BUSPROG: Technology
Bloom’s: Remember
Difficulty Level: Easy
Page: 228
Feedback: With the advent of XML, organizations can use the Internet and Open EDI to perform the same function that EDI performs, so traditional EDI has declined in popularity.