This Document Contains Chapters 8 to 10 Chapter Extension 8 Network and Cloud Technology 1) The distinguishing characteristic of a local area network (LAN) is that it ___________. A) connects computers at multiple locations B) connects computers at a single location C) is a network of networks D) does not require a wired connection Answer: B 2) A(n) ___________ connects computers at different geographical locations. A) local area network B) wide area network C) Ethernet D) Econet Answer: B 3) Computers in two separate company sites must be connected using a(n) ___________. A) local area network B) wide area network C) commerce server D) Ethernet Answer: B 4) A ___________ is used to provide a seamless flow of data across networks. A) layered protocol B) database C) Web page D) Web server Answer: A 5) A(n) ___________ is a set of rules that programs on two communicating devices follow. A) domain B) attribute C) protocol D) database Answer: C 6) With a wide area network (WAN), an organization can place communications lines wherever it wants because all lines reside on its premises. Answer: False 7) An internet is a network of networks that connects local area networks (LANs), wide area networks (WANs), and other internets. Answer: True 8) A local area network (LAN) can be used to connect computers located in Seattle and Philadelphia. Answer: False 9) A private internet that is used exclusively within an organization is called an intranet. Answer: True 10) What is the difference between a local area network (LAN) and a wide area network (WAN)? Give an example of how each one could be used in businesses. Answer: A local area network (LAN) connects computers that reside in a single geographic location on the premises of the company that operates the LAN. Wide area networks (WANs) connect computers at different geographic locations. The computers in two separated company sites must be connected using a WAN. With a LAN, the number of connected computers can range from two to several hundred, but they are still in a single location (usually within a building or floor of a building). Most small businesses have a LAN in their office that connects them. A university campus connects all the different buildings on the campus and possibly multiple campuses via a WAN. 11) A ___________ is a networking device that detects the speed that a given device on a local area network (LAN) can handle and communicates with it at that speed. A) bus B) switch C) domain D) hub Answer: B 12) The IEEE 802.3 protocol standard is also known as the ___________. A) TCP/IP protocol B) Ethernet C) intranet D) Internet Answer: B 13) Which protocol standard used for wired local area network (LAN) connections specifies hardware characteristics, such as the signal to be carried by each wire? A) Bluetooth B) WiMAX C) Ethernet D) RuBee Answer: C 14) What does the term 10/100/1000 Ethernet in most computer systems indicate? A) the number of devices that can be connected B) the distance over which the network signal can be transmitted C) the rate at which data can be transmitted D) the Internet protocol used by a system Answer: C 15) Which of the following statements is true of local area network (LAN) protocols? A) IEEE LAN protocols always start with the numbers 802. B) The IEEE 802.11 protocol is also called the Ethernet. C) Wired LANs use the IEEE 802.11 protocol. D) The IEEE 802.3ac is the current standard for wireless LANs. Answer: A 16) Which of the following wireless protocols is designed for transmitting data over short distances? A) optical fiber B) coaxial cable C) twisted-pair cable D) Bluetooth Answer: D 17) Which of the following protocols is commonly used by wired local area networks (LANs)? A) IEEE 802.3 B) DSL C) EVDO D) WiMAX Answer: A 18) Which of the following protocols is commonly used for wireless local area networks (LANs)? A) IEEE 802.11 B) Distributed Data Interface C) DSL D) IEEE 802.3 Answer: A 19) Which of the following statements is true of an Internet service provider (ISP)? A) It separates the phone signals from computer signals on a digital subscriber line (DSL) at a user's location. B) It facilitates a one-way information transfer process between a user's computer and the Internet. C) It allows a user to communicate directly through the Internet without requiring a wireless medium of communication. D) It provides a legitimate Internet address and serves as a user's gateway to the Internet. Answer: D 20) Which of the following statements is true of digital subscriber lines (DSLs)? A) They use television lines for data transmission. B) Their signals do not interfere with voice telephone services. C) Their operations are independent of voice telephone lines. D) They do not allow data transmission to occur when telephone conversations occur. Answer: B 21) Which of the following statements is true of cable lines? A) Cable lines provide high-speed data transmission using telephone cables. B) Performance of cable lines is stable irrespective of the number of users sending and receiving data. C) Cable lines use the same protocols used by data transmission lines. D) The signals from cable lines do not interfere with TV signals. Answer: D 22) A small office or a home office local area network (SOHO LAN) requires more than a dozen computers and printers. Answer: False 23) The committee that addresses local area network (LAN) standards is called the IEEE 803 Committee. Answer: False 24) Users can download data at a maximum speed of 10 Mbps using cable lines. Answer: False 25) Most personal computers today that support 10/100/1000 Ethernet conform to the 802.3 specification and allow for transmission at a rate of 10, 100, or 1,000 Mbps. Answer: True 26) The IEEE 802.3 protocol is used for wired local area network (LAN) connections. Answer: True 27) Wireless mice use Bluetooth to connect to a computer. Answer: True 28) Bluetooth is a protocol that can transmit data over long distances. Answer: False 29) A digital subscriber line (DSL) operates on the same lines as voice telephones. Answer: True 30) Cable lines provide high-speed data transmission using phone lines. Answer: False 31) What is Bluetooth? What are its uses? Answer: Bluetooth is a common wireless protocol. It is designed for transmitting data over short distances, replacing cables. Some devices, such as wireless mice and keyboards, use Bluetooth to connect to a computer. Smartphones use Bluetooth to connect to automobile entertainment systems. 32) What are the three important functions of an Internet service provider (ISP)? Answer: An ISP has three important functions. First, it provides the client with a legitimate Internet address. Second, it serves as a gateway to the Internet. The ISP receives the communications from a client's computer and passes them on to the Internet, and it receives communications from the Internet and passes them on to the client. Finally, ISPs pay for the Internet. They collect money from their customers and pay access fees and other charges on their behalf. 33) Which of the following statements defines an IP address? A) It is a protocol that specifies the format of Web pages. B) It is a number that identifies a particular device. C) It is a piece of message handled by programs that implement Internet protocol. D) It is a program that breaks up network traffic into pieces before transmission. Answer: B 34) Which of the following statements is true of an IP address? A) The use of an IP address is limited to the public Internet. B) An IP address can be associated with just one domain name. C) The IP address that a domain name points to can be changed. D) An IP address commonly has either a three-decimal or five-decimal dotted notation. Answer: C 35) A ___________ is a worldwide-unique identity that is affiliated with a public IP address. A) tag name B) protocol C) domain name D) uniform resource locator Answer: C 36) Which of the following refers to an address on the Internet? A) File Transfer Protocol B) digital subscriber line C) uniform resource locator D) Internet service provider Answer: C 37) Which of the following is a component of the user tier? A) a computer that has browsers that request and process Web pages B) a computer that runs Web servers and processes application programs C) a computer that runs a database management system (DBMS) that processes requests for data from a commerce server D) a computer that receives Web page requests and sends them to an available server to minimize customer delays in a facility called a Web farm Answer: A 38) Which of the following is the second tier in the three-tier architecture arrangement? A) presentation tier B) database tier C) server tier D) user tier Answer: C 39) ___________ are programs that run on a server-tier computer and manage traffic by sending and receiving Web pages to and from clients. A) Content delivery networks B) Web servers C) Uniform resource locators D) Web browsers Answer: B 40) Which of the following statements is true of Web servers? A) They typically perform the functions of tracking and managing the products in a database. B) They are part of the user tier in the three-tier architecture. C) They are used only to send and receive Webmail. D) They send and receive Web pages to and from clients. Answer: D 41) The movement from one network to another is called a hop. Answer: True 42) The user tier consists of computers, phones, and other devices. Answer: True 43) The server tier consists of computers that run a database management system (DBMS) that processes requests to retrieve and store data. Answer: False 44) What is the TCP/IP Protocol architecture? Where are the various application-layer protocols? Answer: The protocols used on the Internet are arranged according to a structure known as the TCP/IP Protocol architecture. This architecture has five layers, and one or more protocols are defined at each layer. Data communications and software vendors write computer programs that implement the rules of a particular protocol. For protocols at the bottom layer, the physical layer, they build hardware devices that implement the protocol. The top layer, or the application layer, concerns protocols used between browsers and Web servers. Hypertext Transport Protocol (http), Simple Mail Transfer Protocol (smtp), and File Transfer Protocol (ftp) are application-layer protocols. 45) What is HTTP? How does it work? Answer: Hypertext Transport Protocol (http) is an application layer protocol. It is used between browsers and Web servers. Browsers send and receive service requests to and from the commerce server using http. This allows browsers and servers who implement http to communicate with each another. The browsers send and receive service requests to and from a server using http. 46) Differentiate between private and public Internet protocol (IP) addresses. Explain the benefits of the private/public IP address scheme. Answer: Public IP addresses identify a particular device on the public Internet. Because public IP addresses must be unique worldwide, their assignment is controlled by a public agency known as Internet Corporation for Assigned Names and Numbers (ICANN). Private IP addresses identify a particular device on a private network, usually on a local area network (LAN). Their assignment is controlled within the LAN, usually by the LAN device. The private/public IP address scheme has two major benefits. First, public IP addresses are conserved. All of the computers on the LAN use only one public IP address. Second, by using private IP addresses, users are protected from attackers directly attacking them because attackers cannot send attack packets to private IP addresses. Attackers can only send packets to devices with public IP addresses. 47) What is a domain name? What is the procedure to get a domain name? Answer: A domain name is a worldwide-unique name that is affiliated with a public IP address. When an organization or individual wants to register a domain name, it goes to a company that applies to an ICANN (Internet Corporation for Assigned Names and Numbers) approved agency to do so. The company will first determine if the desired name is unique, worldwide. If so, it will apply to register that name to the applicant. Once the registration is completed, the applicant can affiliate a public IP address with the domain name. From that point onward, traffic for the new domain name will be routed to the affiliated IP address. 48) What are the different tiers in the three-tier architecture used by Web applications? Answer: Almost all web applications use the three-tier architecture, which is an arrangement of user computers and servers into three categories, or tiers. The user tier consists of computers, phones, and other devices that have browsers that request and process Web pages. The server tier consists of computers that run Web servers and process application programs. The database tier consists of computers that run a database management system (DBMS) that processes requests to retrieve and store data. 49) How does a Web server differ from a commerce server? Answer: Web servers are programs that run on a server-tier computer and manage traffic by sending and receiving Web pages to and from clients. A commerce server is an application program that runs on a server-tier computer. Typical commerce server functions are to obtain product data from a database, manage the items in a shopping cart, and coordinate the checkout process. When a request comes to the server, the Web server examines it and sends it to the proper program for processing. Thus, the Web server passes e-commerce traffic to the commerce server. It passes requests for other applications to those applications. 50) Which of the following statements is true of service-oriented architecture (SOA)? A) Work is assigned to Web servers based on their geographical proximity to a user. B) SOA services are used only between the Web server and the users. C) The number of database servers and Web servers should be in a fixed ratio. D) JavaScript is written to invoke services defined by a server application. Answer: D 51) Which of the following purposes does a Hypertext Transport Protocol (http) serve? A) determining the IP address of devices on a network B) providing a reliable network for data communication C) enabling communication between a browser and server D) dividing network traffic into packets Answer: C 52) S in https stands for ___________. A) site B) status C) speed D) secure Answer: D 53) ___________ is a common TCP/IP application-layer protocol that is used for email transmissions. A) EXtensible Markup Language B) Mail Access Protocol C) File Transfer Protocol D) Simple Mail Transfer Protocol Answer: D 54) A common use of the File Transfer Protocol (FTP) is to ___________. A) move files over the Internet B) balance server loads C) format files D) manage network traffic Answer: A 55) ___________ is a language used for transmitting documents in Web services and the cloud. A) HyperText Markup Language B) Web Services Description Language C) Structured Query Language D) eXtensible Markup Language Answer: D 56) Which of the following statements is true of protocols supporting Web services? A) SOAP is a lower-level Internet protocol. B) XML is preferred for transmitting large volumes of data between servers and browsers. C) WSDL documents are read by developer tools to configure a programming environment. D) The metadata in JSON is well-suited for validating the format and completeness of the document. Answer: C 57) Which of the following statements is true of the JavaScript Object Notation (JSON)? A) It contains a lot of metadata to validate the format of documents. B) It is used to transmit voluminous data between browsers and servers. C) JSON documents can be processed only using the Java programming language. D) It cannot be used to support Web services. Answer: B 58) The basic plumbing of the Internet is governed by protocols that are defined according to an arrangement called the TCP/IP Protocol architecture. Answer: True 59) The TCP/IP Protocol architecture uses the same protocol in all its layers. Answer: False 60) The Hypertext Transport Protocol (http) is a TCP/IP application-layer protocol. Answer: True 61) The File Transfer Protocol (ftp) is generally used for email transmissions. Answer: False 62) SOAP is a protocol for requesting Web services and for sending responses to Web service requests. Answer: True Chapter Extension 9 Enterprise Resource Planning (ERP) Systems 1) ___________ is a suite of applications, a database, and a set of inherent processes for consolidating business operations into a single, consistent computing platform. A) Enterprise resource planning B) Customer relationship management C) Warehouse management system D) Supply chain management Answer: A 2) The primary purpose of an enterprise resource planning (ERP) system is integration. Answer: True 3) What is the primary purpose of an enterprise resource planning (ERP) system? Answer: The primary purpose of an ERP system is integration. An ERP system allows the left hand of the organization to know what the right hand is doing. This integration allows real-time updates, globally, whenever and wherever a transaction takes place. Critical business decisions can then be made on a timely basis using the latest data. 4) Which of the following is an example of a supply chain activity? A) capacity planning B) marketing C) inventory management D) customer management Answer: C 5) Which of the following is a manufacturing activity that must be included in a true enterprise resource planning (ERP) product? A) supplier management B) capacity planning C) sales prospecting D) procurement Answer: B 6) Customer relationship management (CRM), as an application that must be included in a true enterprise resource planning (ERP) product, includes ___________. A) cash management B) HR management C) sales prospecting D) capacity planning Answer: C 7) ___________ activities include payroll, time and attendance, and benefits administration that must be integrated into applications in order to form a true enterprise resource planning (ERP) product. A) Manufacturing B) Supply chain C) Human resource D) Accounting Answer: C 8) The process of maintaining a general ledger, which must be integrated into applications in order to form a true enterprise resource planning (ERP) product, is a(n) ___________ activity. A) supply chain B) accounting C) human resources D) manufacturing Answer: B 9) Which of the following statements is true of enterprise resource planning (ERP) application programs? A) During the ERP development process, the development team sets configuration parameters that specify how ERP application programs will operate. B) There are virtually no limits to how much configuration can be done in an ERP application program. C) Custom programming of ERP application programs are economical both initially and for long-term maintenance. D) In order to meet varying customer requirements, development teams must often change the program code of ERP application programs. Answer: A 10) Which of the following statements is true of an enterprise resource planning (ERP) database? A) An ERP solution contains the company's operational data. B) A stored procedure is a computer program code stored within an ERP database that runs to keep the database consistent when certain conditions arise. C) An ERP solution includes initial configuration data. D) A trigger is a computer program code stored in an ERP database that is used to enforce business rules. Answer: C 11) Which of the following statements describes a trigger? A) It is a computer program stored within a database that runs to keep the database consistent when certain conditions arise. B) It is a computer program stored in a database that is used to enforce business rules. C) It is a set of inherent procedures in an enterprise resource planning (ERP) solution that implement standard business processes. D) It is a programming paradigm that describes computation in terms of statements that change a program state. Answer: A 12) What is a stored procedure? A) It is a computer program stored within a database that runs to keep the database consistent when certain conditions arise. B) It is an area of memory that is used for dynamic memory allocation. C) It is a computer program stored in a database that is used to enforce business rules. D) It is a software program that houses and serves business logic for use by multiple applications. Answer: C 13) As an element of an enterprise resource planning (ERP) solution, supply chain includes scheduling, capacity planning, quality control, bill of materials, and related activities. Answer: False 14) Enterprise resource planning (ERP) vendors design application programs to be configurable so that development teams can alter them to meet customer requirements without changing program code. Answer: True 15) An enterprise resource planning (ERP) solution includes a database design, initial configuration data, and the company's operational data. Answer: False 16) A stored procedure is a computer program stored within a database that runs to keep the database consistent when certain conditions arise. Answer: False 17) An example of a stored procedure would be never to sell certain items at a discount. Answer: True 18) Process blueprints are the inherent processes in an enterprise resource planning (ERP) solution that implement standard business processes. Answer: True 19) Enterprise resource planning (ERP) training includes topics such as obtaining top-level management support. Answer: True 20) The enterprise resource planning (ERP) training sessions in which the implementing organization's employees teach the ERP trainers about the organization's processes are called train the trainer. Answer: False 21) Explain enterprise resource planning (ERP) application programs. Answer: ERP vendors design application programs to be configurable so that development teams can alter them to meet customer requirements without changing program code. Accordingly, during the ERP development process, the development team sets configuration parameters that specify how ERP application programs will operate. There are limits to how much configuration can be done. If a new ERP customer has requirements that cannot be met via program configuration, then it either needs to adapt its business to what the software can do or write, or pay another vendor to write, an application code to meet its requirement. Thus, choosing an ERP solution that has applications that function close to the organization's requirements is critically important to success. 22) Which of the following tasks should be considered while implementing an enterprise resource planning (ERP) application? A) creating an as-is model that summarizes current business procedures and practices B) plunging the organization into the new system C) modeling all current practices "as-is" and implementing them on ERP application D) modifying every existing practice to match blueprint models Answer: A 23) For implementing enterprise resource planning (ERP) systems, the first task is to create a model of current business procedures and practices, which is called the as-is model. Answer: True 24) The differences between as-is processes and the blueprint should be reconciled after the enterprise resource planning (ERP) system has been implemented. Answer: False 25) A new enterprise resource planning (ERP) implementation process cannot be carried out if a business is running on an old system. Answer: False 26) An enterprise resource planning (ERP) implementation depends primarily on the backing of a departmental manager. Answer: False 27) Explain briefly the steps for implementing enterprise resource planning (ERP) systems. Answer: The first task in implementing ERP systems is to create a model of current business procedures and practices, which is called the as-is model. Managers and analysts then compare those as-is processes to the ERP process blueprints and note differences. The company then must find ways to eliminate the differences, either by changing the existing business process to match the ERP process or by altering the ERP system. Once the differences between as-is processes and the blueprint have been reconciled, the next step is to implement the system. Before implementation starts, however, users must be trained on the new processes, procedures, and use of the ERP system's features and function. Additionally, the company needs to conduct a simulation test of the new system to identify problems. Then, the organization must convert its data, procedures, and personnel to the new ERP system. All of this happens while the business continues to run on the old system. 28) Which of the following aspects that impact enterprise resource planning (ERP) differs among companies of different sizes? A) relevance of ERP systems B) value chains C) availability of skilled IT staff D) basic business processes Answer: C 29) Which of the following statements is true of the impact of enterprise resource planning (ERP) on the IT staff of small organizations? A) IT specialists in small organizations are dedicated to managing only the ERP system. B) The IT staff in small organizations is isolated from senior management. C) The chief information officer obtains the backing of the entire executive group for ERP implementation. D) IT specialists in small organizations are spread very thin and often are in over their heads during an ERP implementation. Answer: D 30) Which of the following statements is true of the effect of enterprise resource planning (ERP) on the IT staff of midsized organizations? A) In midsized organizations, the IT staff is often isolated from senior management. B) ERP implementation in midsized companies will be part of a strategic process and, once begun, will have the full backing of the entire executive group. C) IT specialists in midsized organizations are spread very thin and often are in over their heads during an ERP implementation. D) Midsized organizations employ only one or two IT specialists. Answer: A 31) Which of the following statements is true of the types of organizations that use enterprise resource planning (ERP)? A) ERP vendors started selling ERP solutions to distributors after their success with the manufacturing industry. B) Implementing ERP in organizations of different scales is difficult due to the differences in their basic business processes. C) ERP procedures are uniform in large organizations operating in multiple countries. D) Availability of IT personnel does not have an impact on ERP implementation. Answer: A 32) Enterprise resource planning (ERP) was initially adopted by government and public service agencies to handle complex administrative tasks. Answer: False 33) Small organizations tend to employ only one or two IT specialists who not only manage the enterprise resource planning (ERP) system, but the entire IS department as well. Answer: True 34) In midsized organizations, the first step in moving toward enterprise resource planning (ERP) is to obtain deep senior-level management commitment to the project. Answer: True 35) Explain how organizations of different sizes use enterprise resource planning (ERP) differently. Answer: Companies of different sizes have one very important difference that has a major impact on ERP: the availability of skilled IT personnel. Small organizations employ only one or two IT specialists who not only manage the ERP system, but the entire IS department as well. They are spread very thin and often are in over their heads during an ERP implementation. Smaller, simpler ERP solutions are common among these companies. Midsized organizations expand IT from one person to a small staff, but frequently this staff is isolated from senior management. Such isolation creates misunderstanding and distrust. Because of the expense, organizational disruption, and length of ERP projects, senior management must be committed to the ERP solution. When IT management is isolated, such commitment is difficult to obtain and may not be strong. This issue is so prevalent that many ERP consultants say the first step in moving toward ERP is to obtain deep senior-level management commitment to the project. Large organizations have a full IT staff that is headed by the chief information officer (CIO), who is a business and IT professional who sits on the executive board and is an active participant in organizational strategic planning. ERP implementation will be part of that strategic process and, once begun, will have the full backing of the entire executive group. 36) ___________ offers Business Cloud, an enterprise resource planning (ERP) solution that can be used as a software service, can be installed on the customer's servers and managed by personnel. A) Sage B) SAP C) Infor D) Oracle Answer: C 37) In the future, which of the following Microsoft products is likely to be a true enterprise resource planning (ERP) product for larger organizations? A) Solomon B) Nav C) AX D) GP Answer: C 38) Which of the following statements is true of Oracle's enterprise resource planning (ERP) products? A) Oracle has never been known to create easy-to-use ERP products. B) Oracle traditionally does not develop its ERP products in-house. C) Oracle's ERP products are not available on mobile devices. D) Oracle's ERP products are not designed according to SOA principles and hence are non-customizable. Answer: A 39) Which of the following statements is true of enterprise resource planning (ERP) products offered by SAP? A) SAP HANNA is a SaaS (software as a service) cloud offering. B) SAP does not have technical, marketing, sales, and customer support challenges. C) Classic SAP uses thick-client, client/server architecture. D) Because of its installed base, SAP can make a rapid move to cloud-based solutions. Answer: C 40) Which of the following statements is true of Microsoft's enterprise resource planning (ERP) products? A) Dynamics CRM is a true ERP product used by large organizations. B) GP is the easiest of Microsoft's ERP products to install. C) Nav is likely to continue as a general-ledger program in the future. D) AX is developed in-house by Microsoft. Answer: B 41) Which of the following statements is true of an enterprise resource planning (ERP) software in the cloud? A) Customers of thick-client, client/server ERP software can move to the cloud at low costs. B) Cloud-based ERP software is more expensive for customers. C) Mobile systems using cloud-based ERP require thin-client applications. D) It is safe to provide mobile systems access to ERP systems. Answer: C 42) Infor Business Cloud is an enterprise resource planning (ERP) solution that can be installed in a bare-bones way and offered as IaaS (infrastructure as a service). Answer: True 43) Microsoft relies heavily on its network of independent software vendors to create customer solutions using the Solomon platform. Answer: False 44) Oracle's enterprise resource planning (ERP) products are designed according to SOA principles and hence are adaptable and customizable. Answer: True 45) SAP's enterprise resource planning (ERP) products are relatively economical compared to other companies' products. Answer: False 46) Infor's enterprise resource planning (ERP) products span the mid-range, serving higher-end small companies and lower-end large companies. Answer: True 47) PeopleSoft is an HR product developed in-house by Oracle. Answer: False 48) Microsoft offers its CRM product online as SaaS (software as a service), but it has no full enterprise resource planning (ERP) implementation in the cloud. Answer: True 49) Briefly describe Microsoft's enterprise resource planning (ERP) products. Answer: Microsoft offers five ERP products, all obtained via acquisition: AX, Nav, GP, Solomon, and Dynamics CRM. AX and Nav have the most capabilities; GP is more limited but is easier to use. The future of Solomon is uncertain. Dynamics CRM is primarily a CRM product, but it is extensible in ways that enable customers to use it for ERP as well as CRM. Microsoft is in the process of consolidating its offerings. Most likely AX will continue going forward as a true ERP product for larger organizations. Dynamics CRM will serve as a CRM product as well as a platform for custom ERP solutions. GP, which is the easiest of the products to install, will continue as a general-ledger program that can also be used as a platform for simpler ERP solutions. Microsoft relies heavily on its network of independent software vendors to create customer solutions using the Dynamics platform. These vendors take off-the-shelf Dynamics products and adapt and customize them for particular situations. Microsoft offers its CRM product online as SaaS, but it has no full ERP implementation in the cloud. 50) Briefly explain Infor's enterprise resource planning (ERP) products. Answer: After Infor was purchased by private-equity investors, it bought many ERP companies. It now sells many ERP products for many different industries. These products vary in purpose, scope, and quality. They span the midrange, serving higher-end small companies and lower-end large companies. Recently, Infor began to offer the Infor Business Cloud, an ERP solution that can be used as a software service, can be installed on the customer's servers and managed by Infor personnel, or can be installed in a bare-bones ways and offered as IaaS. Chapter Extension 10 Supply Chain Management 1) Which of the following statements is true of an inter-enterprise system? A) It is constant in scope and complexity. B) It cannot be customized to the needs of organizations. C) It is shared by two or more independent organizations. D) It is easier to manage than other types of systems. Answer: C 2) Several organizations can share a single inter-enterprise information system. Answer: True 3) The Automated Clearing House system among banks is an example of a standardized inter-enterprise system. Answer: True 4) Explain inter-enterprise (IS) processes with an example. Answer: An inter-enterprise is an information system that is shared by two or more independent organizations. Inter-enterprise (IS) varies in scope and complexity. An example of a simple inter-enterprise (IS) is a sales process at a small retailer in which the retailer processes customers' credit card transactions. The retailer, customer, and credit card company (and possibly the bank that issued the card) are all part of the business process that processes the payment. 5) Which of the following refers to a network of organizations and facilities that transforms raw materials into products delivered to customers? A) supply chain B) distribution channel C) strategic business unit D) collaboration system Answer: A 6) In a traditional supply chain, distributors order products from ___________. A) retailers B) manufacturers C) customers D) suppliers Answer: B 7) Which of the following statements is true of supply chains? A) Supply chains consist only of customers, retailers, distributors, manufacturers, and suppliers. B) Not every supply chain has distributors and retailers. C) Each element in the supply chain can be connected to only one entity up and down. D) The only source of revenue in a supply chain is the retailer. Answer: B 8) Every supply chain has four basic components: suppliers, manufacturers, distributors, and retailers. Answer: False 9) At each level of a supply chain, an organization can work with many organizations both up and down the supply chain. Answer: True 10) Each level of a supply chain has a distinct source of revenue. Answer: False 11) A major factor that affects supply chain performance is the ___________. A) number of work-centers B) working capital C) competitors D) facilities Answer: D 12) Which of the following is an example of inventory? A) machinery B) factory C) raw material D) capital Answer: C 13) Which of the following statements is true of inventory? A) Managing an inventory requires balancing between availability and cost. B) Inventory size increases as consumers purchase items. C) Inventory management decisions are limited to the size of the inventory. D) Increasing the inventory size always increases a company's profitability. Answer: A 14) Which of the following factors influences supply chain performance by affecting the ways that organizations in the supply chain request, respond, and update one another? A) information B) transportation C) inventory D) facilities Answer: A 15) The ___________ is a factor of information that can be transactional, such as orders and order returns, or it can be informational, such as the sharing of inventory and customer order data. A) purpose B) means C) availability D) direction Answer: A 16) Which of the following refers to the way organizations share their information? A) means B) purpose C) availability D) intent Answer: C 17) ___________ refers to the methods by which information is transmitted. A) Direction B) Means C) Purpose D) Availability Answer: B 18) As a factor affecting supply chain performance, inventory includes all of the materials in the supply chain, including raw materials, in-process work, and finished goods. Answer: True 19) Increasing the size of an inventory reduces the cost of the inventory. Answer: False 20) Decreasing the size of an inventory decreases the odds that an item will be unavailable for purchase. Answer: False 21) What is a supply chain? What are the four drivers that are crucial to the success of a supply chain? Answer: A supply chain is a network of organizations and facilities that transform raw materials into products delivered to customers. In a typical supply chain, customers order from retailers, who, in turn, order from distributors, who, in turn, order from manufacturers, who, in turn, order from suppliers. The supply chain also includes transportation companies, warehouses, and inventories, and some means for transmitting messages and information among the organizations involved. Four major factors, or drivers, affect supply chain performance: facilities, inventory, transportation, and information. 22) ___________ is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue. A) Supply chain sustainability B) Supply chain compatibility C) Supply chain profitability D) Supply chain feasibility Answer: C 23) Each organization in a supply chain is an independent company with its own objectives. Answer: True 24) Profitability of a supply chain increases if all the organizations in the supply chain operate at their maximum profitability. Answer: False 25) Define supply chain profitability. How is it different from individual organizational profitability? Answer: Supply chain profitability is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue. In general, the maximum profit to the supply chain will not occur if each organization in the supply chain maximizes its own profits in isolation. Usually, the profitability of the supply chain increases if one or more of the organizations operate at less than their own maximum profitability. 26) The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ___________. A) synergistic effect B) flanging effect C) stack effect D) bullwhip effect Answer: D 27) Which of the following statements is true of the bullwhip effect? A) It forces suppliers and manufacturers to carry smaller inventories than necessary. B) It is a natural dynamic that occurs because of the multistage nature of the supply chain. C) It is strongly associated with erratic consumer demand. D) It increases the overall profitability of the supply chain. Answer: B 28) Because of the nature of the bullwhip effect, the maximum variation in demand is faced by ___________. A) suppliers B) manufacturers C) distributors D) retailers Answer: A 29) The bullwhip effect explains the amplification of demand at various stages of a supply chain. Answer: True 30) The large fluctuations of the bullwhip effect force organizations to stock fewer inventories than needed. Answer: False 31) The bullwhip effect increases if all the participants in the supply chain have an access to consumer-demand information from the retailer. Answer: False 32) Inter-enterprise information systems are necessary to share consumer-demand information. Answer: True 33) True demand is the demand from the only party that introduces money into the system. Answer: True 34) Explain the bullwhip effect with an example. Answer: The bullwhip effect is a phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain, from customer to supplier. In a famous study, the bullwhip effect was observed in Procter & Gamble's supply chain for diapers. The number of babies determines diaper demand, and that number is constant or possibly slowly changing. Retailers do not order from the distributor with the sale of every diaper package. The retailer waits until the diaper inventory falls below a certain level, called the reorder quantity. Then the retailer orders a supply of diapers, perhaps ordering a few more than it expects to sell to ensure that it does not have an outage. The distributor receives the retailer's orders and follows the same process. It waits until its supply falls below the reorder quantity, and then it reorders from the manufacturer, with perhaps an increased amount to prevent outages. The manufacturer, in turn, uses a similar process with the raw-materials suppliers. Because of the nature of this process, small changes in demand at the retailer are amplified at each stage of the supply chain. These small changes become quite large variations on the supplier end. The large fluctuations of the bullwhip effect force distributors, manufacturers, and suppliers to carry larger inventories than should be necessary to meet the real consumer demand. Thus, the bullwhip effect reduces the overall profitability of the supply chain. 35) The ___________ is used as the measure of supply chain speed. A) dollar value of goods exchanged in a given period of time B) amount of goods exchanged in a given period of time C) total profit generated by the components of supply chain D) time taken to transport goods from one component to another Answer: A 36) Which of the following is an effect of information systems on supply chain performance? A) reduced costs of buying and selling B) reduced supply chain speed C) increased size and costs of inventories D) optimized supply chain profitability Answer: A 37) The cloud storage has increased the costs of integrating an organization's information systems. Answer: False 38) Information systems have the capability to eliminate the bullwhip effect. Answer: True 39) Information systems have enabled suppliers to increase the size of their inventories which decreased their profits. Answer: False 40) How do information systems affect supply chain performance? Answer: Information systems, such as customer relationship management (CRM) and e-commerce sales systems have dramatically reduced the costs of buying and selling. Sourcing, buying, and selling have all become faster, easier, more effective, and less costly. Distributed systems in the cloud have enabled businesses to integrate their information systems with less cost and greater speed and agility than ever before. The presence of information systems has also expanded supply chain speed. Information systems have enabled both suppliers and customers to reduce the size of their inventories and, thus, reduce their inventory costs. Information systems also improve delivery scheduling. Using information systems, suppliers can deliver materials and components at the time and in the sequence needed. Such delivery enables just-in-time inventory, and it allows manufacturers to reduce raw materials inventory size as well as the handling of raw materials. Test Bank for Experiencing MIS David Kroenke, Randall Boyle 9780133939132, 9781292107707, 9780134773636, 9780136509868, 9780136078685, 9781486019281, 9780132157940
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