1. __________ is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels.
A. Just-in-case manufacturing
B. Scan-based trading
C. Vendor-managed inventory
D. Lean manufacturing
2. Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products, but was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the product and legal damages of over $13 billion. This is an example of:
A. a product recall.
B. lean manufacturing.
C. production control.
D. the bullwhip effect.
3. Which of the following is the key use of the distribution planning module of supply chain management?
A. To ensure that the materials required for production are available when needed
B. To forecast and plan anticipated demand for products
C. To optimize the allocation of available supply to meet demand
D. To support production processes taking into account capacity and material constraints
4. __________ can be used just about anywhere a unique identification system might be needed, such as on clothing, pets, cars, keys, missiles, or manufactured parts.
A. HTML tags
B. RFID tags
D. XML tags
5. Which of the following business processes can be enhanced by the analytical CRM system?
A. Sales forecasting and performance analyses
B. Account and contact management
C. Price, quality, and satisfaction analysis of competitors
D. Customer history and preferences management
6. Demand planning and forecasting leads to the development of the overall:
A. sourcing plan.
B. transportation schedule.
C. production plan.
D. demand forecast.
7. Which of the following statements about an RFID passive tag is true?
A. They are small and relatively inexpensive.
B. They have a range up to 300 feet or more.
C. They cost more than active tags.
D. They have an internal battery source.
8. Which of the following key elements of a supply chain execution includes information related to payment schedules, consignment, and ownership of products and materials?
A. Financial flow
B. Personnel flow
C. Information flow
D. Product flow
9. Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?
A. To track global spending on suppliers
B. To encourage the bullwhip effect
C. To develop demand forecasts
D. To portray a positive corporate image
10. Which of the following examples portrays the 24/7/365 operation of a CRM system? processes
A. Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on
B. Improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster
C. Tracking customer behavior over time that helps to identify future opportunities for product and service offerings
D. Integrated information that removes information handoffs, speeding both sales and support
11. The key use of the manufacturing execution module of supply chain management is to:
A. forecast and plan anticipated demand for products.
B. support production processes taking into account capacity and material constraints.
C. ensure that the materials required for production are available where needed, when needed.
D. assign optimal safety stock and target stock levels in all inventories in the supply network.
12. MaxSteel Inc., has been supplying steel to a well-known car manufacturer, Agis Corp., for the past 3 years. Concerned employees at MaxSteel can directly access Agis Corp.'s inventory and sales information via electronic data interchange. This allows MaxSteel to monitor Agis Corp.'s inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following, if true, would most strengthen Agis' supply chain strategy?
A. Agis Corp.'s management decides to take strong measures for increasing their safety stock of all raw materials.
B. Agis Corp. is taking measures to ensure that the information shared with MaxSteel will not be shared outside their organization.
C. Agis Corp. has a strong desire to purchase MaxSteel in order to reduce dependency.
D. Agis Corp. is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain.
13. __________ is an XML-based specification for publishing financial information.
A. Extensible Rights Markup Language
B. Extensible Application Markup Language
C. Extensible Access Control Markup Language
D. Extensible Business Reporting Language
14. Supply chain planning begins with:
A. product demand planning and forecasting.
B. distribution planning.
C. production scheduling.
D. inventory planning.
15. Which of the following portrays the individualized service benefit of a CRM system?
A. Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
B. Web-based interfaces providing product information, sales status, support information, issue tracking, and so on
C. Integrating all information for all points of contact with the customers, so that all who interact with customers have the same view and understand current issues
D. Integrated information which removes information handoffs, which speeds both sales and support processes
16. Which of the following is the main objective of information systems that focus on improving supply chains?
A. Discouraging vendor-managed inventory systems
B. Accelerating product development and innovation
C. Discouraging sustainable production processes
D. Decentralizing the organizations
17. Lee's department store uses the every day low prices strategy. This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers. Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed them to cut out external suppliers and middlemen, further driving down business costs. This implies that the competitive strategy used by this store would most likely focus on:
A. supply chain efficiency.
B. supply chain visibility.
C. supply chain effectiveness.
D. operational CRM.
18. Organizations that effectively utilize __________ can more easily customize marketing campaigns from the segment level to even the individual customer.
A. operational CRM
B. integrated CRM
C. analytical CRM
D. collaborative CRM
19. Computer maker, Dell, realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a __________ system.
A. scan-based trading
B. customer-managed inventory
C. just-in-time inventory management
D. vendor-managed inventory
20. Which of the following is a component of the operational CRM system?
A. Sales force automation
B. Data warehouses
C. ERP systems
D. Data mining and visualization
21. BelAir has submitted a request for proposal to a number of vendors. It must now evaluate the proposals it has received. Which of the following methods can it use to compare the different systems?
A. Systems benchmarking
B. Alpha testing
C. Data modeling
D. Beta testing
22. The total cost of ownership of a system refers to:
A. all non-recurring costs associated with a system.
B. all costs associated with ongoing use and maintenance of a system.
C. the total cost of acquisition of a particular system.
D. the total cost of acquisition and all costs associated with use and maintenance of a system.
23. Which of the following scenarios demonstrates system efficiency?
A. Barker's new information system allowed the company to reach its monthly targets.
B. Barker's was able to easily reach its sales goals through the use of its information system.
C. Barker's new information system allowed the company to set achievable targets.
D. The new information system at Barker's helped employees work faster, with less effort.
24. "Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n) __________ for the company.
A. recurring cost
B. intangible cost
C. tangible benefit
D. non-recurring cost
25. BelAir has decided to buy an information system from an external vendor. The company has made a list of its requirements and asked prospective vendors to submit proposals for the system. Which of the following is the next step in the company's external acquisition process?
A. Systems planning
B. Systems analysis
C. Vendor selection
D. Proposal evaluation
26. Which of the following is true of Software as a Service?
A. It is not scalable in response to large increases in demand.
B. It involves fixed monthly and yearly costs for the services.
C. It requires the installation of specialized interfaces at the client end.
D. It allows clients to access services on an as-needed basis.
27. Which of the following types of system maintenance involves making enhancements to improve processing performance or interface usability?
A. Adaptive maintenance
B. Perfective maintenance
C. Preventive maintenance
D. Corrective maintenance
28. Which of the following steps takes place in an organization during both in-house systems development as well as external acquisition?
A. Vendor selection
B. Systems selection
C. Systems analysis
D. Development of an RFP
29. Business case arguments based on fear are dependent on:
A. the belief that implementing the new information system can have significant positive consequences for the firm.
B. beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on.
C. data, quantitative analysis, and/or indisputable factors.
D. the notion that if the system is not implemented, the firm will lose out to the competition or go out of business.
30. BelAir Tech has developed and run its own information system for the past ten years. However, the company has now decided to outsource its IS function to a service provider. Which of the following, if true, will strengthen BelAir's decision?
A. BelAir's IS team developed the existing system from scratch and has ironed out most faults over the years.
B. The service provider is highly recommended by its other clients.
C. Most BelAir employees are familiar with the current information system.
D. BelAir has seen a fall in company revenue over the last year.
31. Which of the following is an example of a business case argument based on fear?
A. If we do not implement this system, our competitors could gain a significant advantage over us.
B. This system has the potential to reduce required effort by 40 percent.
C. Using this system will help our employees serve customers more efficiently.
D. The system can help us meet both individual as well as organizational goals.
32. Processing logic is often expressed in __________, which is independent of the actual programming language being used.
A. semantics encoding
C. source code
33. Which of the following is an example of a recurring cost associated with an information system?
A. Installation charges
B. Purchase of office space
C. Employee salaries
D. Technology purchases
34. Which of the following is the main advantage of customizable software over off-the-shelf software?
A. Cost effectiveness
B. Ease of procurement
C. Problem specificity
D. Lower risks
35. Which of the following best describes developmental testing?
A. Testing the correctness of individual modules and the integration of multiple modules
B. Testing the system to see if it meets design requirements
C. Testing of the capabilities of the system in the user environment with actual data
D. Testing the system as a whole to see if it performs adequately
36. BelAir Tech needs a new information system to manage increasing customer orders and changing demands. The company's five-member IS team is competent and capable of developing a new system, but BelAir decides against developing a system in-house. Which of the following, if true, would most weaken BelAir's decision?
A. The company's requirements for the new system are very specialized.
B. The company's IS team is short-staffed and is finding it difficult to cope with increased work.
C. The costs of outsourcing systems development are greater than those of adapting an off-the-shelf system.
D. The company's IS department has the qualifications to develop the new system.
37. Which of the following is true for patch management?
A. It helps in testing the correctness of individual modules and the integration of multiple modules of a system.
B. It helps in the process of transforming the system design into a working computer system.
C. It helps in performing corrective or preventive maintenance for a system.
D. It helps in decommissioning the current system and installing the new system in the organization.
38. A break-even analysis:
A. identifies at what point tangible benefits equal tangible costs.
B. analyzes the relevant cash flow streams associated with the system at the organization's discount rate.
C. refers to the discounted sum, or present value, of a stream of costs associated with a project or proposal.
D. attempts to summarize the overall value of money for a project or proposal.
39. B&Z Inc. implemented a new information system two months ago but there have been no concrete increases in productivity as a result of the system. A similar system has been in place at the company headquarters for the past two years, and this system has resulted in significant, quantifiable benefits. Which of the following reasons is the most likely explanation for the lack of results?
A. The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.
B. The new system is being used to redistribute market share rather than make the whole market bigger.
C. It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.
D. The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.
40. After systems analysis, the next phase in the systems development life cycle is systems: