Chapter 6

1. Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.

2. “It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology.”

3. Information must be real-time, not just current.

4. Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations.

5. Information technology plays an important role in each of the five drivers of sustainable supply chain management practice.

6. Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology.

7. The term supply chain information system (SCIS) is well defined and commonly understood.

8. Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users.

9. Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.

10. Supply chain execution tools have focused on a company’s internal logistics activities—order management, warehouse management, inventory management, labor optimization, and transportation management—and are being expanded into new integration software applications.

11. Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order.

12. Business intelligence applications are being used to gather information on competitors and their suppliers.

13. ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.

14. Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them.

15. SCIS software selection is relatively straightforward as the choices have been simplified.

16. Supply chain software is now available over the Internet. These applications are collectively known as on-demand software.

17. RFID applications have been widely embraced due to their low cost and high reliability.

18. Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011.

19. Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners.

20. The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses.
a. visibility
b. availability
c. accuracy
d. accountability

21. Which of the below is not part of the seven Rs of logistics?
a. information
b. cost
c. quality
d. place

22. Which of the following is NOT one of the five drivers of sustainable supply chain management practice?
a. adaptability
b. synchronization
c. velocity
d. execution

23. ___________ is/are a major barrier to the effective use of information technology.
a. cost
b. people
c. effective applications
d. management support

24. The term supply chain information system (SCIS) is defined as
a. software that manages the supply chain.
b. technology that has enhanced the ability of companies to pay more attention to customers.
c. information systems that automate the flow of information between a firm and its suppliers.
d. process management software that may or may not use ASP applications.

25. Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called
a. business intelligence tools
b. supply chain collaboration tools
c. spreadsheets and database tools
d. data synchronization tools

26. Supply Chain software includes technologies that
a. address virtually every function and task that occurs in the supply chain.
b. help organizations plan, execute, and control supply chain activities in real time.
c. help to maintain visibility of inventory
d. all of these answers

27. ERP systems
a. are taking the place of SCIS systems.
b. have information elements needed by SCIS applications.
c. require RFID to be fully functional.
d. focus primarily on manufacturing issues

28. Managers have several options for software development and implementation. They include
a. internal development.
b. third party logistics firms.
c. external software vendors.
d. all of these answers

29. The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and achieved higher inventory turns and a lower cost structure as a result of implementing
a. a new supply chain execution tool
b. business intelligence tools
c. an advanced planning solution
d. new ERP systems

30. Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase
a. best of breed solutions from leading providers in each category
b. supply chain software suites that combine planning, execution, event management, and related capabilities
c. spreadsheet software with expanded capabilities
d. event management tools that monitor the supply chain for events that are out of tolerance

31. On-demand supply chain software that is not installed on a company computer is gaining in popularity. An issue to be addressed with this purchase option is
a. Functionality may not be as robust as traditional software
b. Data control is an issue
c. Total cost of ownership could exceed purchase cost over the long run
d. All of these