Managing Supply Chains A Logistics Approach International Edition 9th Edition by Coyle - Test Bank

Managing Supply Chains A Logistics Approach International Edition 9th Edition by Coyle – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

CHAPTER 6 TEST QUESTIONS

 

True-False

 

1. Existing supply chain information technologies support timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.

ANSWER: True

 

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.”

ANSWER: False

 

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

ANSWER: True

 

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

ANSWER: False

 

5. Collaboration is facilitated by information flow.

ANSWER: True

 

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

ANSWER: False

 

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

ANSWER: False

 

8. People are not usually the problem when it comes to improving supply chain visibility and performance problems; rather it is technological capabilities.

ANSWER: False

 

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

ANSWER: True

 

10. 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.

ANSWER: True

 

11. Event management software is now the “norm” for stage shows, rock concerts, and similar events where there are many elements to coordinate.

ANSWER: False

 

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

ANSWER: False

 

 

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

ANSWER: True

 

14. Spreadsheets and database programs no longer have a place in SCIS as the new programs have supplanted them.

ANSWER: False

 

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

ANSWER: False

 

16. Software applications are now available over the Internet.

ANSWER: True

 

17. RFID applications are not currently of great interest due to cost.

ANSWER: False

 

Multiple Choice

 

18. 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

 

 

ANSWER:  a

 

19. Which of the below is not part of the 7 Rs?

a.	information
b.	cost
c.	SCIS
d.	place

 

 

ANSWER: c

 

 

20. Which of the following is NOT one of the drivers of supply chain excellence?

a.	speed
b.	collaboration
c.	execution
d.	price/performance of applications

 

 

ANSWER: d

 

21. ____ is/are a major barrier to the effective use of information technology.

a.	Cost
b.	People
c.	Effective applications
d.	Management support

 

 

ANSWER: b

 

22. 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.

 

 

ANSWER: c

 

 

23. Data synchronization focuses

a.	on insuring that all elements are synchronized.
b.	on having identical fields and characters so the message is received correctly.
c.	collaboration and RFID applications.
d.	timely and accurate updates.

 

 

ANSWER: d

 

24. Supply Chain software

a.	addresses virtually every function and task that occurs in the supply chain.
b.	helps organizations plan, execute, and control supply chain activities in real time.
c.	helps to optimize the delivery of goods and maintain visibility of inventory
d.	all of these answers

 

 

ANSWER: d

 

25. 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.	are just now starting to become recognized as a critical part of SCIS applications.

 

 

ANSWER: b

 

26. Managers have several options for software implementation. They include

a.	internal development.
b.	Internet based applications.
c.	vendor suppliers.
d.	all of these answers

 

 

ANSWER: d

 

 

Essay

 

27. What are the 7 Rs of an information system? Name them, and pick two to discuss in more detail.

 

ANSWER:

Information quality is a critical characteristic of the knowledge flowing across the supply chain. If you think about it, the seven Rs definition of logistics applies to information as much as products with some slight alterations–getting the right information to the right partners, in the right quantity, in the right format, at the right place, at the right time, and at the right cost. Change any “right” to “wrong” and the capabilities of the decision maker will decline. Thus, information quality is paramount to effective management of the supply chain. To ensure that valuable, actionable knowledge readily flows across the supply chain, information must be accessible, relevant, accurate, timely, and transferable.

 

 

28. What are the six drivers of supply chain excellence?

 

ANSWER:

Connectivity Information technology is the primary focus of this driver. Geographically dispersed supply chain partners and facilities are linked electronically via the Internet, extranets, and other means.

 

Visibility The critical ability to monitor what is happening across the supply chain is achieved via technology.

 

Collaboration By virtue of providing connectivity and visibility, technology facilitates real-time data sharing between supply chain participants.

 

Optimization A variety of software is available to help organizations maximize the performance of supply chain activities.

 

Execution Supply chain technology promotes efficient execution and integration of key activities on an hourly and a daily basis to achieve operational excellence.

 

Speed Properly implemented technologies help organizations rapidly respond to customer requirements for faster, more consistent flows of materials and information.

 

 

 

29. What are the 10 Golden Rules? Discuss how they are important.

 

ANSWER:

10 golden rules for success.

1. Secure the commitment of senior management.
2. Remember that it is not just an information technology project.
3. Align the project with business goals.
4. Understand the software capabilities.
5. Select partners carefully.
6. Follow a proven implementation methodology.
7. Take a step-by-step approach for incremental value gains.
8. Be prepared to change business processes.
9. Keep end users informed and involved.
10. Measure success with key performance indicators (KPIs).

 

 

 

30. What are the key requirements of an SCIS system?

 

ANSWER:

By themselves, software and other SCIS components cannot provide actionable knowledge for supply chain managers. Data must be collected and synchronized so that it can be used by skilled individuals in the planning and execution of supply chain processes. Scorecards and dashboards are also needed to monitor performance and make necessary adjustments. With these requirements satisfied, managers are able to take full advantage of SCIS data analysis and decision support capabilities. They are also properly positioned to pursue supply chain excellence.

 

Data collection of relevant information is needed at every point in the supply chain. Whether it is captured via bar codes, radio-frequency identification, or other technology, the information must be relevant, accurate, and accessible to users in real time. A lack of timely information leads to dysfunctional decisions that spread across the supply chain.

 

Data synchronization focuses on the timely and accurate updating of item information within and across enterprises to ensure dependable, consistent product information within a company’s systems and between business partners. It is critical for every organization in the supply chain to have standardized, complete, accurate, and consistently aligned data in their SCIS to perform at peak effectiveness. It is impossible for supply chain partners to effectively collaborate, utilize RFID, or leverage demand driven replenishment techniques if the product, price, or invoice data being transferred are inaccurate. Thus, organizations must clean and align data internally before sharing it with partners.

 

Furthermore, processes have to be in place to maintain high-data quality. This requirement has both technology and organizational structure implications. First, the organization must be willing to make data management processes a priority. Second, there must be strong business ownership of product data and aligned SCIS that enables access to timely, accurate data. Those who succeed will achieve inventory and logistics cost reductions, as well as fewer out-of-stock situations.

 

 

 

31. What are supply chain execution tools and suites?

 

ANSWER:

Supply chain execution tools and suites carry out key tasks from the time an order is placed until it is fulfilled. This order-driven category of software focuses on the day-today activities required to buy, make, and deliver the materials that flow through the supply chain. Traditionally, execution tools have focused on a company’s internal logistics activities — order management, warehouse management, inventory management, labor optimization, and transportation management. As attention shifts to integrated supply chain capabilities, the category is encompassing a broader array of functionality including procurement and supplier relationship management, manufacturing execution and shop floor control, and customer relationship management.

 

Supply chain execution doesn’t rely upon a single software program. Instead, it consists of a group of tightly integrated tools that link well with supply chain partners’ systems to share relevant data and provide visibility. Interest and investment in execution tools is growing because of the strong capabilities being developed, cost savings, and return on investment being achieved. Successful implementation can provide users with improved inventory visibility, improved data accuracy, faster throughput and higher inventory turns, better control of transportation costs, and improved customer service. The tools also support supply chain planning, event management, and performance metrics.

 

 

 

32. What is event management software?

 

ANSWER:

Supply chain event management tools collect data in real time from multiple sources across the supply chain and convert them into information that gives business managers a clear picture of how their supply chain is performing. These systems track the inventory as it flows through the supply chain, providing graphical displays of expected and actual inventory levels and other key data at each location. An important feature is their ability to define business rules that trigger alerts when specified events occur, or when they fail to occur. This capability allows supply chain managers to focus their attention on managing exceptions rather than having to monitor every movement and compare it against plan.

 

As the geographic scope and number of companies involved in a supply chain grow, the ability to monitor activities exceeds manual capabilities. Hence, supply chain event management tools are becoming more important, and more organizations are turning toward these solutions to help them detect, evaluate, and resolve issues before they snowball into major problems. The newest tools use optimization techniques to evaluate the severity of the situation and propose alternative solutions to decision makers or initiate action based on established guidelines.

 

 

33. What is Enterprise Resource Planning (ERP) software?

 

ANSWER:

ERP systems are multimodule application software platforms that help organizations manage the important parts of their businesses. Initially concentrated on manufacturing issues, ERP systems now focus on integrating information and activities across the organization (i.e., the enterprise) via a common software platform and centralized database system. Key business processes linked via ERP include accounting and finance, planning, engineering, human resources, purchasing, production, inventory/ materials management, order processing, and more. The centralized and shared database system ties the entire organization together, allowing information to be entered once and made available to all users. Business processes can also be automated for rapid, accurate execution.

 

As the ERP systems branch out to include supplier relationship management, customer relationship management, and other supply chain components, the connections between SCIS and ERP grow stronger. Supply chain members can access the organization through the ERP system to assess inventory availability, production schedules, and delivery information. In short, the ERP system provides a mechanism for supply chain members to efficiently share information so that visibility is improved, transactions are completed with more speed and accuracy, and decision making is enhanced.

 

 

34. What is XML? Describe some of its benefits.

 

ANSWER:

XML is a robust, logically verifiable text format based on international standards. It provides a flexible way to create structured, common information formats and share both the format and the data via the Internet, intranets, and other networks. XML can be used to define complex documents and data structures such as invoices, inventory descriptions, shipment records, and other supply chain information.

 

The benefits of XML are numerous–it is a simultaneously human- and machine-readable format, it supports multiple languages, its plain text file displays are unencumbered by licenses or restrictions, and it is platform-independent and thus relatively immune to changes in technology. XML is gaining traction in the supply chain because it supports the integration of various information systems, is less complex than EDI, and eliminates the need for value-added networks, which reduces cost while speeding data transmission.

 

 

35. What are some of the questions which must be asked in connection software visions?

 

ANSWER:

Who will lead our implementation effort? Senior management has neither the time nor direct knowledge of SCIS to supervise the selection and installation of new applications.

 

How will technology support our business needs and processes? As discussed previously, there is a propensity to adopt software without considering the processes that it will support, leading to automation of inefficiencies.

 

What is the status of our existing data? It is critical to assess data quality, relevance, and completeness to ensure that the needed information is available to use with the technology being considered.

 

How well does our existing system integrate with suppliers and customers? SCIS fall woefully short on vital capabilities if they are unable to communicate with supply chain partners in an efficient manner.

 

What external issues must our systems address? Given the financial and product flow data contained within most SCIS, they have a major impact on an organization’s ability to address government mandates Sarbanes-Oxley regulations. This visibility is also imperative for compliance with governmental security initiatives related to international trade such as the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Advanced Trade Data Initiative.

 

 

 

36. Define and discuss RFID as it affects supply chain technology.

 

ANSWER:

While the technology used in RFID has been available for decades and is widely used for aircraft identification, toll collection, and library book tracking, supply chain applications were largely conceptual until major organizations began to develop RFID mandates. Like barcoding, RFID is an automatic identification method. RFID tags consist of a microchip and a printed antenna that can be packaged into many forms, such as a label or imbedded in between the cardboard layers in a carton or product packaging. Unique product identification information, in the form of a universal electronic product code (EPC) identifying the manufacturer, product category, and individual item, is stored on these 96-bit tags. The tags are affixed to the pallet, case, or individual product and are read when they pass within proximity of an RFID reader. These tags contain unique identifiers not found on barcodes, and direct line of sight is not required to read RFID tags. The collected information is relayed back to the SCIS, updating the location status of the associated product. Initial results of RFID implementations have been positive, but despite these success stories, the migration to RFID could slow if key challenges are not addressed. RFID technology costs must continue to decline to make product tagging economically feasible; equipment issues such as reader range, sensitivity, and durability must improve; the case for supplier return on investment of RFID mandates must be made; and consumer privacy issues must be resolved.