Module 11: Enterprise Systems
True / False
1. Supply chains exist in both service and manufacturing organizations.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Supply chains exist in both service and manufacturing organizations, although the chain’s
complexity can vary widely in different organizations and industries. A supply chain is an
integrated network consisting of an organization, its suppliers, transportation companies,
and brokers used to deliver goods and services to customers. See 11-1: Supply Chain
Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
2. A key decision in supply chain management (SCM) related to manufacturing is pricing.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Four key decisions in SCM related to manufacturing are location, inventory, production,
and transportation. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
3. In the context of supply chain management technologies, using the Internet and Web protocols for electronic data
interchange (EDI) increases the cost of transmitting documents.
a. True
b. False
ANSWER: False
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,Module 11: Enterprise Systems
RATIONALE: Correct
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. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
4. Transmitting documents across the Internet involves lower security risks than traditional electronic data interchange
(EDI).
a. True
b. False
ANSWER: False
RATIONALE: Correct
Transmitting documents across the Internet involves more security risks than traditional
EDI, which uses proprietary protocols and networks. Using the Internet and Web protocols
for EDI lowers the cost of transmitting documents. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
5. One of the disadvantages of an e-marketplace is that it cannot provide a single platform for prices.
a. True
b. False
ANSWER: False
RATIONALE: Correct
One of the ways in which e-marketplaces help businesses maintain a competitive edge in
the supply chain is by providing a single platform for prices, availability, and stock levels
that is accessible to all participants. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Module 11: Enterprise Systems
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
6. Auctions help determine the price of goods and services when there is no set price in the marketplace.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Auctions help determine the price of goods and services when there is no set price in the
marketplace. By using the Internet, an online auction brings traditional auctions to
customers around the globe and makes it possible to sell far more goods and services than
at a traditional auction. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
7. With a structured process of sharing information among supply chain members, retailers can compare customer
demands or sales forecasts with a manufacturer’s order forecast.
a. True
b. False
ANSWER: True
RATIONALE: Correct
With a structured process of sharing information among supply chain members, retailers
can compare customer demands or sales forecasts with a manufacturer’s order forecast.
Any data collected with point-of-sale systems is shared with all members of the supply
chain, which is useful in coordinating production and planning for inventory needs. See 11-
1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
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, Module 11: Enterprise Systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
8. Businesses find attracting new customers less expensive than maintaining current customers.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Businesses know that keeping and maintaining current customers is less expensive than
attracting new customers, and an effective customer relationship management system is
useful in meeting this goal. See 11-2: Customer Relationship Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe customer relationship management systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.2
TOPICS: Customer relationship management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
9. A grocery store offering loyalty cards with discounts to its customers is an example of how transaction data can be used
in a customer relationship management (CRM) system.
a. True
b. False
ANSWER: True
RATIONALE: Correct
A grocery store offering loyalty cards with discounts to its customers is an example of how
transaction data can be used in a CRM system. Knowing that a customer bought 4 gallons
of milk the previous week does not give a grocery store much information, but with loyalty
cards, the store can track all sorts of information on specific customers. See 11-2:
Customer Relationship Management
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe customer relationship management systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.2
TOPICS: Customer relationship management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
10. Organizations sometimes pay external agencies for additional data about their potential customers.
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True / False
1. Supply chains exist in both service and manufacturing organizations.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Supply chains exist in both service and manufacturing organizations, although the chain’s
complexity can vary widely in different organizations and industries. A supply chain is an
integrated network consisting of an organization, its suppliers, transportation companies,
and brokers used to deliver goods and services to customers. See 11-1: Supply Chain
Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
2. A key decision in supply chain management (SCM) related to manufacturing is pricing.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Four key decisions in SCM related to manufacturing are location, inventory, production,
and transportation. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
3. In the context of supply chain management technologies, using the Internet and Web protocols for electronic data
interchange (EDI) increases the cost of transmitting documents.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Module 11: Enterprise Systems
RATIONALE: Correct
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. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
4. Transmitting documents across the Internet involves lower security risks than traditional electronic data interchange
(EDI).
a. True
b. False
ANSWER: False
RATIONALE: Correct
Transmitting documents across the Internet involves more security risks than traditional
EDI, which uses proprietary protocols and networks. Using the Internet and Web protocols
for EDI lowers the cost of transmitting documents. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
5. One of the disadvantages of an e-marketplace is that it cannot provide a single platform for prices.
a. True
b. False
ANSWER: False
RATIONALE: Correct
One of the ways in which e-marketplaces help businesses maintain a competitive edge in
the supply chain is by providing a single platform for prices, availability, and stock levels
that is accessible to all participants. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Module 11: Enterprise Systems
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
6. Auctions help determine the price of goods and services when there is no set price in the marketplace.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Auctions help determine the price of goods and services when there is no set price in the
marketplace. By using the Internet, an online auction brings traditional auctions to
customers around the globe and makes it possible to sell far more goods and services than
at a traditional auction. See 11-1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
7. With a structured process of sharing information among supply chain members, retailers can compare customer
demands or sales forecasts with a manufacturer’s order forecast.
a. True
b. False
ANSWER: True
RATIONALE: Correct
With a structured process of sharing information among supply chain members, retailers
can compare customer demands or sales forecasts with a manufacturer’s order forecast.
Any data collected with point-of-sale systems is shared with all members of the supply
chain, which is useful in coordinating production and planning for inventory needs. See 11-
1: Supply Chain Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain how supply chain management is used within an organization.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.1
TOPICS: Supply chain management
Copyright Cengage Learning. Powered by Cognero. Page 3
, Module 11: Enterprise Systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
8. Businesses find attracting new customers less expensive than maintaining current customers.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Businesses know that keeping and maintaining current customers is less expensive than
attracting new customers, and an effective customer relationship management system is
useful in meeting this goal. See 11-2: Customer Relationship Management
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe customer relationship management systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.2
TOPICS: Customer relationship management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
9. A grocery store offering loyalty cards with discounts to its customers is an example of how transaction data can be used
in a customer relationship management (CRM) system.
a. True
b. False
ANSWER: True
RATIONALE: Correct
A grocery store offering loyalty cards with discounts to its customers is an example of how
transaction data can be used in a CRM system. Knowing that a customer bought 4 gallons
of milk the previous week does not give a grocery store much information, but with loyalty
cards, the store can track all sorts of information on specific customers. See 11-2:
Customer Relationship Management
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe customer relationship management systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.11.2
TOPICS: Customer relationship management systems
KEYWORDS: Understand
DATE CREATED: 12/5/2019 11:53 AM
DATE MODIFIED: 12/5/2019 11:53 AM
10. Organizations sometimes pay external agencies for additional data about their potential customers.
Copyright Cengage Learning. Powered by Cognero. Page 4
