MIS10E_testbank_CH09 - Chapter 9 Achieving Operational...

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Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications True-False Questions 1. Manufacturing companies typically think about their supply chains as a process ultimately focused on serving the customer. Answer: False Difficulty: Medium Reference: p. 355 2. Enterprise software allows data to be used by multiple functions and business processes for precise organizational coordination and control. Answer: True Difficulty: Easy Reference: p. 359 3. Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business. Answer: True Difficulty: Hard Reference: p. 359 4. The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: False Difficulty: Medium Reference: p. 361 5. Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs. Answer: True Difficulty: Medium Reference: p. 361 6. Low inventory acts a buffer for the lack of flexibility in the supply chain. Answer: False Difficulty: Medium Reference: p. 362 7. The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain. Answer: True Difficulty: Medium Reference: p. 362 141
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8. Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Answer: False Difficulty: Hard Reference: p. 364 9. In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes. Answer: True Difficulty: Easy Reference: p. 365 10. Intranets can be used to integrate information from isolated business processes within the firm to help them manage their internal supply chains. Answer: True Difficulty: Easy Reference: p. 365 11. The Internet provides a standard set of tools that can be used by companies all over the world to coordinate overseas sourcing, transportation, communications, financing, and compliance with customs regulations. Answer: True Difficulty: Easy Reference: p. 365 12. In a push-based model, actual customer orders or purchases trigger events in the supply chain. Answer: False Difficulty: Medium Reference: p. 366 13. In a pull-based model, production master schedules are based on forecasts of demand for products. Answer: False Difficulty: Medium Reference: p. 366 14. Dell Computer’s build-to-order system is an example of a pull-based model. Answer: True Difficulty: Medium Reference: p. 366 15. Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.
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MIS10E_testbank_CH09 - Chapter 9 Achieving Operational...

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