Chapter 6 Quiz - Data Acquisition and Management
Q: Which of the following is true of bar codes? A) Bar codes are often integrated with RFID tags printed as a single label. B) From the center to either end of a bar code is identical so it can be read upside down. C) UPC bar codes include a unique serial number. D) EPC is the most common bar code standard, but it isn't the only standard.
A: A) Bar codes are often integrated with RFID tags printed as a single label. Rationale: Combination bar code/RFID printers allow the technologies to coexist. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is part of a good policy on data capture? A) Capturing partial data is better than capturing no data. B) Capturing ancillary data is a must, and no amount of data is too much. C) At a fast-paced site, entering data later is preferred to entering them during busy periods. D) A fast-paced site should add data capture steps even if they slow the process down.
A: A) Capturing partial data is better than capturing no data. Rationale: Having partial data is better than having no data. Even if a company's strategic goal is to have complete visibility across the supply chain network, it has to start somewhere. Partial data can provide incremental improvements and the ability to see what data are necessary for the next improvement in analysis. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following analytical tools would be able to find hidden patterns in the data that are collected from each of a company's retail locations? A) Data mining B) Data manipulation language C) Aggregation D) Expert systems
A: A) Data mining Rationale: Data mining is a method of finding hidden patterns or relationships in data. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following is true of ISO standards for the EPC Gen 2 standard for radio frequency identification tags? A) ISO 9000-1 covers the Gen 2 standard. B) ISO 14000-2 covers the Gen 2 standard. C) ISO 18000-6 covers the Gen 2 standard. D) The ISO has no plans to make a standard for Gen 2 tags.
A: C) ISO 18000-6 covers the Gen 2 standard. Rationale: EPC Gen 2 is recognized by the International Organization for Standardization (ISO) as the ISO 18000-6 class of standards. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: A relational database links tables: A) by creating a database subset separated by file structure but not by physical structure. B) in a hierarchy of many parents to many children. C) in a hierarchy of one (and only one) parent to many children. D) that share a common data element.
A: D) that share a common data element. Rationale: A relational database allows any tables (sets of database records for items such as orders or suppliers) to be related to one another provided they share at least one common data element or field such as Part_Number or Supplier_Number. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: All of the following are prerequisites for companies wanting to invest in radio frequency identification (RFID) except: A) internally integrated demand signals. B) collaborative planning tools. C) a single view of data across the supply chain. D) very high inventory accuracy.
A: D) very high inventory accuracy. Rationale: High inventory accuracy is a product of an RFID implementation and a reason for using it, not a prerequisite. The other items imply that the firm should be at a high stage of supply chain development before implementing RFID. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is true of radio frequency identification (RFID)? A) Some metals absorb interrogator/tag signals, and some liquids reflect signals. B) Passive RFID tags do not contain their own power source. C) RFID tags can be burned only once and cannot be reused. D) RFID readers can recognize and differentiate only one tag in their field at a time.
A: Passive RFID tags do not contain their own power source. Rationale: A passive tag is "a RFID tag which does not send out data and is not self-powered" (APICS Dictionary, 15th edition). For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: A company with multiple versions of the same enterprise resources planning (ERP) system and also a second ERP system due to a merger has experienced data quality and formatting problems, cannot leverage purchasing contracts effectively, and has no common metrics for management control purposes. Which of the following would be the best solution for this company's problems? A) Don't replace any versions or vendors but use internet-based interface devices. B) Replace all ERP versions and vendors with the same homogeneous system. C) Change the merged company's ERP system to the other system, but do not try to make all internal versions match. D) Try to make all internal versions match, but use electronic data interchange (EDI) to communicate between the two different ERP systems.
A: A) Don't replace any versions or vendors but use internet-based interface devices. Rationale: It is usually too expensive and time-consuming to replace all versions of and/or different vendors' ERP systems with the same vendor and version. Instead, focus on what really needs to change to enable the business strategy to move forward, which is generally better communications between the existing systems. This can be best accomplished using some form of internet-based interface devices. For more information, see Module 1, Section B, Chapter 6, Topic 3
Q: An organization is approached by a partner organization that suggests that the two organizations work to integrate software. The first organization is concerned about data protection and is hesitant to agree. Which solution would help allieviate this organization's concerns? A) Implement process-oriented middleware. B) Search for a more trustworthy partner organization. C) Implement anti-virus software. D) Implement data-oriented middleware.
A: A) Implement process-oriented middleware. Rationale: One of the features of process-oriented middleware is the ability to function as a firewall between partners. This should help allieviate the organization's concerns about data protection. For more information, see Module 1, Section B, Chapter 6, Topic 2
Q: Which of the following would be the least likely reason to implement radio frequency identification (RFID) at a company? A) Increasing internal inventory accuracy in a make-to-order, low stock environment B) Automated service scheduling for a fleet of cars with details stored dynamically on the tag C) Decreasing already low error rates on baggage handling for an airline where each error has a high cost D) Automated door openings and closings at a steam energy plant to save on energy costs
A: A) Increasing internal inventory accuracy in a make-to-order, low stock environment Rationale: Although all of the examples listed could have other factors that would recommend the use of RFID, inventory accuracy in a situation where the inventory is already very low and therefore likely very accurate is the least likely to provide a return in excess of the costs of the implementation. RFID implementations should be performed only if they provide benefits in excess of their costs over their life. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Assuming a set of normal business constraints such as a need to constrain costs and provide a positive return on investments, which data capture policy would best allow an organization to more quickly translate data into increased opportunities for profit? A) Incrementally improving data capture rather than pursuing system reengineering B) Discarding ancillary data to improve aggregation C) Delaying improvements to inventory systems until postponement systems are online D) Capturing and updating all data in real time
A: A) Incrementally improving data capture rather than pursuing system reengineering Rationale: Incremental improvements may be the best policy, because each increase in the amount of data captured can immediately be put to use in improving the bottom line. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is true of service-oriented architecture (SOA)? A) Messages must be descriptive rather than prescriptive. B) Software is organized into a single indivisible block of code. C) Services depend upon other services to function. D) Applications and their data are fully integrated.
A: A) Messages must be descriptive rather than prescriptive. Rationale: SOA rules state that messages must be descriptive, not prescriptive. In other words, they tell the system what needs to be accomplished but not how to accomplish it. For more information, see Module 1, Section B, Chapter 6, Topic 3
Q: A ski resort wants to automatically detect when skiers have a lift ticket and when to offer a returning skier a loyalty discount. Which technology would meet these objectives with the least trouble for skiers? A) RFID B) Rebate coupons C) Bar codes D) Vision systems
A: A) RFID Rationale: The ski resort can use mounted or handheld RFID readers at ski lifts to detect whether each skier has a valid RFID lift ticket card. The pass can be reused, and returning skiers can be detected and offered a discount without having to provide their personal information again or get a new card. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: In an advanced supply chain, which of the following would be the best data for a buyer to send to a sheet metal producer? A) Sheets of steel required for metal door construction company for the month B) Number of steel cans needed for canned paint production for the month C) Real-time point-of-sale (POS) data and profit margins for every buyer D) Sheets of steel and plates of glass needed for window construction for the month
A: A) Sheets of steel required for metal door construction company for the month Rationale: Providing access to data involves not only sharing of data but sharing of data in the right format for the user—in this case, sheets of steel rather than the number of finished products. The visibility should also not contain too much information, such as plates of glass or profit margins, both to keep extraneous data to a minimum and to protect each partner's private information. For more information, see Module 1, Section B, Chapter 6, Topic 3
Q: Which of the following situations is the most critical to address in a transportation management system because it could result in workers and managers ceasing to trust in the integrity of the system? A) Ten percent of shipped items have missing cube or weight data. B) Ten percent of data is collected automatically; the rest is entered at the time and place of the event. C) Ten percent of collected data on shipments is forwarded to supply chain partners in real time. D) Ten percent of actual truck arrivals differ from the system's planned arrival times.
A: A) Ten percent of shipped items have missing cube or weight data. Rationale: If the cube and weight data are wrong or missing from even a small percentage of items when a transportation management system calculates how to load trucks, the system could recommend overloading the trucks. If this occurs too frequently, workers and managers may stop trusting in the integrity of the system. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following is true of a manager's transportation execution decision support system (DSS)? A) The transportation execution DSS uses simpler models than strategic or tactical DSS systems. B) Dynamic transportation data include shipping manifests, carrier master files, and carrier capacity. C) The manager provides the DSS with transportation needs, and the system automatically implements carrier selections. D) The DSS dashboard should include sales forecasts by customer area, segment, and stock keeping unit.
A: A) The transportation execution DSS uses simpler models than strategic or tactical DSS systems. Rationale: Operational DSS must be able to provide fast decisions and so are generally simpler models that use current data for short-term planning. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: An organization wants to automatically record the movement of inventory through its supply chain using a warehouse automation system (WMS). It typically is looking for information on a limited number of high-value items as well as a large number of medium- and low-value items. What is the best way to track the inventory using the WMS? A) Use active RFID tags on each high-value item and passive tags on boxes of low- and medium-value items. B) Use bar codes and QR codes on all items. C) Use passive RFID tags on each high-, medium-, and low-value item. Use passive RFID tags on each high-value item and active tags on boxes low- and medium-value items. D)
A: A) Use active RFID tags on each high-value item and passive tags on boxes of low- and medium-value items. Rationale: Companies will likely use a mix of active and passive tags, for example, placing active tags on high-value assets and whole containers and passive tags on boxes full of merchandise. The cost of tags is a limiter in the expansion of RFID, since, in comparison, the cost of a bar-code label is practically negligible. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following types of automated identification and data capture (AIDC) systems could be used to read text on the side of a box as it moves on a conveyor belt? A) Vision systems B) Bar code systems C) Smart cards and magnetic stripes D) Radio frequency identification (RFID) systems
A: A) Vision systems Rationale: Only a vision system can read text printed on a box. The other systems require some form of tag or encoded symbol to work. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is true regarding unauthorized persons creating counterfeit EPC Gen 2 RFID tags with a manufacturer's code and product SKUs (stock keeping units)? A) RFID tags cannot be burned without a specific tag burner available only to the manufacturer. B) Counterfeit tags can be made, but the EPCglobal Network's online registry will identify a mismatch and detect the fraud. C) EPCglobal Network's RFID tags are susceptible to counterfeiting because of their public availability, and proprietary tags must be used to prevent counterfeiting. D) Counterfeit tags cannot be created since the password is encrypted on the tag.
A: B) Counterfeit tags can be made, but the EPCglobal Network's online registry will identify a mismatch and detect the fraud. Rationale: The EPCglobal Network's Gen 2 tag data standard adds a level of security against counterfeiting to RFID tags. Although a counterfeiter could make a tag with someone else's company and product SKUs, only EPCglobal's object naming service can issue headers for a tag. Because the product identifier is checked against this online registry, counterfeit tags would be immediately detected. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is true of service-oriented architecture (SOA)? A) It uses defined, proprietary, prescriptive standards. B) It uses extensible, universally available, descriptive standards. C) It uses defined, proprietary, descriptive standards. D) It uses extensible, universally available, prescriptive standards.
A: B) It uses extensible, universally available, descriptive standards. Rationale: SOA uses simple and universally available standards such as web services, which constrain the semantics but are extensible, meaning that they can be enhanced without destroying existing services. Descriptive systems are endorsed by SOA because they tell the system what it is they want to do but leave the system to determine how to do that task. For more information, see Module 1, Section B, Chapter 6, Topic 3
Q: Does a standard UPC bar code contain lot and batch information? A) Yes B) No C) Only if it includes a serial number D) Not directly, but retail systems can automatically get the data from a website.
A: B) No Rationale: A UPC code cannot identify products by their serial number and therefore cannot identify lot and batch information. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following can be used to immediately improve an organization's inventory accuracy even if it doesn't reduce lead times? A) Reducing days of payables outstanding B) Real-time point-of-sale data updates in the enterprise resources planning (ERP) system C) Increasing cost of goods sold D) Sharing data among trading partners on a virtual network
A: B) Real-time point-of-sale data updates in the enterprise resources planning (ERP) system Rationale: The APICS Dictionary, 15th edition, defines the point-of-sale (POS) as "the relief of inventory and computation of sales data at the time and place of sale, generally through the use of bar coding or magnetic media and equipment." Transferring information from the POS to the organization's information systems in real time allows the organization to deduct inventory from the books immediately at the time of sale. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: An organization wants to create automatic communication between its inventory management system and its main supplier's inventory management system, which are incompatible. They decide to use data-oriented middleware despite the labor-intensive setup process. What long-term risk is associated with this selection? A) This solution will not work because data-oriented middleware is able to be used only within a single organization. B) The process may need to be repeated when adding, changing, or upgrading software in the future. C) The middleware is unlikely to perform as expected. D) Data-oriented middleware tends to operate as a firewall between partners and cannot perform the desired tasks.
A: B) The process may need to be repeated when adding, changing, or upgrading software in the future. Rationale: Implementing data-oriented middleware is a labor-intensive process that will result in effective and fast communications, but the process may need to be repeated not only to add a new software system but also after upgrades. Therefore, this middleware option is expensive and may not provide long-term benefits. For more information, see Module 1, Section B, Chapter 6, Topic 2
Q: A company that sells spare parts for cash registers has multiple inventory inaccuracies, multiple names for parts in their systems, and redundant products. Which of the following are the best first steps to help the company improve these issues? A) Perform data cleansing and use a standardized product hierarchy with data duplicated automatically where it is used in different product families. B) Purchase a new warehouse management system and institute role-based access policies, procedures, and software limits for adding, deleting, and modifying information. C) Perform data cleansing and institute role-based access policies, procedures, and software limits for adding, deleting, and modifying information. D) Purchase a new warehouse management system and use a standardized product hierarchy with data duplicated automatically where it is used in different product families.
A: C) Perform data cleansing and institute role-based access policies, procedures, and software limits for adding, deleting, and modifying information. Rationale: After data cleansing, the firm must take steps to ensure that the data quality doesn't degrade to its original state by instituting role-based access policies, procedures, and software limits for adding, deleting, and modifying information and investing in data maintenance/continuous improvement process training for current and future users. A new software system will not help maintain data accuracy in and of itself without these steps. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: A small auto parts store is upgrading to digital tracking of parts numbers, order numbers, and customer data. What option should it use for digital storage of these data? A) Hierarchical database B) Point-of-sale (POS) system C) Relational database D) Network database
A: C) Relational database Rationale: Because there will be a large amount of data with common attributes, a relational database is the best solution. It is the most common form of database, grouping data using common attributes. It stores each type of data in a single location with many links to it. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: Which of the following is the primary limiter on the spread of radio frequency identification (RFID)? A) Continued fight over RFID standards B) High cost of readers and software C) Relatively high RFID tag prices D) Small battery needed for all tags
A: C) Relatively high RFID tag prices Rationale: Because the price of a bar code label is very low, the price of an RFID tag is quite a significant factor in its applicable uses. Currently it is constrained to case- and pallet-level tagging and for high-value goods where the tag price is relatively small compared to the value of the item. For more information, see Module 1, Section B, Chapter 6, Topic 1
Q: A business gathers information from its accounts information system to identify those customers who have bought a large volume of items in an innovative product group. This is an example of: A) data warehousing. B) setting a channel strategy. C) data mining. D) developing a product/service agreement.
A: C) data mining. Rationale: Data mining is the process of studying data to search for previously unknown relationships. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following is important in the selection of a decision support system (DSS)? A) Transportation costs B) Inventory costs C) Changes in demand D) All of the above
A: D) All of the above Rationale: The selection of a specific DSS by an organization is dependent upon the company's manufacturing capabilities, changes in demand, and transportation and inventory costs. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following forms of interface devices would be best for a small firm that wants to make a connection to a second small firm where both have highly customized software? A) Data-oriented middleware B) Process-oriented middleware C) Online trade exchange D) Custom linkage
A: D) Custom linkage Rationale: A related term to data-oriented middleware is custom linkages, which are custom-programmed data-oriented links that are developed from scratch rather than using middleware software as a template. Custom linkages could be less expensive than purchasing and configuring a data-oriented middleware package or can be used when no package is a close enough fit for the applications. For more information, see Module 1, Section B, Chapter 6, Topic 2
Q: Which of the following will filter the output of an analysis into role-specific information so that a decision support system (DSS) can make sense of voluminous data? A) Data aggregation B) Data mining C) Data-oriented middleware D) Dashboard
A: D) Dashboard Rationale: A presentation dashboard provides role-specific sorting of the voluminous data created by data mining in a DSS. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following forms of interface devices would be best for a firm implementing an internal solution that can be directly extended to integrate external partners who resist standardizing? A) Custom linkages B) Online exchanges C) Data-oriented middleware D) Process-oriented middleware
A: D) Process-oriented middleware Rationale: Process-oriented middleware (also called business process management or BPM software) can help in implementing an internal solution that can be extended to integrate external partners who resist standardizing because it maps software to business processes and then allows those processes to be adapted as needed. The linkages automatically change along with the process changes. For more information, see Module 1, Section B, Chapter 6, Topic 2
Q: Each company in an extended supply chain has its own decision support system, each run separately using the same data. Often some firms end up with a surplus while others have shortages. Which of the following describes this supply chain's problem? A) Lack of normalization B) Lack of visibility C) Disintermediation D) Suboptimization
A: D) Suboptimization Rationale: When each part of a system is optimized without regard to the needs of the whole, the process is called suboptimization. Optimization must occur to all parts of the process, or it applies to none of them. For more information, see Module 1, Section B, Chapter 6, Topic 4
Q: Which of the following allows developers to wrap otherwise incompatible electronic messages in a shell for universal message receipt? A) Electronic product codes (EPC) B) Service-oriented architecture (SOA) C) Extensible markup language (XML) D) Web services
A: D) Web services Rationale: B2B web services consist of XML and other XML-based standards that wrap electronic messages in a shell for universal message receipt, advertise the existence of web services, and specify how requests and responses must be formatted. For more information, see Module 1, Section B, Chapter 6, Topic 3
