ch 10

1. General Motors is transforming its IT operations and strategy toward __________. A. insourcing B. nearshoreoutsourcing C. offshoreoutsourcing D. offsourcing

A

11. ____________ is a type of system that automates the data entry and processing of travel and entertainment expenses; these are a type of ___________. A. Expense management automation; FAIS B. Expense management automation; TPS C. Financial and economic forecasting; FAIS D. Financial and economic forecasting; TPS

A

21. Comparative reports _____________. A. compare data B. display a greater level of detail C. include only information that falls outside certain threshold standards D. summarize the performance of critical activities

A

22. You notice your North American divisions are doing much better than your South American divisions. What kind of report did you use to make this determination? A. Comparative B. Drill-down C. Exception D. Keyindicator

A

24. Yield management systems are also known as ____________. A. dynamic pricing B. static pricing C. inventory management systems D. stopgap systems

A

27. Disney set an upper ticket price limit of $227 for The Lion King musical; they did NOT do this for the following reason. A. It is below the top prices for competing shows like Wicked. B. It makes it affordable for large groups and families. C. It offers Disney the flexibility to raise prices over the long term. D. It reduces the chance of buyer's remorse.

A

32. Which of the following is NOT a commercially available type of ERP software? A. Microsoft B. Oracle C. PeopleSoft D. SAP

A

34. Which of the following is an extended ERP module? A. Business intelligence B. Financial management C. HR management D. Operations management

A

41. The GEA Group used SAP to address its problems with ________. A. Accounting B. HR C. Marketing D. Sales

A

45. The ________________________ process involves customer requests and receiving payments. A. fulfillment B. procurement C. production D. purchasing

A

46. Which of the following is NOT an interorganizational system? A. CRM B. ERP C. SCM D. TPS

A

10. TPS do NOT process data using ___________. A. Batch processing B. OLAP C. OLTP

B

18. Drill-down reports ___________. A. compare data B. display a greater level of detail C. include only information that falls outside certain threshold standards D. summarize the performance of critical activities

B

2. General Motors created a(n) ____________________ to smooth out its quality assurance process. A. data mart B. enterprise data warehouse C. ERPsystem D. TPS system

B

25. Which of the following is NOT an example of an industry that uses yield management systems? A. Airline B. Automobile C. Hotel D. Theater

B

26. Yield management systems are best used to maximize revenue from a ________, _______ resource. A. fixed; nonperishable B. fixed; perishable C. variable; nonperishable D. variable; perishable

B

29. ERP address information silos by _____________. A. correcting a lack of communication between TPSs B. integrating functional areas C. reducing the amount of information presented D. simplifying system creation

B

3. General Motors decided _________ was a better strategy because ____________. A. insourcing; IT specialty companies can deliver technology that is cheaper B. insourcing; GM can deliver technology that is better aligned to its unique needs C. outsourcing; IT specialty companies can deliver technology that is cheaper D. outsourcing; GM can deliver technology that is better aligned to its unique needs

B

31. Which of the following is NOT a primary objective of ERP? A. Enable information to flow seamlessly B. Streamline the manufacturing process C. TightlyintegrateFAIS D. All of the above are objectives of ERP

B

36. Which of the following is a limitation of ERP? A. Agility B. Cost C. Decision-makingability D. Quality

B

38. The ________________________ approach is when a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm. A. Best of breed B. Custom C. Chocolate D. Vanilla

B

40. The GEA Group implemented a(n) ___________ to address its reporting issues. A. DSS B. ERPsystem C. FAIS D. TPS

B

48. ERP ___________ systems also benefit businesses by generating forecasting analyses of product consumption based on critical variables such as geographical area, season, day of the week, and type of customer. A. AI B. CRM C. DSS D. SCM

B

6. Which of the following is NOT a requirement of TPSs? A. Have to efficiently handle large variations in volumes of data B. Mustmaximizedowntime C. Must ensure overlapping updates can't occur D. Must record results accurately and securely

B

8. TPSs are _______________ to the success of any enterprise because they ___________. A. critical; only contain data, which isn't sufficient to make strategic business decisions B. critical; support core operations C. meaningless; only contain data, which isn't sufficient to make strategic business decisions D. meaningless; support core operations

B

9. Which of the following is the correct way TPS manage data? A. Business event or transactionorganization's databaseTPS B. Business event or transactionTPSorganization's database C. TPSbusiness event or transactionorganization's database D. TPSorganization's databasebusiness event or transaction

B

12. A(n) _______________ ratio is the availability of cash to pay debt. A. activity B. debt C. liquidity D. probability

C

14. ____________________ is a planning process that integrates production, purchasing, and inventory management of interdependent items. A. EMA B. ERP C. MRP D. MRP II

C

15. MRP is a _____________ function. A. computer-integrated manufacturing B. in-house logistics and materials management C. planning production and operation D. product lifecycle management

C

16. ___________ is a precursor to MRP. A. CIM B. EOQ C. MRP D. VMI

C

20. Exception reports _____________. A. compare data B. display a greater level of detail C. include only information that falls outside certain threshold standards D. summarize the performance of critical activities

C

23. At a quick glance, you notice one of your sales engineers is the only one who isn't making any sales to your North American customers. What kind of report did you use to make this determination? A. Comparative B. Drill-down C. Exception D. Keyindicator

C

28. ERP address the problem of ________ in ___________. A. information overload; FAIS B. information overload; TPS C. information silos; FAIS D. information silos; TPS

C

33. ERP originally only addressed ____________ business processes. A. complex B. external C. internal D. simple

C

35. Which of the following is a core ERP module? A. Customer relationship management B. E-business C. HR management D. Supply chain management

C

37. Which of the following is NOT a major cause of ERP implementation failure? A. Failure to involve affected employees in the planning and development phases B. Failure to perform testing for the new system C. Insufficient funding D. Insufficient training

C

42. Which of the following is NOT an advantage of the SAP solution to the GEA Group? A. Documentation B. Process simplification C. Reduction in the number of employees D. User-friendly

C

43. The ________________________ process originates and ends in the warehouse department but involves the production department as well. A. fulfillment B. procurement C. production D. purchasing

C

49. Which of the following is NOT a problem associated with cancelled flights? A. Required pilot rest time B. Three-hour max time for planes sitting on the tarmac C. Ticket-changefees D. Weather

C

13. GM's quality control issue is a(n) __________ function. A. accounting and finance B. human resources C. marketing D. production/operations management

D

17. ____________________ reports are produced at scheduled intervals. A. Ad-hoc B. Exception C. Keyindicator D. Routine

D

19. Key indicator reports ___________. A. compare data B. display a greater level of detail C. include only information that falls outside certain threshold standards D. summarize the performance of critical activities

D

30. ERP systems are an evolution of _____________. A. AI B. CRM C. DSS D. FAIS

D

39. With the _________________ approach, implementation is quicker but adaptation to the firm's specific processes is limited. A. Best of breed B. Custom C. Chocolate D. Vanilla

D

4. GM's new service lane automation application is a type of ___________ system. A. ERP B. expert C. FAIS D. TPS

D

44. The procurement process originates in the ____________________ department and ends in the ___________________ department. A. accounting; sales B. accounting; warehouse C. sales; accounting D. warehouse; accounting

D

47. ERP ______________ systems have the capability to place automatic requests to buy products from suppliers in real time. A. AI B. CRM C. DSS D. SCM

D

5. ______________________ are often populated with data from source data automation technologies such as bar code scanners. A. DSS B. ERP C. FAIS D. TPS

D

50. The Closing Case emphasizes the use of IT by airlines to _________. A. better predict the weather B. easecheck-in C. ensure the security of credit card payments D. manage the process of rebooking passengers

D

51. According to masFlight, the winter of ___________ was the worst for flight operations since 2010. A. 2011 B. 2012 C. 2013 D. 2014

D

7. Bar code scanners are an example of ______________________. A. Batch processing B. OLAP C. OLTP D. Source data automation

D

1. TPS provide the output data from corporate databases.

F

2. CIM is the next evolution after MRP and MRP II.

F

6. Security is an advantage of cloud-based ERP systems.

F

3. A dashboard highlighting only below-average sales is a type of exception report.

T

4. Routine reports can be scheduled hourly, daily, weekly, monthly, or yearly.

T

5. Disney implemented a YMS to more effectively sell The Lion King musical tickets.

T

7. If a company receives orders and payments from customers, this is called the fulfillment process.

T

8. Make-to-order is synonymous with a pull model.

T