Deck 2: Logistics and Information Technology

Question 1

How do data and information differ?
a. data are a body of facts in a format suitable for decision making, while information is simply facts
b. they are the same
c. data are simply facts; information is a body of facts in a format suitable for decision making
d. data are associated with decision support systems; information is associated with ERP systems

Answer 1

data are simply facts; information is a body of facts in a format suitable for decision making

Question 2

All of the following statements about logistics information systems are true, except:
a. "timely" can refer to the up-to-date status of information
b. internal sources of logistics information are relatively plentiful
c. "timely" can refer to how quickly a manager receives requested information
d. a LIS must be concerned with the nature and quality of data
e. all of the above are true

Answer 2

internal sources of logistics information are relatively plentiful

Question 3

____ refers to the collection of large amounts of near-real-time data collected through a variety of sources such as sensors and smart phones, among others.
a. cloud computing
b. big data
c. data warehousing
d. decision support systems

Answer 3

big data

Question 4

The primary advantage of ____ is that enables a firm to test the feasibility of proposed changes at relatively little expense.
a. data mining
b. expert systems
c. simulation
d. artificial intelligence

Question 5

Which of the following statements about radio-frequency identification (RFID) is false?
a. RFID only offers read capabilities
b. Walmart has been a major catalyst for RFID usage in logistics
c. RFID can store large quantities of data
d. RFID has helped to reduce the occurrence of inventory stockouts
e. all of the above are true

Question 6

What has emerged as the measuring stock for logistics information technology in the 21^st century?
a. Facebook
b. the Internet
c. wireless communication
d. enterprise resource planning systems

Question 7

Electronic data interchange represents what general type of information management system?
a. communication system
b. transaction processing system
c. decision support system
d. office automation system

Question 8

Automatic identification systems are an essential component in ____.
a. every warehouse
b. point-of-sale systems
c. a logistics information system
d. dual distribution

Question 9

The most popular automatic identification system currently in use is ____
a. voice-data entry
b. radio-frequency identification
c. magnetic strips
d. bar code scanners

Question 10

A logistics information system begins with:
a. a logistics manager requesting information
b. a good computer system
c. lots of money
d. a customer order

Question 11

Which of the following is not considered a general software package?
a. spreadsheets
b. presentation packages
c. word processing
d. database management
e. all are general software packages

Question 12

Which of the following is not a benefit to utilizing information in logistics?
a. greater knowledge and visibility across the supply chain
b. greater awareness of customer demand via point-of-sale data
c. better coordination of manufacturing, merchandising, and distribution through ERP tools
d. more streamlined order processing and reduced lead time
e. all of the above are benefits

Question 13

Which of the following statements about EDI is not true?
a. EDI can have high setup costs
b. EDI can result in increased inventory carrying costs
c. EDI can lead to increased billing accuracy
d. the Internet is likely a complement to, rather than substitute for, EDI

Question 14

____ provide effective ways to process organizational business data, to perform calculations, and to create documents.
a. enterprise resource planning systems
b. transaction processing systems
c. decision support systems
d. office automation systems

Question 15

The most relevant general software package for logisticians is ____.
a. spreadsheets
b. word processing
c. presentation packages
d. email

Question 16

____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object.
a. global positioning systems
b. geographic information systems
c. the National Security Agency
d. electronic data interchange

Question 17

Which of the following is not a logistics-related decision support system?
a. simulation
b. application-specific software
c. transportation management systems
d. electronic data interchange
e. all of the above are logistics-related decision support systems

Question 18

Warehouse management systems represent an example of what general type of information management system?
a. communication system
b. transaction processing system
c. decision support system
d. office automation system

Question 19

____ refers to the computer-to-computer transmission of business data in a structured format.
a. big data
b. enterprise resource planning systems
c. electronic data interchange
d. data mining

Question 20

____ help various stakeholders-employers, suppliers, customers-work together by interacting and sharing information in many different forms.
a. decision support systems
b. communication systems
c. office automation systems
d. transaction processing systems

Question 21

Approximately ____ percent of the world's population currently uses the Internet.
a. 45
b. 35
c. 25
d. 15

Question 22

Big data refers to large amounts of near-real-time data collected through a variety of sources such as sensors and smart phones, among others.

Question 23

The origins of contemporary ERP systems can be traced back to logistics and ____.
a. manufacturing
b. marketing
c. purchasing
d. finance

Question 24

A transaction processing system helps people work together by interacting and sharing information in many different forms.

Question 25

Which of the following is not a type of benefits that comes from electronic procurement?
a. transactional benefits
b. management information benefits
c. compliance benefits
d. production benefits
e. all of the above are benefits

Question 26

The effective and efficient use of information allows organizations to either reduce costs or improve customer satisfaction.

Question 27

In a reverse auction, ____.
a. multiple sellers invite bids from multiple buyers
b. one buyer invites bids from one seller
c. one buyer invites bids from multiple sellers
d. multiple sellers invite bids from one buyer

Question 28

Which of the following statements is false?
a. orders associated with online retailing tend to be for smaller quantities than in-store retailing
b. online retailing is characterized by open-case, rather than full-case, picking
c. online retailers are challenged by last-mile considerations
d. online retailing and in-store retailing experience similar rates of product return

Question 29

Efficient data mining is dependent upon ____.
a. good forecasting tools
b. top management commitment
c. high-speed technology
d. data warehouses

Question 30

The return rates for online purchases is approximately ____ percent
a. 20
b. 25
c. 30
d. 35
e. none of the above

Question 31

"Data" and "information" are synonymous terms.

Question 32

____ create and maintain consistent data processing methods and an integrated database across multiple business functions.
a. logistics information systems
b. enterprise systems
c. decision support systems
d. transaction processing systems

Question 33

All of the following are potential costs associated with ERP implementation, except:
a. employee training
b. system testing
c. data conversion
d. upgraded computer hardware
e. all of the above are costs

Question 34

Which of the following is not a potential benefit of transportation management systems?
a. fewer stockouts
b. reduced fuel consumption
c. decreased empty vehicle miles
d. reduced transportation expenditures
e. all of the above are benefits

Question 35

____ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.
a. fuzzy logic
b. factor analysis
c. data mining
d. linear regression

Question 36

What has emerged as the most popular application of on-demand logistics software (cloud computing)?
a. warehouse management systems
b. transportation management systems
c. inventory optimization
d. collaborative forecasting

Question 37

Office automation systems provide effective ways to process personal and organizational business data, to perform calculations, and to create documents.

Question 38

The worldwide public cloud services market grew by approximately ____ percent between 2011 and 2012?
a. 20
b. 15
c. 10
d. 5

Question 39

Which of the following statement about ERP is false?
a. In recent years, ERP vendors have begun to provide high-quality application-specific logistic capabilities
b. ERP implementation costs can easily reach tens of millions of dollars
c. ERP's origins can be traced back to finance and manufacturing
d. ERP glitches often have a logistical component to them
e. all of the above are true

Question 40

____ has been identified as the biggest information technology challenge that companies face today.
a. software viruses
b. information security
c. the cost of technology
d. employee resistance

Question 41

Radio-frequency identification is the most popular automatic identification system currently in use.

Question 42

The attractiveness of ERP systems comes from their potential for lower costs as well as increased productivity and customer satisfaction.

Question 43

Internal sources of logistics information are not always as plentiful as might be desired.

Question 44

The origin of ERP systems can be traced back to finance and manufacturing.

Question 45

One benefit to transportation management systems is fewer stockouts.

Question 46

The idea behind point-of-sale systems is to provide data to guide and enhance managerial decision making.

Question 47

The primary advantage of simulation is that it enables a firm to test the feasibility of proposed changes at relatively little expense.

Question 48

Wal-Mart and its vendors make extensive use of data mining to improve supply chain efficiency and effectiveness.

Question 49

Global positioning implementations often pay for themselves within six months.

Question 50

A logistics information system begins with a logistics manager requesting information and ends with the manager receiving regular and customized reports.

Question 51

The Internet has emerged as the measuring stick for logistics information technology during the first decade of the 21^st century.

Question 52

Correlation analysis uses sophisticated quantitative techniques to find "hidden" patterns in large volumes of data.

Question 53

Transportation companies that have implemented global positioning systems have reported increased worker productivity, reduced operating costs, and improved customer relations.

Question 54

EDI is an example of a logistics-related transaction processing system.

Question 55

EDI is no longer an important logistics technology in the 21^st century.

Question 56

There are suggestions that consultant fees for ERP implementations may be three times as costly as the software itself.

Question 57

"Timely" information can refer to its nature and quality.

Question 58

One prominent drawback to radio-frequency identification (RFID) involves privacy concerns.

Question 59

Activities that can be controlled by a warehouse management system include inventory management, determination of storage locations, and order shipping.

Question 60

Application-specific software is a type of decision support system.

Question 61

There are few logistical similarities between online and in-store retailing.

Question 62

If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger's firm and his suppliers of components? Discuss.

Question 63

Software viruses are viewed as the most important information technology issue that companies face today.

Question 64

Electronic procurement uses the Internet to make it easier, faster, and less expensive for an organization to purchase goods and services.

Question 65

In a reverse auction, one seller invites bids from multiple buyers.

Question 66

Cloud-based software allows for a great deal of customization.

Question 67

If the JIT system is adopted, are there safety stocks of any item that should be maintained? If so, which ones, and how much?

Question 68

The worldwide public market for cloud computing grew nearly 20 percent between 2011 and 2012.

Question 69

What would be the total annual cost of maintaining the components inventory under the JIT system (assuming no safety stocks)?

Question 70

The smaller order quantities occasioned by online retailing tend to favor transport companies with extensive delivery networks and expertise in parcel shipments.

Question 71

Information technology should be regarded as a tool to help managers address organizational problems.

Question 72

The Internet is the primary transaction medium for cloud-based software.

Question 73

A general rule of thumb is that the actual time to implement an ERP system may range from 1 ½ to 2 times longer than the time period specified by the ERP vendor.

Question 74

In recent years, ERP vendors have begun to provide high-quality application-specific logistical capabilities.

Question 75

One reason for the popularity of on-demand software is that is pay-per use formula allows customers to avoid high capital investment costs.

Question 76

The return rates associated with e-commerce are quite similar to those associated with other kinds of retailing.

Question 77

People-related factors such as employee resistance have been identified as a major cause of information technology implementation failure.

Question 78

Should Ballenger take into account any other costs or benefits from the JIT system? If so, what are they?

Question 79

About 25 percent of the world's population currently uses the Internet.

Question 80

What is the total annual cost of maintaining the components inventory under the present system?
Current system
Current system (continued)
Total inventory maintenance cost per year = $1,151,522
Using JIT