Supply Chain Management, 5e (Chopra/Meindl) Chapter 17 Information Technology in a Supply Supply Chain
17.1 True/False Questions 1) Information is crucial to the performance of a supp ly chain because it provides the basis upon which supply chain managers mae decisions. !nswer" T#$% &iff" 1 Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Information Technology Technology *earning +utcome" (ompare common approaches to supply chain design ,) Information is the supply chain driver that serves as the glue allowing the other three drivers to wor together to create an integrated- coordinated supply chain. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Information Technology Technology *earning +utcome" (ompare common approaches to supply chain design ) Information maes the supply chain visible to a manager so that he can mae decisions to improve the supply chains performance. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Information Technology Technology *earning +utcome" (ompare common approaches to supply chain design 0) Information must be 1 percent correct in order to mae good decisions. dec isions. !nswer" F!*'% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 2) To mae good decisions- a manager needs to have accurate information regardless of how long it taes to ac3uire it. !nswer" F!*'% &iff" Topic" 17.1 The #ole of IT in a 'upply (hain *earning +utcome" (ompare common approaches to supply chain design
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8) +ften companies will have large amounts of data that are not helpful with decision maing. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain *earning +utcome" (ompare common approaches to supply chain design 7) The driver of IT in the supply chain has increasingly been the enterprise software developed to enable processes both within and across companies. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design 9) The unsuccessful categories of software will be those focused on the supply chain macro processes. !nswer" F!*'% &iff" 1 Topic" 17.1 The #ole of IT in a 'upply (hain *earning +utcome" (ompare common approaches to supply chain design :) This broadening of scope across which companies mae decisions emphasi;es the importance of including processes all along the supply ch ain when maing decisions. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain *earning +utcome" (ompare common approaches to supply chain design 1) To increase the supply chain surplus
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1,) Firms that wor well with implementation partners and build up large groups of customers trained on their solutions have built a highly defensible position. !nswer" T#$% &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 1) The goal of the (#= macro process is to negotiate an effective contract that establishes parameters for a supplier in a way that best meets enterprise needs. !nswer" F!*'% &iff" Topic" 17. (ustomer #elationship =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 10) >eaness in the (#= process results in demand being lost and a poor customer e?perience because orders are not processed and e?ecuted effectively. !nswer" T#$% &iff" 1 Topic" 17. (ustomer #elationship =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 12) (#= processes are crucial to the supply chain because of the lac of interaction between an enterprise and its customers. !nswer" F!*'% &iff" , Topic" 17. (ustomer #elationship =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 18) >hen forecasting demand- I'(= interaction with '#= is essential as the '#= applications have the most data and insight on customer behavior. !nswer" F!*'% &iff" 1 Topic" 17.0 Internal 'upply (hain =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design
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17) The I'(= processes should have strong integration with the '#= macro process- because supply planning- fulfillment- and field service are all depende nt on suppliers and therefore the '#= processes. !nswer" T#$% &iff" , Topic" 17.0 Internal 'upply (hain =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 19) %very industry has the same ey success factors. !nswer" F!*'% &iff" 1 Topic" 17.: 'upply (hain IT in 6ractice *earning +utcome" (ompare common approaches to supply chain design 1:) 'ome of the worst IT disasters are due to the fact that companies try to implement IT systems in a wide variety of processes at the same time. !nswer" T#$% &iff" 1 Topic" 17.: 'upply (hain IT in 6ractice !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design ,) (ompanies should use IT systems to mae decisions- because the software available today can mae many supply chain decisions for management. !nswer" F!*'% &iff" 1 Topic" 17.: 'upply (hain IT in 6ractice !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design
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17., =ultiple (hoice Questions 1) Information technology
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0) >hich of the following is not a characteristic information must have to be useful when maing supply chain decisions@ !) Information must be accurate. ) Information must be accessible in a timely manner. () Information must be interesting. &) Information must be of the right ind. !nswer" ( &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design 2) To be accurate- information must !) give the true picture of the state of the supply chain. ) be 1 percent correct. () paint a picture of reality that is at least directionally correct. &) ! and ( only !nswer" & &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design 8) To be accessible in a timely manner- information must be !) out of date. ) current. () easily accessible. &) and ( only !nswer" & &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design 7) To be of the right ind- information needs to be !) useful. ) irrelevant. () meaningless. &) and ( only !nswer" ! &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" $se of Information Technology *earning +utcome" (ompare common approaches to supply chain design
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9) Information is a ey ingredient !) at each stage of the supply chain. ) within each phase of supply chain decision maing. () only at each stage of the supply chain. &) ! and only !nswer" & &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design :) The successful categories of software in the evolution taing place in enterprise software will be !) those focused on the supply chain macro processes. ) those not focused on the supply chain macro processes. () those focused on basic functions. &) both ! and ( !nswer" &iff" , Topic" 17., The 'upply (hain IT Framewor !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design 1) The emergence of supply chain management has broadened the scope across which companies mae decisions to !) the supplier. ) the enterprise. () the entire supply chain. &) the customer. !nswer" ( &iff" 1 Topic" 17., The 'upply (hain IT Framewor *earning +utcome" (ompare common approaches to supply chain design 11) >hich of the following is not one of the supply chain macro processes@ !) (ustomer #elationship =anagement <(#=) ) Internal 'upply (hain =anagement
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1,) 6rocesses that focus on downstream interactions between the enterprise and its customers are included in !) (ustomer #elationship =anagement <(#=). ) Internal 'upply (hain =anagement
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18) >hich of the following is not a factor determining the success of software firms focused on a macro process@ !) Functional performance ) (olor and images on woring screens () Integration with other macro processes &) 'trength of the software firms ecosystem !nswer" &iff" 1 Topic" 17., The 'upply (hain IT Framewor *earning +utcome" (ompare common approaches to supply chain design 17) The ability to integrate is important to a customer because !) applications that are easy to integrate are generally easier to get implemented and produce value. ) applications that integrate across macro processes will be able to provide the benefits of maing decisions for the e?tended supply chain. () firms that do not have integrated solutions in all three macro processes have a competitive advantage. &) both ! and !nswer" & &iff" 1 Topic" 17., The 'upply (hain IT Framewor !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 19) The goal of the (#= macro process is to !) negotiate an effective contract that best meets enterprise needs. ) improve the design of products. () fulfill demand generated by I'(= processes. &) generate customer demand and facilitate transmission and tracing of orders. !nswer" & &iff" , Topic" 17. (ustomer #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design 1:) >eaness in the (#= process results in !) orders that are not processed and e?ecuted effectively. ) demand being lost. () a poor customer e?perience. &) all of the above !nswer" & &iff" 1 Topic" 17. (ustomer #elationship =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design
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,) >hich of the following is a ey process under (#=@ !) 'trategic 6lanning ) Fulfillment () Field 'ervice &) +rder =anagement !nswer" & &iff" , Topic" 17. (ustomer #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design ,1) >hich of the following is not a ey process under (#=@ !) =aret ) &emand 6lanning () +rder =anagement &) 'ell !nswer" &iff" Topic" 17. (ustomer #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design ,,) The (#= processes are crucial to the supply chain because !) all demand- and therefore revenue- ultimately arises from the customer. ) (#= processes hich of the following is a ey process under I'(=@ !) &esign (ollaboration ) Aegotiate () 'upply (ollaboration &) 'upply 6lanning !nswer" & &iff" Topic" 17.0 Internal 'upply (hain =anagement *earning +utcome" (ompare common approaches to supply chain design
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,0) >hich of the following is not a ey process under I'(=@ !) 'trategic 6lanning ) Fulfillment () 'upply (ollaboration &) &emand 6lanning !nswer" ( &iff" , Topic" 17.0 Internal 'upply (hain =anagement *earning +utcome" (ompare common approaches to supply chain design ,2) The I'(= processes should have strong integration with the '#= macro process because !) '#= applications have the most data and insight on customer behavior to be used in forecasting. ) supply planning- fulfillment- and field service are all dependent on suppliers. () order management must integrate closely with fulfillment and be an input for effective demand planning. &) ! and only !nswer" &iff" , Topic" 17.0 Internal 'upply (hain =anagement !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design ,8) >hich of the following is a maBor '#= process@ !) 'trategic 6lanning ) +rder =anagement () &esign (ollaboration &) 'upply 6lanning !nswer" ( &iff" , Topic" 17.2 'upplier #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design ,7) >hich of the following is not a maBor '#= process@ !) 'upply 6lanning ) uy () &esign (ollaboration &) 'ource !nswer" ! &iff" Topic" 17.2 'upplier #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design
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,9) 'elect an IT system that addresses the companys ey success factors because !) every industry has the same ey success factors. ) IT systems need to give a company an advantage in the areas most crucial to the success of the business. () these elements do not determine whether or not a company is going to be successful. &) ! and only !nswer" &iff" , Topic" 17.: 'upply (hain IT in 6ractice !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design ,:) Tae incremental steps and measure value because !) some of the worst IT disasters are due to the fact that companies try to implement IT systems in a wide variety of processes at the same time. ) companies should not tae a big picture perspective. () the big picture perspective should be implemented in digestible pieces. &) ! and ( only !nswer" & &iff" , Topic" 17.: 'upply (hain IT in 6ractice !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design ) !lign the level of sophistication with the need for sophistication because !) there is a trade4off between the ease of implementing a system and the systems level of comple?ity. ) erring on the less sophisticated side leaves the firm with a competitive weaness. () trying to be too sophisticated leads to a higher possibility of the entire system failing. &) all of the above !nswer" & &iff" , Topic" 17.: 'upply (hain IT in 6ractice !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design
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1) $se IT systems to support decision maing- not to mae decisions because !) the software available today can mae many supply chain decisions for management. ) companies need to maintain the amount of managerial effort they spend on supply c hain issues. () management needs to be able to mae adBustments in the supply chain because the competitive and customer landscape changes. &) and ( only !nswer" ( &iff" , Topic" 17.: 'upply (hain IT in 6ractice !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design ,) (ompanies need to thin about the future because !) trends in a companys industry regarding insignificant characteristics could become crucial in the future. ) managers need to e?plore how fle?ible the systems will be when changes are re3uired in the future. () IT systems often last for many more years than originally planned. &) all of the above !nswer" & &iff" , Topic" 17.: 'upply (hain IT in 6ractice !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design ) >hich of the following is not true concerning information supporting supply chain decisions@ !) Information must be accurate ) Information must be accessible in a timely fashion () Information must be of the right ind &) Information needs to be ept confidential !nswer" & &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design
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0) Information on product margins- prices- 3uality- delivery lead times- and so on- are all important in maing sourcing decisions. >hich supply chain driver is relevant here@ !) Transportation ) Facilities () 'ourcing &) Inventory !nswer" ( &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design 2) The te?tboo defines three macro supply c hain processes. >hich of the following is not one of these@ !) (ustomer relationship management ) %?ternal supply chain management () Internal supply chain management &) 'upplier relationship management !nswer" &iff" Topic" 17., The 'upply (hain IT Framewor *earning +utcome" (ompare common approaches to supply chain design 8) The ey processes under (#= are !) production. ) sales. () mareting. &) order management. !nswer" ! &iff" 1 Topic" 17. (ustomer #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design 7) Internal supply chain management is focused on operations internal to the enterprise. >hich of the following would not fall into this category@ !) 'upply planning ) (ustomer support () Fulfillment &) Field service !nswer" &iff" , Topic" 17.0 Internal 'upply (hain =anagement !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design
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9) Cey decisions include location and capacity planning of facilities. >hich process of the I('= would this describe@ !) &emand planning ) 'trategic planning () 'upply planning &) Fulfillment !nswer" &iff" , Topic" 17.0 Internal 'upply (hain =anagement !!('" !nalytic 'ills *earning +utcome" (ompare common approaches to supply chain design :) The DDDDDDDD process lins each order to a specific supply source and means of transportation. !) &emand planning ) Field service () 'upply planning &) Fulfillment !nswer" & &iff" 1 Topic" 17.0 Internal 'upply (hain =anagement *earning +utcome" (ompare common approaches to supply chain design 0) There are 0 maBor '#= processes. >hich of the following is not one of these@ !) 'ell ) Aegotiate () 'ource &) uy !nswer" ! &iff" , Topic" 17.2 'upplier #elationship =anagement *earning +utcome" (ompare common approaches to supply chain design 01) In the te?tboo- Eartner listed the top five %#6 software vendors in ,1. >hich of the following is not one of these@ !) '!6 ) =icrosoft () 6eoplesoft &) +racle !nswer" ( &iff" , Topic" 17.8 The Transaction =anagement Foundation *earning +utcome" (ompare common approaches to supply chain design
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0,) >hich of the following is not listed as an important trend that will affect IT in the supply chain@ !) Improved speed of hardware and software ) Erowth as software as a service () Increased availability of real4time data &) Increased use of mobile technology !nswer" ! &iff" Topic" 17.7 The Future of IT in the 'upply (hain *earning +utcome" (ompare common approaches to supply chain design 17. %ssay Questions 1) %?plain the role of information in the supply chain. !nswer" Information is crucial to the performance of a supply chain because it provides the basis upon which supply chain managers mae decisions. Information is the supply chain driver that serves as the glue allowing the other three drivers to wor together to create an integratedcoordinated supply chain. Information is crucial to supply chain performance because it provides the foundation on which supply chain processes e?ecute transactions and managers mae decisions. Therefore- information maes the supply chain visible to a manager. >ith this visibility- a manager can mae decisions to improve the supply chains performance. In many ways- information is the most important of the four supply chain drivers because without it- none of the other drivers can be used to deliver a high level of performance. Information is the ey to the success of a supply chain because it enables management to mae decisions over a broad scope that crosses both functions and companies. 'uccessful supply chain strategy results from viewing the supply chain as a who le- rather than looing only at the individual stages. y taing a global scope across the entire supply chain- a manager is able to craft strategies that tae into account all factors that affect the supply chain- rather than Bust those factors affecting a particular stage or function within the supply chain. Taing the entire chain into account ma?imi;es the profit of the total supp ly chain- which then leads to higher profits for each individual company within the supply chain. &iff" Topic" 17.1 The #ole of IT in a 'upply (hain !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design
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,) %?plain the role of information technology in the supply chain. !nswer" Information is crucial to the performance of a supply chain because it provides the basis upon which supply chain managers mae decisions. Information technology ithout information that gives the true picture of the state of the supply chain- it is very difficult to mae good decisions. That is not to say all information must be 1 percent correct but rather that the data available paint a picture of reality that is at least directionally correct. ,. Information must be accessible in a timely manner. +ften accurate information e?ists- but by the time it is available- it is either out of da te or if it is current- it is not in an accessible form. To mae good decisions- a manager needs to have up4to4date information that is easily accessible. . Information must be of the right kind . &ecision maers need information that they can use. +ften companies will have large amounts of data that are not helpful with decision maing. (ompanies must thin about what information should be recorded so that valuable resources are not wasted collecting meaningless data while important data g oes unrecorded. >hen managers have good information- they have supply chain visibility- enabling them to tae a global scope. >ith this global scope- they are able to mae the best decisions for the supply chain. Therefore- information is a ey to supply chain success. &iff" , Topic" 17.1 The #ole of IT in a 'upply (hain !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design
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0) &iscuss how the three supply chain macro processes interface in order to be successful. !nswer" The goal of the (#= macro process is to generate customer demand and facilitate transmission and tracing of orders. >eaness in this process results in demand being lost and a poor customer e?perience because orders are not processed and e?ecuted effectively. (#= processes are crucial to the supply chain as they cover a vast amount of interaction between an enterprise and its customers. The customer must be the starting point when trying to increase the supply chain surplus because all demand- and therefore revenue- ultimately arises from them. Thus- the (#= macro process is the starting point when improving supply chain performance. It is also important to note that (#= processes hen forecasting demand- interaction with (#= is essential- as the (#= applications are touching the customer and have the most data and insight on customer behavior. 'imilarly- the I'(= processes should have strong integration with the '#= macro process. 'upply planning- fulfillment- and field service are all dependent on suppliers and therefore the '#= processes. It is of little use for your factory to have the production capacity to meet demand if your supplier cannot supply the parts to mae your product. +rder management- which we discussed in (#=- must integrate closely with fulfillment and be an input for effective demand planning. !gain- good supply chain management re3uires that we integrate across the macro processes. 'ignificant improvement in supply chain performance can be achieved if '#= processes are well integrated with appropriate (#= and I'(= processes. For instance- wh en designing a product- incorporating input from customers is a natural way to improve the design. This would re3uire inputs from processes within (#=. 'ourcing- negotiating- buying- and collaborating primarily tie into I'(= as supplier inputs are needed to produce and e?ecute an optimal plan. ut even these segments have the need to interface with (#= processes such as order management. Integrating the three macro processes is crucial for improved supply chain performance. &iff" , Topic" 17., The 'upply (hain IT Framewor !!('" #eflective Thining 'ills *earning +utcome" (ompare common approaches to supply chain design
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