401. The correct answer is A.
Before determining a strategy for greater collaboration, the firm must know what it can and cannot do with its current system. Then the firm can set a strategy for where it wants to be and test the strategy's validity.
The first step in setting strategy for moving toward greater collaboration in regard to the firm's enterprise resources planning (ERP) system is to do which of the following?
A. Analyze the current ERP system and understand its limitations.
B. Customize the ERP system to allow the needed functionality.
C. Create a conceptual and simulation model.
D. Design a business architecture plan and an implementation plan.
402. The correct answer is C.
While any of the listed databases could be used to allow sharing of data with the extended supply chain, groupware databases are specifically designed to regulate access to data and track updates without compromising the primary database.
Which of the following types of databases would be best for allowing several suppliers access to a limited set of the company's data without disclosing other proprietary data?
A. Relational database
B. Data warehouse
C. Groupware database
D. Datamart
403. The correct answer is B.
Open, Web-based, and distributed standards are replacing older closed systems because they are cheaper to develop, integrate, and maintain.
The competitive market encourages application developers to use standards. In comparison to older standards, these standards are all of the following except
A. Web-based.
B. closed.
C. cheaper to develop.
D. distributed.
404. The correct answer is A.
Because the natural rubber is becoming more rare, the tire producer should consider some form of alliance or better for this partner. The tire recycler is not offering a unique value-added service but a commodity service, so these transactions should be kept at arm's length.
A tire producer partners with a natural rubber producer whose products are becoming subject to more and more demand even as the product becomes more rare. They also get old tires from a tire recycler. Which of the following collaborative intensities would be appropriate for these partners?
A. Shared processes and partnership level or higher for the natural rubber producer and arm's length for the tire recycler
B. Backward integration for the natural rubber producer and transactional and information collaboration or higher for the tire recycler
C. Linked competitive vision and strategic alliance or higher for the natural rubber producer and shared processes and partnership for the tire recycler
D. Arm's length relationship for the natural rubber producer and transactional and no relationship with the tire recycler
405. The correct answer is A.
When B2B marketplaces are used to create ad hoc relationships that can differ from transaction to transaction to form the chain best suited for the need, it is described as a chaotic rather than static network. These networks are quickly adaptable.
Which of the following describes a chaotic network?
A. Use of B2B marketplaces to create a new virtual supply chain for each specific need
B. Use of B2B marketplaces in a portal that combines content, transactions, and services for all-in-one functionality
C. Use of B2B marketplaces to provide pseudocertification to prospective members so that a wide audience can participate without too much risk
D. Use of B2B marketplaces to link each member of a supply chain by a hub in which the members are all spokes
406. The correct answer is A.
Managers can set rules such as that a particular plant prefers to make a particular type of good even when others have the capacity.
Within an advance planning and scheduling (APS) system, which of the following is true?
A. Managers can set a rule that all manufacturing of Item A occurs at Plant B even if other plants have the capacity.
B. The bulk of the APS functions exist at the operational level.
C. At the strategic level, an APS system automatically determines the weighting of tradeoffs such as cost versus quality.
D. Materials, production, and distribution planning modules work sequentially to provide the master planner with plans after a single pass.
407. The correct answer is D.
The coefficient of deviation is the standard deviation divided by the mean, where the standard deviation measures the absolute variability of demand for the item and the mean is the average of the values.
For orders placed at the distribution centers by retail stores, which of the following measures the variation of orders relative to the average demand level for the orders?
A. Aggregate deviation
B. Standard deviation
C. Mean
D. Coefficient of variation
408. The correct answer is A.
Companies have been proven to be better off spending their resources getting their hardware, databases, operating systems, and other architecture up to a standard and then using the ERP. Without improving the company process and aligning them with best practices and ERP applications, they may end up spending their resources in customizing the ERP system, which has many hidden costs, up to seven to eight times the price of the software itself.
For an enterprise resources planning (ERP) initiative, which of the following expenditures or difficulties should be avoided, assuming the company can generate the capital to perform them all?
A. Customize the ERP system to match the company's best practices.
B. Change company processes to align with the ERP best practices.
C. Upgrade databases and operating systems to make them homogenous.
D. Upgrade hardware until the architecture is homogeneous.
409. The correct answer is C.
While the nucleus firm may be a manufacturer or a retailer, it is defined as the firm that has the most power or brand equity in a relationship, and this firm must take the initiative to move the extended supply chain network to a higher stage of supply chain development.
Which of the following must champion the relationships to be formed across an extended supply chain?
A. Retailer
B. Manufacturer
C. Nucleus firm
D. Cross-enterprise technology team
410. The correct answer is A.
The tactical level is where detailed production plans, sales plans, and other types of functional plans are set to support the organization's strategic plan.
Which of the following information levels is the most likely place in which specific production, funding, capacity, and staffing levels would be decided?
A. Tactical
B. Strategic
C. Operational planning
D. Operational execution
411. The correct answer is B.
Technology auditors should be familiar both with the technology being audited and with the capabilities of the company and the supply chain being audited.
All of the following are true of technology audits except
A. Technology audits exist to limit the risk of technology adoption.
B. Technology auditors must be familiar with the technologies being audited but need no specific industry knowledge.
C. Technology audits help to keep the company ahead of the technology curve.
D. Technology audits are best performed by independent outside parties.
412. The correct answer is D.
RosettaNet sometimes deters smaller businesses from using it because of its expense and complexity.
Which of the following is true of RosettaNet?
A. RosettaNet is a proprietary set of standards, and some businesses avoid it because they are competitors with the owners.
B. RosettaNet works best when paired with LINUX, the open operating system standard.
C. RosettaNet is a horizontal exchange that works to increase adoption of standards across industries.
D. RosettaNet can be complex and expensive to implement.
413. The correct answer is C.
Some large firms feel that the pooling of efforts that is integral to consortium-based exchanges dilutes their industry influence, and they instead form private exchanges to maintain their independence.
Which of the following is a reason some large firms resist using a consortium-based exchange and instead form their own private exchanges?
A. Private exchanges generate a larger supplier base than a consortium.
B. Consortia entail greater setup expense than a private exchange.
C. A consortium's pooling efforts reduce the firm's power in the industry.
D. Group purchases that consolidate buying power are available only on private exchanges.
414. The correct answer is C.
Most ERP systems currently in use generate and send flat files, which are proprietary files in the native language of the application that created them.
Most traditional ERP systems send data in which of the following formats?
A. WML
B. ANSI X12 for EDI
C. Flat files
D. XML
415. The correct answer is D.
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 of the scenarios listed 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.
Which of the following would be the least likely reason to implement RFID at a company?
A. Decreasing already low error rates on baggage handling for an airline where each error has a high cost
B. Automated service scheduling for a fleet of cars with details stored dynamically on the tag
C. Automated door openings and closings at a steam energy plant to save on energy costs
D. Increasing internal inventory accuracy in a make-to-order, low stock environment
416. The correct answer is D.
Deep functional expertise is considered the primary employee skill set at Stages 1 and 2 of supply chain development.
Of the following employee skill sets, which is considered the primary skill set for departmental leaders prior to reaching Stage 3 of supply chain development?
A. Knowledge of other functional areas
B. Conceptual model building skills
C. Ability to come to consensus
D. Deep functional expertise
417. The correct answer is B.
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 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.
In an advanced supply chain, which of the following would be the best data to send to a sheet metal producer from its various buyers?
A. Sheets of steel and plates of glass needed for metal-edged window construction for the month
B. Sheets of steel required for metal door construction company for the month
C. Real-time point-of-sale (POS) data and profit margins for every buyer
D. Number of tin cans needed for canned vegetable production for the month
418. The correct answer is B.
APS is often grouped within SCM as its highest level planning system, coordinating the work of multiple plants for overall optimization.
Which of the following is often included in supply chain management (SCM) software as the highest level analytical system that often displaces or replaces current ERP scheduling functions?
A. Supply chain planning and design
B. Advance planning and scheduling (APS)
C. Product life cycle management
D. Collaborative planning, forecasting, and replenishment (CPFR)
419. The correct answer is D.
Choosing the right business model at the strategic level will have a cascading effect on all other choices made for the business. Therefore strategic level systems have the highest ROI.
Which of the following will generate the greatest return on investment (ROI) for a comprehensive supply chain management system?
A. Imposing tactical limits on future decisions
B. Performing each of a massive number of transactions more efficiently
C. Optimizing operational planning processes to match supply with demand on a daily basis
D. Determining the right business model
420. The correct answer is C.
Most consortia-based marketplaces serve an industry vertical, and the ownership consortium makes up the primary players in the market. Unlike private marketplaces, consortia-based marketplaces allow members to trade and collaborate privately in a secure environment without necessarily involving the members of the consortium.
A marketplace for the chemical industry requires membership but is semipublic because it allows all members to trade with one another and enables collaboration and data sharing without needing to include the owners of the site. Which of the following is this type of site?
A. Private horizontal marketplace
B. Private vertical marketplace
C. Consortia-based vertical marketplace
D. Consortia-based horizontal marketplace
421. The correct answer is C.
An integrated network or trading community network involves the combination of several horizontal portals and an industry vertical portal to pool the powers of each portal into a larger and more powerful trading community.
Which of the following describes when multiple portals are combined in one site so that multiple buyer bases can interact with multiple seller bases?
A. Trading exchanges or online marketplaces
B. Horizontal portals
C. Integrated trading community networks
D. Vertical portals
422. The correct answer is A.
A LAN is a common computer networking method.
A local area network (LAN) exists at which of the following IT infrastructure levels?
A. Operating system (O/S) and computer networking level
B. Database level
C. Presentation level
D. Application level
423. The correct answer is B.
Cross-functional and cross-business teams must be formed to involve all parties in the other steps.
Which of the following is the next step in an intraenterprise strategy development process after the first step of determining goals and the desired end state of the supply chain?
A. Design in change management and training for all parties and set performance metrics.
B. Create cross-functional and cross-business teams to guide the transformation.
C. Semantically organize the supply chain's operational processes and IT's mission.
D. Create a conceptual model that will explain the process to all involved parties.
424. The correct answer is D.
Getting access to pertinent data from suppliers and customers is a primary goal of information collection in advanced supply chains. The other answers are not possible or desired.
Which of the following is a primary goal of companies at higher stages of development regarding the acquisition and use of data?
A. Putting all data collected to use
B. Making forecasting become completely accurate
C. Getting analytical systems to make decisions for management
D. Getting access to data outside the company
425.
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