Question 1

Each level of management has its own _____.
A)data needs
B)decision making responsibilities
C)time horizons
D)All of the above

Accepted Answer

Each level of management has its own unique data needs, decision making responsibilities, and time horizons. Top-level managers typically have a broader focus and longer-term perspective, requiring data related to overall company performance and strategic planning. Middle-level managers focus on departmental performance and may need more detailed data on specific projects or products. Lower-level managers are more operational and focused on daily tasks, requiring more immediate data and decision making. Therefore, all of the above are important distinctions between different levels of management.

Question 2

Strategic level decisions are visionary and future-oriented.What types of data are specifically required for these decisions?
A)Real-time transactional and POS data.
B)Internal data sales about inventory levels,orders,and customer support.
C)External and internal data that has a one to three year time horizon.
D)External data about the economy,competitors,and business trends.

Accepted Answer

D

Question 3

POM departments may keep __________,which is extra inventory in case of unexpected events,such as spikes in demand or delivery delays.
A)buffer stock
B)safety stock
C)shortage stock
D)a and b

Accepted Answer

Both buffer stock and safety stock are types of extra inventory kept by POM departments as a precaution against unexpected events. Therefore, the best choice is both A and B. Choice C, shortage stock, is not a valid term in POM and is not a type of extra inventory.

Question 4

In the August 2008 benchmark study,"Customer Analytics: Segmentation Beyond Demographics," respondents stated that their top data-related challenge was__________.
A)poor data quality
B)inability to collect data needed to calculate key performance metrics
C)information overload
D)encrypting data for security

Accepted Answer

According to the August 2008 benchmark study, "Customer Analytics: Segmentation Beyond Demographics," respondents identified poor data quality as their top data-related challenge.

Question 5

A company's payroll systems prepare and process the payroll data periodically,such as at the end of the work week.This type of processing is known as __________.
A)batch
B)real-time
C)online
D)data warehousing

Accepted Answer

Batch processing involves collecting and processing large amounts of data periodically, which is exactly what a payroll system does at the end of the work week. Real-time processing and online processing involve immediate or near-immediate processing of data, which is not typically the case with payroll processing. Data warehousing involves storing and managing large amounts of data for future analysis, which is not directly related to the processing of payroll data.

Question 6

The data requirements of operational-level units are __________ because they depend heavily on standard operating procedures.
A)extensive,unique,and change frequently
B)extensive,routine,and rarely change
C)limited and customized
D)external,unstructured,and constant

Accepted Answer

Operational-level units rely heavily on standard operating procedures, which means their data requirements are typically routine and do not change frequently. They need data that is consistent and structured to support their day-to-day activities. Therefore, option B is the best choice.

Question 7

What types of data are specifically required for decisions made at the managerial or administrative level?
A)Real-time transactional and POS data.
B)Internal data sales about inventory levels,orders,and customer support.
C)External and internal data that has a one to three year time horizon.
D)External data about the economy,competitors,and business trends.

Accepted Answer

Managerial and administrative decisions are usually long-term and strategic in nature. Therefore, the data required for these decisions should have a one to three year time horizon. This includes both internal data such as sales, inventory levels, and customer support, as well as external data such as economic trends, competitors, and business trends. Real-time transactional and POS data are more useful for operational decisions at the lower levels of the organization.

Question 8

__________ deals with ordering,purchasing,receiving,and shipping activities.
A)Order fulfillment management
B)Production management
C)Logistics management
D)Vendor inventory management

Accepted Answer

The answer of __________ deals with ordering,purchasing,receiving,and shipping activities.
A)Order fulfillment...

Question 9

Which is not one of the key characteristics of a TPS?
A)Large volumes of data are processed
B)Involves extensive computation complexity
C)Data sources are mostly internal,and the output is intended mainly for internal users and trading partners
D)Involves a high level of detailed raw data

Accepted Answer

TPS typically involves routine and repetitive transactions that require minimal computation complexity. The other characteristics listed are typically present in a TPS.

Question 10

First Choice Ski increased the number of Web site sales by 266%.and improved business performance after implementing __________,which enabled them to respond quickly to visitors' clickstream behavior.
A)OLTP
B)order processing
C)POM systems
D)Web analytics

Accepted Answer

The company's improved performance can be attributed to their implementation of Web analytics, which allowed them to track and analyze visitors' clickstream behavior and make changes to the site accordingly. OLTP, order processing, and POM systems may be important for e-commerce businesses, but they are not directly related to improving Web site sales or responding to visitors' behavior.

Question 11

Toyota implemented __________ inventory management to minimize holding costs by not taking possession of inventory until it is needed in the production process.
A)economic order quantity (EOQ)
B)just-in-time (JIT)
C)quality control (QC)
D)total quality management (TQM)

Accepted Answer

The answer of Toyota implemented __________ inventory management to minimize...

Question 12

Why did the largest Scandinavian food retailer group,Axfood AB,invest 200 million SEK (20.4 million Euros or US$25.6 million)in an IT platform?
A)To develop multi-cultural e-commerce capabilities
B)To fully integrate its diverse IT infrastructure to coordinate and connect its operations
C)To implement advanced technologies,including tags,RFID,and social media
D)To develop order fulfillment and logistics capabilities

Accepted Answer

Axfood AB invested in the IT platform to fully integrate its diverse IT infrastructure to coordinate and connect its operations.

Question 13

__________ are planning and control systems that capture and record all of the company's data from operations,and perform the routine transactions needed to conduct business on an ongoing day-to-day basis.
A)Operational information systems
B)Strategic information systems
C)Databases
D)Inter-organizational systems

Accepted Answer

Operational information systems are specifically designed to capture and process data related to daily business operations. They perform routine transactions necessary for conducting business and ensure accuracy of data. On the other hand, strategic information systems are focused on providing long-term strategic benefits to the organization, whereas databases are simply data storage and retrieval systems, and inter-organizational systems are used for exchanging information between different organizations.

Question 14

Why are the three levels of management and decision making often modeled as a pyramid? .
A)To show the importance of senior management decision making on the organization.
B)To show the importance of the decisions made at each management level.
C)To show the hierarchy of the management levels.
D)All of the above.

Accepted Answer

The pyramid shape represents a hierarchical structure, and in the case of management levels, it represents the hierarchy of authority and decision-making power within an organization. The top of the pyramid represents the highest level of management (senior or executive management) with the greatest decision-making power, and the bottom of the pyramid represents the lower levels of management with less decision-making power. Therefore, the pyramid shape is used to show the hierarchy of the management levels.

Question 15

At the __________ level,decisions are made to control the day-to-day activities.
A)operational
B)strategic
C)administrative
D)senior

Accepted Answer

Operational level decisions are made to control day-to-day activities. Strategic decisions are made at the top level to shape the overall direction of the organization, while administrative decisions are made to manage resources and coordinate activities between different departments. Senior level decisions are also made at the top level but specifically involve high-level strategic planning and decision-making.

Question 16

Characteristics of projects that make them different from operations include each of the following except:
A)are unique undertakings
B)have a high degree of certainty with respect to costs and completion times
C)may compete and conflict with other business activities
D)involve a high risk of delay and failure,but has high profit potential or benefit

Accepted Answer

Projects are not certain and have a higher risk of delay and failure compared to operations which are routine and repetitive in nature. Projects are also unique and may compete or conflict with other business activities. However, having a high degree of certainty with respect to costs and completion times is not a characteristic of projects.

Question 17

A company's inventory control system seeks to minimize each of the following cost categories except:
A)cost of labor
B)cost of holding inventory
C)cost of ordering and shipping
D)cost of inventory shortage

Accepted Answer

The inventory control system aims to minimize the cost of holding inventory, the cost of ordering and shipping, and the cost of inventory shortage. However, it is not focused on minimizing the cost of labor, as this cost is not directly related to inventory control.

Question 18

Data integrity with real-time systems involves __________,which means that if all steps in a transaction are not completed,then the entire transaction is cancelled.
A)atomicity
B)consistency
C)isolation
D)durability

Accepted Answer

Atomicity refers to the concept that all steps in a transaction must be completed, or else the entire transaction is cancelled. This is important for maintaining data integrity in real-time systems. Consistency, isolation, and durability are also important aspects of data integrity, but they do not directly address the issue of incomplete transactions.

Question 19

Generally speaking,why do organizations automate TPS data entry as much as possible?
A)To reduce labor costs
B)To be able to capture online data
C)For competitive advantage
D)To minimize errors and data entry time

Accepted Answer

Organizations automate TPS data entry to minimize errors and data entry time. By eliminating manual data entry, which is prone to errors, organizations can ensure that the data entered into the system is accurate and consistent. Automation also reduces the time and effort required for data entry, allowing employees to focus on other important tasks. While reducing labor costs and capturing online data are also potential benefits, the primary reason for automating TPS data entry is to improve data quality and efficiency.

Question 20

In__________,data can be accessed directly from operational databases and all transactions are processed as soon as they occur.
A)batch processing
B)online analytic processing (OLAP)
C)online transaction processing (OLTP)
D)POS processing

Accepted Answer

The description matches online transaction processing (OLTP), where data is accessed directly from operational databases and transactions are processed as soon as they occur. Batch processing (A) involves collecting data over a period of time and processing it in one batch, while online analytic processing (OLAP) (B) is used for complex data analysis tasks. POS processing (D) is a specific type of OLTP used in retail environments.

Quiz 9: Operational Planning and Control Systems

Each level of management has its own _____.

Strategic level decisions are visionary and future-oriented.What types of data are specifically required for these decisions?

POM departments may keep __________,which is extra inventory in case of unexpected events,such as spikes in demand or delivery delays.

In the August 2008 benchmark study,"Customer Analytics: Segmentation Beyond Demographics," respondents stated that their top data-related challenge was__________.

A company's payroll systems prepare and process the payroll data periodically,such as at the end of the work week.This type of processing is known as __________.

The data requirements of operational-level units are __________ because they depend heavily on standard operating procedures.

What types of data are specifically required for decisions made at the managerial or administrative level?

__________ deals with ordering,purchasing,receiving,and shipping activities.

Which is not one of the key characteristics of a TPS?

First Choice Ski increased the number of Web site sales by 266%.and improved business performance after implementing __________,which enabled them to respond quickly to visitors' clickstream behavior.

Toyota implemented __________ inventory management to minimize holding costs by not taking possession of inventory until it is needed in the production process.

Why did the largest Scandinavian food retailer group,Axfood AB,invest 200 million SEK (20.4 million Euros or US$25.6 million) in an IT platform?

__________ are planning and control systems that capture and record all of the company's data from operations,and perform the routine transactions needed to conduct business on an ongoing day-to-day basis.

Why are the three levels of management and decision making often modeled as a pyramid? .

At the __________ level,decisions are made to control the day-to-day activities.

Characteristics of projects that make them different from operations include each of the following except:

A company's inventory control system seeks to minimize each of the following cost categories except:

Data integrity with real-time systems involves __________,which means that if all steps in a transaction are not completed,then the entire transaction is cancelled.

Generally speaking,why do organizations automate TPS data entry as much as possible?

In__________,data can be accessed directly from operational databases and all transactions are processed as soon as they occur.