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Management Information Systems

Effy Oz

Chapter 3

Business Functions and Supply Chains - all with Video Answers

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Chapter Questions

Problem 1

What is a supply chain? What is the purpose of supply chain management systems?

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Problem 2

What is the purpose of cost accounting ISs?

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Problem 3

What is the relationship between CAD and CAM systems?

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Problem 4

What are the concerns in cash management, and how do cash management ISs help financialmanagers?

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Problem 5

What is time to market? How have ISs affected time to market?

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Problem 6

In brief, what is the purpose of customer rela tionship management systems?

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Problem 7

What are the typical components of ERP systems?

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Problem 8

Although technologically the full linking of the SCM systems of suppliers and buyers is feasible, many buyers are reluctant to do so. Why?

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Problem 9

Why do the ERP installation and testing of sys tems require that experts be involved? Why does the implementation of so many ERP systems face severe challenges or totally fail?

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Problem 10

What is EOQ? Which two problems do ISs that calculate EOQ help minimize?

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Problem 11

What is JIT? How do MRP and MRP II systems help achieve JIT?

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Problem 12

For the human resource managers of some orga nizations the entire web is a database of job can- didates. How so?

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Problem 13

What information technologies play a crucial rolein marketing?

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Problem 14

Many sales reps have no offices, yet they have access to huge resources, and their productivity is great. Explain how that is possible.

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Problem 15

What is RFID, and what role does it play in SCM?

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Problem 16

In the supply chain, shipping software helpsmainly in two ways. What are they?

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Problem 17

You established a small shop that manufactures a single product that you sell by mail. You purchase raw materials from several vendors and employ five full-time employees. For which business functions would you certainly use software?

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Problem 18

Which of the ISs you listed for Question 17 would you link to each other, and for what purpose?

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Problem 19

Why is it so important to have a quick response of online investment ISs? Give two examples of how such systems are critical.

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Problem 20

Some experts say that ISs have great potential in manufacturing. Explain why. (Hint: Consider business process reengineering.)

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Problem 21

Over the past decade, banks and investment firmshave offered many services that would be impossible without ISs. Describe three such ser vices and explain how IT makes them possible.

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Problem 22

ISs in both the manufacturing and service sectors often help to optimize. Give two examples of what they optimize.

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Problem 23

The web has significantly cut the cost of collecting data about shoppers and buyers. Explain how.

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Problem 24

Sellers of consumer products argue that targeted marketing serves not only them but also their consumers. How so?

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Problem 25

If you had to evaluate your own subordinates, would you prefer to evaluate them in written, open-ended form, or would you prefer to use employee evaluation software? Why?

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Problem 26

As an employee, would you prefer that your supervisor evaluate you with the aid of employee evaluation software or without it? Why?

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Problem 27

Try to remember the last time you gave someone your personal data, such as an ID number, email address, or a physical address. What was the reason for asking for the data? Do you know how the data will be used by the receiver?

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Problem 28

Some consumer advocates argue that organiza tions should pay every individual whenever theysell data about him or her to another organization. (They suggest 5 or 10 cents per sale.) Do you agree? Why?

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Problem 29

Examine the list of precautions suggested in "Ethical \& Societal Issues" for ensuring mini- mum invasion of privacy when businesses use personal data. Which steps can be taken with- out, or with minimal, added cost? Which steps would impose financial burdens on businesses? Why?

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Problem 30

RFID tags are increasingly embedded in almost every type of good, from soda six-packs to cloth ing items. Consumer advocates fear that the technology might cause massive violation of privacy. Describe at least two ways in which thiscan happen. What controls or limitations would you impose on RFID tags and use to minimize the fears of invasion of privacy?

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Problem 31

You are the CEO of a company that runs 2 plants, manufactures 12 different products, and sells them in 15 world regions. List all the items of information (totals, metrics, etc.) that you would like to know at least on a quarterly basis. State which information can or cannot be obtained through company operated ISs and why.

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Problem 32

Choose three distinct but related business func tions (e.g., inventory control, purchasing, payroll, accounting, etc.). Write a short paper describing how interfacing the information systems of these three functions can improve an organization's performance.

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Problem 33

Select a business process (possibly at a local firm) not mentioned in this chapter. Write an essay explaining how IS technology could make the process (1) more efficient and (2) more effective.

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Problem 34

Write a three-page essay titled "Factory of theFuture." Your factory will not require anybody in the manufacturing organization to enter any data into information systems. All the necessary information will come from customers at one end and suppliers at the other end. There will also be no need to type in any data for payments and collections. Explain how all this will work.

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Problem 35

Many companies use email to advertise their products. Your company is trying to sell a new product and is advised to use email. All the email addresses are of people who have agreed to receive promotional email about products such as the one you try to sell. The profit on each unit sold is $$\$ 200$$. Developing the attractive email message, use of 2,750,000 email addresses, and sending the message would cost $$\$ 25,000$$. Experi- ence shows that 5 percent of the initial recipients forward such messages to friends and family. Experience also shows that 2 percent of all reci pients actually click the web address included in the message and visit the commercial site. Of these visitors, 0.5 percent end up purchasing the advertised item.
Using Microsoft Excel or another spreadsheet, answer the following questions: (1) Would you generate a profit if you used this advertising opportunity? (2) Would you profit if you could email only $1,000,000$ people?
Develop a rationale for integrating social media into the email initiative. How can the integration of social media be used along with a direct emailcampaign? Research the strategy of various businesses as a model for your recommendations.

Sheryl Ezze
Sheryl Ezze
Numerade Educator

Problem 36

Form a team and design an IS for a small business that sells manufactured parts to other busi- nesses. The system must handle customer order processing, sales, salesperson commissions, billing, and accounts receivable. Prepare a report describing the system's different components and their points of interface. What files are necessary? How will the business use data in each file? If you have command of Microsoft Access, create the tables for the above objects, and populate each one with three to five records.

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Problem 37

Assume that you and your teammates are about to start a web-based business for sportinggoods. You wish to email information to poten tial customers. Determine the demographic characteristics of your target audience. Search the web for companies that sell consumer data that can serve you. Prepare a report about three such companies: their names, services, and prices (if available).

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