Question 1

Classical management contributors: which idea(s) are credited to Frederic W. Taylor within scientific management history?

Accepted Answer

Introduction / Context: Understanding who contributed which concepts helps anchor MIS within broader management history. Frederic W. Taylor is associated with scientific management, time-and-motion studies, and efficiency-focused principles, which influenced how modern information systems measure and improve work. Given Data / Assumptions: Taylor’s work centers on standardization, measurement, and managerial control. “Management functions” (planning, organizing, commanding, coordinating, controlling) are commonly attributed to Henri Fayol. We must choose which idea aligns with Taylor. Concept / Approach: Taylor emphasized management by facts, standard methods, and exceptions receiving managerial attention—often summarized as the “exception principle,” where routine cases follow standard procedures while deviations escalate. The formal taxonomy of management functions is linked to Fayol, not Taylor. Step-by-Step Solution: Differentiate Taylor’s scientific management from Fayol’s administrative theory. Associate exception-focused oversight with Taylor. Exclude “management functions” as Fayol’s domain. Select “the exception principle.” Verification / Alternative check: Management history surveys place Taylor’s legacy in standardization and exception handling; Fayol’s in articulating functions of management. Why Other Options Are Wrong: Management functions: Generally attributed to Fayol, not Taylor. Both/Neither: Both is inaccurate; neither ignores Taylor’s exception emphasis. None: Incorrect because Taylor is associated with the exception principle. Common Pitfalls: Conflating early theorists’ contributions; assuming all classical ideas came from one person. Final Answer: the exception principle

Question 2

In a receiving data subsystem (materials management), which master files and references are typically involved to validate receipts and update stock records?

Accepted Answer

Introduction / Context: The receiving function confirms that delivered goods match purchase orders and updates stock and payables. Accurate receiving feeds inventory accuracy, supplier performance tracking, and three-way matching for invoices. Recognizing the data files involved is key to designing proper controls. Given Data / Assumptions: Receiving compares shipments against purchase orders and vendor records. Inventory balances and item details must be updated. Purchasing data (PO lines, expected quantities) guides acceptance. Concept / Approach: Three core references participate: vendor (supplier identity, terms), purchasing (POs, lines, prices), and inventory (item master, stock levels, locations). The receiving transaction cross-validates all three, then posts quantity/lot updates and creates receiving vouchers to support accounts payable. Step-by-Step Solution: Match shipment to PO (purchasing file). Validate supplier details and terms (vendor file). Update item quantities and locations (inventory file). Therefore, all three files are involved. Verification / Alternative check: Standard ERP material management flows require vendor, PO, and item master participation during receipt posting. Why Other Options Are Wrong: Choosing only one or two ignores necessary cross-checks; “None” is false because these files are essential. Common Pitfalls: Updating inventory without referencing PO terms; skipping vendor validation, leading to mismatched invoices. Final Answer: All of the above

Question 3

In reporting and decision support, which type of report helps management answer what-if questions by projecting outcomes under assumed scenarios?

Accepted Answer

Introduction / Context: Decision makers frequently explore hypothetical situations: “What if demand rises 10%?”, “What if prices drop?”, “What if lead times double?” Reports that support such analyses are central to planning, budgeting, and risk management. Given Data / Assumptions: Management needs forward-looking insight, not only historical summaries. Reports should vary inputs and show projected outcomes. Terminology distinguishes types of reports by purpose. Concept / Approach: Predictive reports and related scenario analyses model outcomes based on assumed drivers (volumes, prices, costs, capacities). They enable what-if analysis by recalculating results when managers change parameters, often implemented via spreadsheets, planning systems, or BI tools with simulation features. Step-by-Step Solution: Identify that what-if implies future scenarios. Match to predictive or simulation-oriented reporting. Eliminate attributes (“relevant”) and governance methods (“management by exception”). Select “predictive reports.” Verification / Alternative check: FP&A practices use scenario and sensitivity analysis—classic predictive reporting—to support planning and budgeting. Why Other Options Are Wrong: Relevant: A quality, not a report type. Management by exception: A control principle, not a predictive technique. Control: A function, not a report category. None: Incorrect; predictive reports fit precisely. Common Pitfalls: Confusing variance (historical) analysis with predictive (forward-looking) analysis; forgetting to document assumptions behind scenarios. Final Answer: predictive reports

Question 4

Computing that appears to require human judgment: what is the general term for applications in which computers make decisions using intuition-like reasoning and intelligence?

Accepted Answer

Introduction / Context: Artificial Intelligence (AI) encompasses methods that enable machines to perform tasks commonly associated with human intelligence: reasoning, learning, problem solving, perception, and language understanding. The question asks for the broad umbrella term, distinct from specific subtypes. Given Data / Assumptions: Scope includes decision making, judgments, and reasoning. Terminology distinguishes umbrella (AI) from specific systems (e.g., expert systems). We want the most general label. Concept / Approach: AI is the general discipline. ES (expert systems) and KBS (knowledge-based systems) are subfields or historical approaches within AI that use encoded knowledge and inference. Modern AI also includes machine learning, deep learning, and probabilistic reasoning—all under the AI umbrella. Step-by-Step Solution: Identify that the stem asks for the broad, not narrow, term. Map expert systems and KBS as subsets of AI. Exclude distractors such as “Base-rule,” a malformed term. Select AI. Verification / Alternative check: Academic categorizations place ES and KBS within AI; contemporary AI extends well beyond rule-based reasoning. Why Other Options Are Wrong: ES: Subset of AI focused on rule-based expertise. KBS: Overlaps with ES; still a subset within AI. Base-rule: Not a standard term. None: Wrong because AI is correct. Common Pitfalls: Using ES or KBS as if they cover all intelligent computing; forgetting that learning-based approaches are also AI. Final Answer: AI

Question 5

Determining the appropriate spend for information and systems: which evaluation technique balances expected benefits against expected costs to guide investment decisions?

Accepted Answer

Introduction / Context: Organizations must justify investments in information systems by weighing total costs against anticipated benefits. A structured appraisal prevents overspending on low-value features and underinvesting in high-impact capabilities. Given Data / Assumptions: Costs include acquisition, implementation, training, support, and risk. Benefits include savings, revenue uplift, risk reduction, and compliance. We seek the method that considers both sides simultaneously. Concept / Approach: Cost-benefit analysis (CBA) compares total expected costs with total expected benefits over a defined horizon, often computing net present value (NPV), payback period, or internal rate of return (IRR). CBA supports transparent decisions and portfolio prioritization across competing projects. Step-by-Step Solution: List cost components and benefit drivers for the information initiative. Quantify and time-phase both sets where possible. Apply a CBA to compare and rank options. Select “cost-benefit analysis.” Verification / Alternative check: Capital budgeting practices require evaluating both costs and benefits; analyzing only one side yields biased decisions. Why Other Options Are Wrong: Cost analysis: Looks only at costs; incomplete. Benefit analysis: Looks only at benefits; incomplete. Any of the above: Incorrect because the balanced method is specifically CBA. None: Wrong since CBA is the standard approach. Common Pitfalls: Ignoring intangible benefits, overestimating savings, or neglecting change-management costs; not discounting future cash flows appropriately. Final Answer: cost-benefit analysis

Question 6

Operations and supply chain: in an inventory management system, which core questions must the system answer to control replenishment and stock levels effectively?

Accepted Answer

Introduction / Context: Inventory management systems support purchasing and operations by deciding exactly when to place a replenishment order and how many units to order. These two decisions drive service levels, carrying costs, and stockout risk. Framing the problem correctly separates strategic analysis (e.g., why demand is rising) from operational control (timely reorder decisions). Given Data / Assumptions: An organization tracks on-hand stock, demand, lead time, and costs. The system applies policies such as reorder point and order quantity. The goal is to maintain availability at minimum total cost. Concept / Approach: Classical control focuses on two levers: timing and size. Timing is solved by a reorder point (place an order when inventory position drops to a threshold, often demand during lead time plus safety stock). Size is set by a fixed quantity (like EOQ) or by filling up to a target level (periodic review). Analytics such as ABC classification, service level targets, and safety stock formulas refine these choices, but they still answer the same paired questions. Step-by-Step Solution: Identify operational questions for replenishment control.Map timing → reorder point (ROP); size → order quantity (Q).Conclude the system must answer “when to order” and “how much to order.” Verification / Alternative check: Standard models (EOQ, ROP, periodic review) explicitly compute ROP for timing and EOQ or order-up-to levels for size, confirming these are the primary outputs of an inventory system. Why Other Options Are Wrong: What and why: too general; useful for analysis, not for daily control. Who and why: concerns responsibility and rationale, not replenishment math. Where and when: location may matter in multi-echelon networks, but the universal pair is timing and quantity. Common Pitfalls: Confusing diagnostic questions (why demand changed) with control questions (when/how much). Also, ignoring lead-time variability leads to underestimating safety stock and stockouts. Final Answer: when and how much

Question 7

Optimization fundamentals: in linear programming (LP), what does solving the model identify for a well-posed objective and constraints?

Accepted Answer

Introduction / Context: Linear programming (LP) is a cornerstone of operations research used to allocate scarce resources optimally under linear constraints. A correct grasp of LP outputs helps managers move from qualitative judgment to quantitative, defensible decisions for production planning, logistics, staffing, and more. Given Data / Assumptions: An objective function (maximize profit or minimize cost) is linear. Decision variables and constraints are linear with feasible solutions. Standard solvers (simplex or interior point) can find an optimal basic feasible solution if one exists. Concept / Approach: Solving an LP yields both the optimal decision vector (variable quantities) and the optimal objective value (best achievable profit or cost). Dual information (shadow prices) and reduced costs also emerge, supporting sensitivity analysis. But the two headline results remain the variable levels and the associated optimal objective value. Step-by-Step Solution: Formulate LP: objective + constraints + non-negativity.Run the solver; obtain optimal variable values.Compute the optimal objective value using those variables. Verification / Alternative check: Solver reports list variable levels (x*) and the optimal objective (z*), often with dual values and sensitivity ranges, confirming that both outcomes are identified by LP. Why Other Options Are Wrong: Only (a) or only (b) is incomplete because LP simultaneously returns both. “Neither” is incorrect because LP solutions explicitly provide these results when feasible and bounded. Common Pitfalls: Ignoring feasibility/boundedness checks; mis-specified constraints can yield infeasible or unbounded models, in which case optimal values do not exist. Final Answer: both (a) and (b)

Question 8

Digital communications: which statement correctly characterizes parallel data transmission compared to serial transmission in microcomputer contexts?

Accepted Answer

Introduction / Context: Data can be transmitted either serially (one bit at a time) or in parallel (multiple bits simultaneously). Understanding the distinguishing features of parallel transmission clarifies why it is common inside computers and peripherals over short distances, while serial links dominate external, longer-range communication between systems. Given Data / Assumptions: “Parallel” refers to multiple data lines carrying bits at the same time (commonly 8 bits for a byte-wide path). Microcomputers often use serial protocols (USB, RS-232, Ethernet) for inter-computer links. Parallel is typically faster over short distances but suffers from skew and crosstalk at longer distances. Concept / Approach: The defining property of parallel transmission is that multiple bits (frequently a whole byte) move at the same instant across separate conductors. Historically, printer ports and internal buses are parallel. In contrast, “speed quoted only in bits per second” is not unique to parallel; both serial and parallel can be expressed in bps or bytes per second. Parallel is not inherently slower; over short spans it is often faster, though modern serial technologies achieve high aggregate rates. Finally, inter-computer communication today is predominantly serial, not parallel. Step-by-Step Solution: Identify the core characteristic: simultaneous multi-bit transfer.Test each statement against common practice and definitions.Select the statement that uniquely and correctly defines parallel transmission. Verification / Alternative check: Textbooks define parallel transmission by width (e.g., 8-bit or wider buses). Interface standards (PCI/older printer ports) historically embody this definition. Why Other Options Are Wrong: Only in bps: not exclusive to parallel. Slower than serial: generally false for short distances. Most microcomputers communicate this way: false; serial dominates external comms. All of the above: incorrect due to the above errors. Common Pitfalls: Assuming “serial = slow” and “parallel = always faster” universally; context (distance, clocking, encoding) matters. Final Answer: It involves the simultaneous transmission of eight bits.

Question 9

Banking technology acronym: in retail banking, what does CBCT stand for in the context of customer terminals and bank connectivity?

Accepted Answer

Introduction / Context: Banking and financial services employ many acronyms to describe channels and terminals that connect customers to bank systems. Knowing the correct expansion of CBCT helps distinguish communication-oriented devices from credit-specific or purely commercial banking equipment terms. Given Data / Assumptions: CBCT refers to a customer-facing terminal used to communicate with bank systems. The emphasis is on communication rather than on a specific credit function. The term is used in discussions of self-service banking and electronic access channels. Concept / Approach: “Customer-Bank Communication Terminal” explicitly names both the parties (customer and bank) and the purpose (communication). Alternative expansions that replace “communication” with “credit” are narrower and do not reflect the general role of such terminals, which may handle inquiries, transfers, bill payments, and other interactive services beyond credit alone. Step-by-Step Solution: Match each candidate expansion to the general-purpose communication function.Eliminate options that over-specialize to “credit.”Select the expansion that highlights two-way communication between customer and bank. Verification / Alternative check: Banking channel documentation and legacy exam glossaries expand CBCT as a communication terminal for customer-bank interaction, not exclusively a credit device. Why Other Options Are Wrong: Credit-terminal variants limit scope incorrectly. “Commercial Bank Communication Terminal” omits the customer party and suggests a bank-internal device. “None of the above” is incorrect because the correct expansion is present. Common Pitfalls: Confusing CBCT with POS, ATM, or credit-only terminals; CBCT emphasizes broad communication capabilities. Final Answer: Customer-Bank Communication Terminal

Question 10

Order-to-cash controls: at which point in the sales process is a customer's credit typically checked to prevent uncollectible receivables and reduce risk?

Accepted Answer

Introduction / Context: Credit checks are a critical internal control in the order-to-cash cycle. Verifying a customer’s credit standing before committing inventory or promising shipment reduces bad debt exposure and avoids costly returns or collection efforts. Given Data / Assumptions: Orders flow from inquiry/quotation → order entry → fulfillment → invoicing. Credit policy defines limits and terms for each customer account. The goal is to block or review risky orders early, before allocation and shipment. Concept / Approach: The practical and most common control point is the order entry step. When the salesperson or CSR confirms items, prices, and delivery, the system checks the customer’s current balance, overdue status, and credit limit. If the order exceeds limits or the account is on hold, the order is halted or routed for approval. While credit can also be reviewed at later stages, the cost of stopping an order rises the further it moves downstream. Step-by-Step Solution: Map the process stages and risks.Place the control where the decision to accept the order is made: order entry.Confirm that the system enforces limits before fulfillment and invoicing. Verification / Alternative check: ERP systems (e.g., SAP, Oracle) implement automatic credit checks at order entry using rules for limits, dunning levels, and risk categories, corroborating this placement. Why Other Options Are Wrong: Quotation: non-binding; checking here may be premature. Order processing (generic): ambiguous and often occurs after entry; too late. Any of the above: overbroad; the standard control point is order entry. Common Pitfalls: Allowing manual overrides without approval; failing to re-check at shipment if terms or exposure changed significantly. Final Answer: order entry system

Question 11

MIS linkage: how is management connected to the organization's information processor (MIS/DSS) in terms of inputs and outputs?

Accepted Answer

Introduction / Context: Management information systems (MIS) and decision support systems (DSS) exist to turn data into actionable insight and to capture decisions for execution. Understanding the bidirectional linkage clarifies why data governance and decision logging are both essential for organizational learning and control. Given Data / Assumptions: Managers consume reports, dashboards, and models (inputs). They issue decisions, plans, and policies (outputs) that drive processes. Systems collect operational data and also record decision outcomes. Concept / Approach: The connection is two-way: systems feed data to management (situation awareness), and management returns decisions to the organization (actions, approvals, parameter changes). This closed-loop aligns with cybernetic control: measure, compare, decide, act. Both elements are necessary; data without decisions is inert, and decisions without data risk being uninformed. Step-by-Step Solution: Trace the loop: data capture → processing → information to managers.Managers analyze and decide → decisions encoded as system directives.Therefore management is linked by both data (to managers) and decisions (from managers). Verification / Alternative check: Control frameworks (plan–do–check–act) and MIS textbooks describe this reciprocal relationship explicitly, confirming that both data and decisions form the linkage. Why Other Options Are Wrong: Selecting only one direction ignores the closed-loop nature of management control; “neither” contradicts the purpose of MIS/DSS. Common Pitfalls: Treating MIS as one-way reporting; effective systems also capture and route managerial decisions for execution and audit. Final Answer: both (a) and (b)

Question 12

Econometric decision support: what foundational components are required to build and run an econometric model for managerial analysis?

Accepted Answer

Introduction / Context: Econometric models quantify relationships among economic variables for forecasting and policy analysis. Organizations use them to test scenarios for pricing, demand, and investment decisions. Implementing such models within a DSS requires more than mathematical formulas; it needs robust data, software, and computing resources. Given Data / Assumptions: Historical and current economic datasets are available and curated. Modeling software or program libraries exist to estimate and simulate models. Sufficient compute and storage support data volumes, logs, and outputs. Concept / Approach: Three pillars are essential: (1) Data base containing time series, panels, and metadata; (2) Model base offering estimation (e.g., OLS, GLS), diagnostics, and simulation routines; (3) Computing resources with ample storage and processing for large datasets, intermediate matrices, and scenario outputs. Without any one of these, estimation quality, reproducibility, or scalability suffers. Step-by-Step Solution: Acquire and clean economic data; document units and sources.Select or implement econometric routines; validate on known benchmarks.Provision compute/storage; schedule runs; archive results for auditing. Verification / Alternative check: Econometrics workflows universally reference data management, algorithms, and computing as co-requisites, from academic labs to central banks and industry analytics teams. Why Other Options Are Wrong: Each single component is necessary but insufficient alone; the correct answer encompasses all three foundational needs. Common Pitfalls: Underestimating data preparation; ignoring diagnostics (autocorrelation, heteroskedasticity); or skimping on storage for reproducible pipelines. Final Answer: All of the above

Question 13

Strategic information from computing: which capabilities enable information systems to support long-range planning and executive decision-making?

Accepted Answer

Introduction / Context: Strategic Information Systems (SIS) go beyond operational reporting to shape long-term direction. They combine data, models, and interfaces that help executives explore futures, weigh trade-offs, and align initiatives with strategy. Understanding their capabilities clarifies investment priorities for analytics and planning platforms. Given Data / Assumptions: Executives need structured methods for comparing alternatives. Corporate models (financial, market, capacity) support scenario planning. Well-designed systems prompt managerial reflection rather than rote acceptance. Concept / Approach: Decision analysis brings formal tools (e.g., payoff matrices, sensitivity analysis, risk modeling) to strategic choices. Corporate planning models integrate drivers across functions (sales, costs, capex) and time horizons. Interfaces such as dashboards and what-if workbenches stimulate thinking by revealing assumptions and consequences transparently. Together these features elevate the discussion from data recall to strategic insight. Step-by-Step Solution: Enable decision analysis: structure objectives, alternatives, and trade-offs.Embed corporate models: link strategy to financial and operational projections.Design interactions that provoke inquiry and reassessment. Verification / Alternative check: Case studies of effective SIS implementations show adoption when systems provide both rigorous analysis and intuitive exploration, prompting managerial deliberation. Why Other Options Are Wrong: Each single capability helps, but strategic impact arises from their combination; hence “All of the above.” Common Pitfalls: Overemphasizing dashboards without underlying models; or using models without engaging interfaces that encourage reflection. Final Answer: All of the above

Question 14

Systems concepts: a basic system must be composed of more than one what, according to standard definitions in systems theory?

Accepted Answer

Introduction / Context: Systems theory defines a system as a set of interrelated elements working together toward a purpose within an environment. Grasping the minimal building blocks—elements and their relationships—helps in modeling organizations, information flows, and engineered artifacts accurately. Given Data / Assumptions: A “system” is not a single, indivisible object; it comprises parts. Elements interact via relationships (flows, signals, constraints). Subsystems are themselves systems within a larger whole, but not required at the most basic level. Concept / Approach: The most fundamental requirement is multiplicity of elements. With only one element there are no internal relationships, making the concept of “system” vacuous. Subsystems may exist in complex systems, and supersystems describe the embedding context, but neither is necessary for the minimal definition. Therefore, the correct answer focuses on elements. Step-by-Step Solution: Recall the definition: a system = elements + relationships + purpose.Infer that “more than one element” is required to have internal structure/interaction.Select “element” as the correct completion. Verification / Alternative check: Systems analysis texts consistently define systems as composed of multiple elements or components; subsystems are optional hierarchical groupings, not prerequisites. Why Other Options Are Wrong: Subsystem: a grouping within larger systems; not required for the simplest system. Super system: the environment or larger containing system; a system can be defined without invoking it. All of the above: incorrect because only “element” is fundamentally necessary. Common Pitfalls: Equating organizational charts (subsystems) with the definition of a system; minimal systems need parts, not necessarily a layered hierarchy. Final Answer: element

Question 15

Managerial levels and flows: at which level of management does most of the flow of physical resources (goods, materials, and services) typically occur in an organization?

Accepted Answer

Introduction / Context: Organizations distinguish among top, middle, and lower (supervisory/operational) management levels. Understanding where physical resource flows are coordinated clarifies information needs and system design: operational systems focus on execution, while higher levels emphasize planning and control. Given Data / Assumptions: Physical flows include receiving, warehousing, production, order fulfillment, and service delivery. Supervisors coordinate day-to-day tasks, schedules, and exceptions. Higher levels set policies and plans but are less involved in direct physical handling. Concept / Approach: The bulk of physical flows are executed where work happens: on shop floors, in warehouses, and in service front lines—managed by lower-level supervisors and team leads. Middle management integrates resources across departments and time horizons, while top management sets strategic direction and allocates capital. Thus, although all levels influence resource flow, the most direct, continuous flow occurs at the lower level. Step-by-Step Solution: Map flows to organizational layers: operations vs. planning vs. strategy.Identify who schedules crews, assigns machines, and handles exceptions daily: lower management.Select the level where physical movement is most prevalent. Verification / Alternative check: Operations management practice and textbooks place execution and short-term control at supervisory levels, confirming the answer. Why Other Options Are Wrong: Top management: minimal direct involvement in routine physical flows. Middle management: coordinates and plans but does not handle the majority of daily physical movement. All of the above: overgeneralizes; “most” occurs at the lower level. Common Pitfalls: Confusing decision impact with physical flow presence; strategic decisions influence flows but do not equate to direct handling. Final Answer: lower management level

Question 16

Enterprise information systems case study:  Pillsbury's SOAR system was designed specifically for which managerial audience within the organization?

Accepted Answer

Introduction / Context: Pillsbury's SOAR is a classic example frequently cited in Management Information Systems literature to illustrate Executive Information Systems and strategic Decision Support. The question asks which managerial audience the SOAR system primarily served. Understanding the target users clarifies design choices such as data aggregation, visualization, and the cadence of updates that support top-level strategy work rather than day-to-day operations. Given Data / Assumptions: SOAR is presented as an enterprise-level information system. Strategic managers need high-level, summarized, and exception-focused information. Operational and tactical users tend to require detailed, frequent, transaction-level data. Concept / Approach: Executive and strategic systems highlight key performance indicators, trend analysis, market intelligence, and exception alerts. They integrate internal and external data, support drill-down from summary to detail, and emphasize dashboards that assist long-range planning and competitive positioning. This contrasts with operational systems that feed daily scheduling, inventory movement, or customer service work, and with purely tactical planning tools that sit between daily execution and long-range strategy. Step-by-Step Solution: Identify the system class: enterprise/strategic support rather than transaction processing.Map user needs: executives need synthesized, comparative, and forward-looking insights.Select the audience most aligned with these characteristics: strategic level managers. Verification / Alternative check: Case teaching notes consistently frame SOAR as an executive/strategic-oriented information system designed to inform corporate direction, portfolio choices, and market responses, not to run daily shop-floor tasks. Why Other Options Are Wrong: Sales persons: need customer-level detail and mobile tools; not the SOAR focus. Operational level managers: require granular, real-time task control, not the summarized executive view. Tactical level managers: mid-range planning, but SOAR is typically associated with top-level strategy. None of the above: incorrect because strategic managers fit. Common Pitfalls: Mistaking any company-wide dashboard as operational; scope, abstraction level, and decision horizon define the target user group. Final Answer: strategic level managers

Question 17

Materials Requirements Planning (MRP):  Once net requirements have been calculated from gross needs and on-hand/receipts, what is the next planning step?

Accepted Answer

Introduction / Context: In Materials Requirements Planning (MRP), planners convert the Master Production Schedule (MPS) and Bill of Materials (BOM) into time-phased material plans. After computing net requirements (gross requirements minus scheduled receipts and projected on-hand), planners must translate these figures into actionable schedules that align supply with demand across time buckets. Given Data / Assumptions: Net requirements have already been computed. Lot sizing, lead times, and time-phasing are relevant. We are selecting the immediate planning action, not execution on the shop floor. Concept / Approach: MRP proceeds from net requirements to planned order receipts and planned order releases, which together form the production schedule for in-house parts and the purchasing schedule for procured items. This stage respects lot-sizing rules (for example, lot-for-lot, fixed order quantity) and offsets by lead time to determine when to release orders. Step-by-Step Solution: Compute net requirements by period.Apply lot-sizing to convert net requirements to planned order quantities.Offset by lead times to generate planned order releases (the production schedule). Verification / Alternative check: Standard MRP tables show columns for gross requirements → scheduled receipts → projected on-hand → net requirements → planned order receipts → planned order releases, confirming the scheduling step follows netting. Why Other Options Are Wrong: Determine machine/manpower requirements: capacity requirements planning is a subsequent, complementary process. Calculate gross requirements: already done earlier. Start the production process: execution follows a finalized and released schedule, not immediately after netting. Common Pitfalls: Confusing material planning (what to make/buy and when) with capacity planning (can we make it) and actual execution. Final Answer: determine the production schedule

Question 18

Data processing careers:  Which one of the following roles is most typically classified under data processing operations (as opposed to systems development)?

Accepted Answer

Introduction / Context: Information technology departments distinguish between operations roles that run and monitor systems and development roles that design and build them. Clarifying which jobs sit in data processing operations helps learners understand career paths and control responsibilities in an IT organization. Given Data / Assumptions: Operations includes running jobs, monitoring consoles, managing backups, and handling batch processing. Development includes requirements, design, coding, and testing. Legacy terms like “key-punch operator” refer to historical input roles, not modern operations management. Concept / Approach: A computer operator is a prototypical operations role: scheduling jobs, supervising batch runs, responding to alerts, mounting media, and coordinating with help desk and network teams. Programmers and system analysts specify and build applications. While key-punch operators historically supported data capture, the core ongoing operations seat in today’s framing is the computer operator role. Step-by-Step Solution: List responsibilities associated with each role.Match operations-domain tasks (run-time oversight) to the “computer operator.”Eliminate roles that primarily create or analyze systems (programmer, system analyst). Verification / Alternative check: Organizational charts commonly group computer operations under IT operations or infrastructure, distinct from application development teams. Why Other Options Are Wrong: Programmer: systems development. System Analyst: requirements/design, not run-time operations. Key-punch operator: historic data-entry function; not central to modern operations management. Common Pitfalls: Equating any non-programming task with “operations.” Operations is focused on running and safeguarding production systems. Final Answer: Computer operator

Question 19

Marketing planning scope:  Marketing planning typically addresses which of the following areas within a firm’s go-to-market strategy?

Accepted Answer

Introduction / Context: Marketing planning links market analysis to action: selecting segments, allocating budgets, and orchestrating channels and promotions. The question highlights three concrete planning areas and asks whether they fit within the marketing plan’s remit. Understanding the breadth of marketing planning is crucial for MIS designers who must support these decisions with timely information. Given Data / Assumptions: Advertising placement is part of the promotion mix. Consignment contracts affect channel policy and pricing strategy. Sales force size and deployment affect coverage and revenue. Concept / Approach: Marketing planning coordinates product, price, place, and promotion decisions. It also includes sales management (territories, quotas), channel arrangements (including consignment), and media planning. Therefore, all listed items fall squarely within marketing planning activities and are interdependent in the overall plan. Step-by-Step Solution: Map each listed activity to the 4Ps and sales management.Confirm each is a standard marketing planning task.Select “All of the above.” Verification / Alternative check: Marketing management texts include media planning, channel contracts, and sales force design as core planning decisions supported by market research and forecasting. Why Other Options Are Wrong: Choosing any single item understates the scope of marketing planning, which integrates multiple levers for impact. Common Pitfalls: Treating advertising as the entirety of marketing; it is one component among many interrelated decisions. Final Answer: All of the above

Question 20

Financial benefits of a computerized MIS:  Which of the following improvements can a well-designed MIS enable through better cash and information management?

Accepted Answer

Introduction / Context: A computerized Management Information System (MIS) enhances visibility into receivables, payables, inventories, and cash positions. With timely and accurate information, treasurers and controllers can optimize working capital and financing decisions, improving financial outcomes beyond simple reporting speed. Given Data / Assumptions: Accurate, current cash forecasts reduce idle balances. Improved collections and payable timing lower borrowing needs. Better credit positioning can qualify a firm for lower interest rates. Concept / Approach: Information quality drives financial choices. For example, precise daily cash positions allow investing surpluses in short-term instruments (raising returns) and timing payments to minimize borrowing (reducing loan frequency/size). Strong information controls and predictable cash flows can improve perceived creditworthiness, contributing to lower borrowing costs. Step-by-Step Solution: Link MIS outputs (aging reports, cash forecasts) to action (invest surplus, time disbursements).Quantify effect: less idle cash → more invested at short-term yields.Reduced reliance on ad hoc short-term loans → potential for better rates and fees. Verification / Alternative check: Working capital optimization frameworks emphasize information timeliness and accuracy as prerequisites for treasury gains, confirming all listed benefits are plausible outcomes. Why Other Options Are Wrong: Each single item can be true; selecting only one ignores the cumulative effect of an MIS on treasury performance. Common Pitfalls: Assuming MIS automatically creates savings without process changes; benefits arise when managers act on improved information. Final Answer: All of the above

Management Information Systems Questions