BuS 305 Chapter 8

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1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business.

Answer: TRUE

2) Enterprise systems are typically built around one or two major business workflows.

Answer: FALSE

3) Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers.

Answer: FALSE

4) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.

Answer: FALSE

5) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

Answer: TRUE

6) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.

Answer: FALSE

7) The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

Answer: TRUE

8) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Answer: FALSE

9) In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.

Answer: TRUE

10) Intranets can be used to integrate information from isolated business processes within the firm to help them manage their internal supply chains.

Answer: TRUE

11) In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.

Answer: FALSE

12) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.

Answer: FALSE

13) Dell Inc. is an example of a push-based model.

Answer: FALSE

14) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.

Answer: TRUE

15) All CRM packages contain modules for PRM and ERM.

Answer: FALSE

16) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com.

Answer: TRUE

17) Cross-selling markets complementary products to customers.

Answer: TRUE

18) CRM software can help organizations identify high-value customers for preferential treatments.

Answer: TRUE

19) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.

Answer: TRUE

20) Enterprise systems require fundamental changes in the way the business operates.

Answer: TRUE

21) From your reading of the Severstal case study, the firm implemented new information systems in order to achieve which of the main six business objectives? A) customer and supplier intimacy B) survival C) improved decision making D) operational excellence

Answer: D

22) Which of the following is not an example of next-generation enterprise applications? A) Open-source solutions B) On-demand solutions C) Solutions incorporating SCM D) Solutions incorporating SOA

Answer: C

23) A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes: A) process management software. B) ERP systems. C) groupware. D) application software.

Answer: B

24) Enterprise software is built around thousands of predefined business processes that reflect: A) the firm's organization. B) industry goals. C) best practices. D) cutting edge workflow analyses.

Answer: C

25) Which of the following is not true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software is expressly built to allow companies to mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance.

Answer: C

26) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Select the functions of the system you wish to use. B) Select the business processes you wish to automate. C) Map the company's business processes to the software's business processes. D) Map the software's business processes to the company's business processes.

Answer: A

27) When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with: A) configuration tables. B) Web services. C) data dictionaries. D) middleware.

Answer: A

28) In order to achieve maximum benefit from an enterprise software package, a business: A) customizes the software to match all of its business processes. B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software's business processes. D) selects only the software that best matches its existing business processes.

Answer: C

29) Supply chain complexity and scale increases when firms: A) move to globalization. B) manage the procurement, manufacturing, and distribution functions themselves. C) produce products and services that coordinate with hundreds or more firms and suppliers. D) modify their existing workflows to comply with supply-chain management systems.

Answer: C

30) Why is overstocking warehouses not an effective solution for a problem of low availability? A) It does not speed product time to market. B) It is an inefficient use of raw materials. C) It increases sales costs. D) It increases inventory costs.

Answer: D

31) A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a: A) distribution channel. B) supply chain. C) value chain. D) marketing channel.

Answer: B

32) Components or parts of finished products are referred to as: A) upstream materials. B) raw materials. C) secondary products. D) intermediate products.

Answer: D

33) A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the: A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain.

Answer: C

34) A company's organizations and processes for distributing and delivering products to the final customers is the: A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain.

Answer: D

35) Uncertainties arise in any supply chain because of: A) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events.

Answer: D

36) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) Safety stock B) Continuous replenishment C) Just-in-time strategies D) Demand planning

Answer: A

37) A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy. A) just-in-time B) frictionless C) bullwhip D) safety-stock

Answer: A

38) A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect. A) network B) bullwhip C) ripple D) whirlpool

Answer: B

39) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) demand; continual C) upstream; downstream D) planning; execution

Answer: D

40) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems. A) demand B) delivery C) planning D) execution

Answer: C

41) Supply chain planning systems: A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders.

Answer: B

42) Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) Distribution management B) Replenishment planning C) Demand planning D) Order planning

Answer: C

43) Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner. A) demand B) delivery C) planning D) execution

Answer: D

44) Capabilities of supply chain execution systems would not include: A) identifying the optimal transportation mode B) tracking the flow of finished goods. C) managing materials. D) managing warehouse operations.

Answer: A

45) From your reading of the Procter & Gamble case study, the company implemented a multi-echelon inventory optimization system to achieve which of the main six business objectives? A) Customer and supplier intimacy B) Operational excellence C) Improved decision making D) Survival

Answer: B

46) A supply chain driven by actual customer orders or purchases follows a ________ model. A) pull-based model B) build-to-stock C) push-based D) replenishment-driven

Answer: A

47) A build-to-order supply-chain model is also called a ________ model. A) supply-based B) demand-driven C) replenishment-driven D) push-based

Answer: B

48) Concurrent supply chains are made possible by which technology? A) ERP systems B) The Internet C) Supply chain management systems D) Just-in-time supply-chain technologies

Answer: B

49) The business value of an effective supply chain management system includes all of the following except: A) faster time to market. B) cost reduction. C) supply matched to demand. D) increased inventory levels.

Answer: D

50) A ________ is a method of interaction with a customer, such as telephone or customer service desk. A) point of presence B) touch point C) sales point D) client channel

Answer: B

51) Which of the following would not be considered a contact point? A) E-mail B) Web site C) Intranet D) Retail store

Answer: C

52) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners. A) SCM B) SFA C) ERM D) PRM

Answer: D

53) ________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. A) SCM B) SFA C) ERM D) PRM

Answer: C

54) Customer relationship management systems typically provide software and online tools for sales, customer service, and: A) marketing. B) account management. C) advertising. D) public relations.

Answer: A

55) SFA modules in CRM systems would provide tools for: A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information.

Answer: D

56) Customer service modules in CRM systems provide tools for: A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information.

Answer: A

57) Marketing modules in CRM systems would provide tools for: A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information.

Answer: C

58) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training? A) Enterprise B) ERM C) PRM D) ERP

Answer: B

59) Selling a customer with a checking account a home improvement loan is an example of: A) operational CRM. B) direct marketing. C) cross-selling. D) cross-channel promotions.

Answer: C

60) ________ management is an important capability for service processes that is found in most major CRM software products. A) Returns B) Lead C) Account D) Events

Answer: A

61) Which of the following is an important capability for sales processes that is found in most major CRM software products? A) Returns management B) Lead management C) Channel promotions management D) Events management

Answer: B

62) Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications. A) operational CRM B) analytical CRM C) operational SCM D) analytical SFA

Answer: B

63) Analytical CRM applications: A) include tools for marketing automation. B) provide consolidated data for operational CRM applications. C) are based on data warehouses consolidated from operational CRM applications. D) provide customer-facing applications.

Answer: C

64) Operational CRM applications include tools for: A) identifying buying patterns. B) calculating CLTV. C) salesforce automation. D) pinpointing unprofitable customers.

Answer: C

65) Analyzing customer buying patterns is an example of: A) CLTV. B) analytical CRM. C) operational CRM. D) demand planning.

Answer: B

66) Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company? A) Churn rate B) CLTV C) Cost per lead D) Cost per sale

Answer: B

67) The measurement of the number of customers who stop using or purchasing products or services from a company is called: A) switching costs. B) churn rate. C) CLTV. D) switch rate.

Answer: B

68) Which of the following statements about enterprise applications is not true? A) The total implementation cost of a large system might amount to four to five times the initial purchase price for the software. B) Enterprise applications introduce "switching costs." C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications are best implemented when few changes in business processes are required.

Answer: D

69) ________ integrate(s) multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner and provide a greater degree of cross-functional integration than the traditional enterprise applications. A) PRM software B) SFA software C) ERP suites D) Service platforms

Answer: D

70) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. A) e-business suites B) ERP systems C) middleware D) legacy systems

Answer: A

71) ________ consists of a set of interdependent software modules that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing.

Answer: Enterprise software

72) As they move through the ________, raw materials are transformed into finished products and shipped to retailers and customers.

Answer: supply chain

73) In a(n) ________ strategy, components arrive exactly at the moment they are needed, and finished goods are shipped as they leave the assembly line.

Answer: just-in-time

74) To model its existing supply chain and make better decisions about managing inventory, a firm would implement the type of SCM called supply chain ________ systems.

Answer: planning

75) With new flows of information made possible by Web-based tools, supply chain management can more easily follow a(n) ________ model.

Answer: pull-based

76) ________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.

Answer: Sales force automation, SFA

77) ________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.

Answer: Operational

78) The ________ cycle time is the total elapsed time from the time a purchase requisition is generated to the time the payment for the purchase is made.

Answer: requisition-to-pay

79) Enterprise-wide ________ platforms provide a greater degree of cross-functional integration than the traditional enterprise applications.

Answer: service

80) The most explosive growth in SaaS offerings has been for ________ software, exemplified by the leadership in hosted solutions by Salesforce.com

Answer: customer relationship management, CRM

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