Advertisement Upgrade to remove ads

1) The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer.
A) distribution resource planning
B) supply chain
C) procurement
D) demand chain
E) value network

B) supply chain

2) Which of the following statements about just-in-time strategies is true?
A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their
warehouses or stores until items are scanned at the point of sale.
B) Companies using this strategy allow the suppliers to manage the manufacturer's inventory levels based on preestablished service levels.
C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
E) The manufacturer or retailer using this strategy shares real-time sales data with their suppliers, who maintain inventory levels based on preestablished agreements.

D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.

3) Altrix Corp., an Indonesian firm, recently faced an unanticipated decline in the demand for its product. This dented the company's financial strength not only through loss of sales, but also because it ended up with a substantial inventory of raw materials that the company wasn't able to use. As a result, Altrix has been rethinking its approach to inventory management. Some of its board members are suggesting that they use the just-in-time (JIT) system to avoid such situations in the future. Which of the following, if true, could undermine the argument in favor of JIT?
A) Some of the raw materials Altrix requires are perishable in nature.
B) Altrix Corp. has already integrated backward by purchasing supplies located in different parts of Indonesia.
C) Altrix Corp. recently entered into a 3-year contract with a leading warehousing firm to use their storage space on a "need be" basis.
D) Altrix Corp. is bidding for a huge government contract that could give its sales some stability.
E) Labor problems are a critical issue in this country.

A) Some of the raw materials Altrix requires are perishable in nature.

4) ________ is a business model in which the suppliers to a manufacturer manage the manufacturer's
inventory levels based on preestablished service levels.
A) Just-in-case manufacturing
B) Scan-based trading
C) Vendor-managed inventory
D) Lean manufacturing
E) Just-in-time

C) Vendor-managed inventory

5) Which of the following statements about vendor-management inventory (VMI) is true?
A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
B) Manufacturers using VMI business model, manage the inventories themselves and send out requests for additional items to the vendors as needed.
C) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their
warehouses or stores until items are scanned at the point of sale.

D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.

6) One major problem affecting supply chains are ripple effects referred to as the ________.
A) backflush effect
B) multiplier effect
C) bullwhip effect
D) incremental effect
E) stockwhip effect

C) bullwhip effect

7) Computer maker, Dell, realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a ________.
A) scan-based trading system
B) customer-managed inventory system
C) just-in-time inventory management system
D) vendor-managed inventory system
E) just-in-case inventory management system

C) just-in-time inventory management system

8) MaxSteel Inc., has been supplying steel to a well known car manufacturer, Agis Corp., for the past 3 years. Concerned employees at Max can directly access Agis Corp.'s inventory and sales information via electronic data interchange.This allows MaxSteel to monitor Agis Corp.'s inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following, if true, would most strengthen Agis' supply chain strategy?
A) Agis Corp.'s management decides to take strong measures for increasing their safety stock of all raw materials.
B) Agis Corp., is taking measures to add wholesalers and retailers into their supply chain.
C) Agis Corp., has a strong desire to purchase MaxSteel in order to reduce dependency.
D) Agis Corp., is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain.
E) Agis Corp., understands that the information shared with MaxSteel will not be shared outside their organization.

B) Agis Corp., is taking measures to add wholesalers and retailers into their supply chain.

9) Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products, but was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the drug and legal damages of over $13 billion. This is an example of ________.
A) a product recall
B) lean manufacturing
C) production control
D) the bullwhip effect
E) a green business

A) a product recall

10) La Belle Inc. introduced a new line of accessories for teenaged girls last season. Following its immense popularity with the targeted group, the company anticipated high sales this season. It ordered raw materials accordingly, and even ensured that they had sufficient inventory to meet excess demand, if any. However, the success of the new line turned out to be a fad, as the teens soon turned to other products offered by competing brands, and La Belle's sales declined. This caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had piled up in anticipation of good sales. This is an example of ________.
A) the multiplier effect
B) hindsight bias
C) product recall
D) the bullwhip effect
E) safety stock planning

D) the bullwhip effect

11) Which of the following is the main objective of information systems that focus on improving supply
chains?
A) discouraging vendor-managed inventory systems
B) accelerating product development and innovation
C) encouraging sustainable production processes
D) decentralizing the organizations
E) encouraging the bullwhip effect

B) accelerating product development and innovation

12) Which of the following is the key use of distribution planning module of supply chain management?
A) to ensure that the materials required for production are available when needed
B) to forecast and plan anticipated demand for products
C) to optimize the allocation of available supply to meet demand
D) to support production processes taking into account capacity and material constraints
E) to support receiving, storing, and picking of goods in a warehouse

C) to optimize the allocation of available supply to meet demand

13) The key use of order promising module of supply chain management is to ________.
A) work with partners across the supply network to improve accuracy of demand forecasts, reduce
inventory buffers, and improve customer service
B) monitor key performance indicators to assess performance across the supply chain
C) manage logistics between company locations or from company to customers, taking into account
transportation modes and constraints
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times

A) work with partners across the supply network to improve accuracy of demand forecasts, reduce

14) The key use of manufacturing execution module of supply chain management is to ________.
A) forecast and plan anticipated demand for products
B) support production processes taking into account capacity and material constraints
C) ensure that the materials required for production are available where needed, when needed
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) support receiving, storing, and picking of goods in a warehouse

B) support production processes taking into account capacity and material constraints

15) ________ involves the development of various resource plans to support the efficient and effective production of goods and services.
A) Supply chain visibility
B) Supply chain analytics
C) Supply chain execution
D) Supply chain network
E) Supply chain planning

E) Supply chain planning

16) Supply chain planning begins with ________.
A) product demand planning and forecasting
B) distribution planning
C) production scheduling
D) inventory planning
E) safety stock planning

A) product demand planning and forecasting

17) Demand planning and forecasting leads to the development of the overall ________.
A) sourcing plan
B) transportation schedule
C) production plan
D) expected demand
E) safety stock plan

D) expected demand

18) ________ focuses on delivering products or services to consumers as well as warehousing, delivering, invoicing, and payment collection.
A) Product demand planning
B) Production planning
C) Distribution planning
D) Safety stock planning
E) Inventory planning

C) Distribution planning

19) Distribution planning leads to the development of the overall ________.
A) production plan
B) safety stock plan
C) demand forecast
D) transportation schedule
E) sourcing plan

D) transportation schedule

20) Production scheduling ________.
A) focuses on the coordination of all activities needed to create the product or service
B) focuses on delivering products or services to consumers as well as warehousing
C) leads to the development of a sourcing plan
D) focuses on the development of inventory estimates
E) focuses on delivering products or services to consumers as well as invoicing and payment collection

A) focuses on the coordination of all activities needed to create the product or service

21) Using analytical tools to optimally utilize labor, materials, and equipment is a part of the ________ step of supply chain planning.
A) demand forecasting
B) production scheduling
C) distribution planning
D) inventory planning
E) transportation scheduling

B) production scheduling

22) Inventory and safety stock planning ________.
A) leads to the development of the overall demand forecast
B) focuses on the coordination of all activities needed to create the product or service
C) focuses on the development of inventory estimates
D) focuses on delivering products or services to consumers as well as warehousing
E) leads to the development of a transportation schedule

C) focuses on the development of inventory estimates

23) Inventory and safety stock planning leads to the development of a(n) ________.
A) outsourcing plan
B) production plan
C) transportation schedule
D) demand forecast
E) sourcing plan

E) sourcing plan

24) Supply chain execution ________.
A) involves the development of a sourcing plan
B) refers to the use of key performance indicators to monitor production
C) involves the management of information flow
D) refers to the ability to track products as they move through the supply chain
E) involves the development of demand forecast

C) involves the management of information flow

25) Which of the following statements is true about product flow, a key element of supply chain?
A) It refers to the ability to track products as they move through the supply chain.
B) It refers to the movement of information along the supply chain, such as order processing and delivery status updates.
C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer.
D) It tracks a one-way flow of products from producers to consumers but cannot process returns or customer refunds.
E) It refers primarily to the movement of financial assets throughout the supply chain.

C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer.

26) Which of the following statements is true about information flow, a key element of supply chain
execution?
A) A key element of this aspect of supply chain execution is to foresee external events.
B) Information can only flow up the supply chain.
C) It refers to the use of key performance indicators to monitor performance of the entire supply chain.
D) The key element to the information flow is the complete removal of paper documents.
E) It refers primarily to the movement of financial assets throughout the supply chain.

D) The key element to the information flow is the complete removal of paper documents.

27) Which of the following key elements of a supply chain includes information related to payment schedules, consignment, and ownership of products and materials?
A) financial flow
B) personnel flow
C) information flow
D) product flow
E) material flow

A) financial flow

28) ________ refers not only to the ability to track products as they move through the supply chain but also to foresee external events.
A) Supply chain visibility
B) Demand planning and forecasting
C) Supply chain analytics
D) Supply network collaboration
E) Supply chain efficiency

A) Supply chain visibility

29) ________ refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution.
A) Demand forecasting
B) Supply network collaboration
C) Supply chain visibility
D) Supply chain efficiency
E) Supply chain analytics

E) Supply chain analytics

30) ________ is the extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs, sometimes by sacrificing excellent customer service.
A) Supply chain analytics
B) Supply chain effectiveness
C) Supply network collaboration
D) Supply chain efficiency
E) Supply chain visibility

D) Supply chain efficiency

31) ________ is the extent to which a company's supply chain is focusing on maximizing customer service regardless of procurement, production, and transportation costs.
A) Supply chain visibility
B) Supply chain effectiveness
C) Supply chain analytics
D) Supply chain efficiency
E) Supply network collaboration

B) Supply chain effectiveness

32) Which of the following is an example of supply chain efficiency?
A) Federal Express focuses on providing superior service.
B) Caterpillar has high spare parts availability.
C) Dr. Pepper introduces a new flavor of soft drink.
D) Rolex positions itself as a prestige brand.
E) Apple sources its raw materials in a way to keep costs low.

E) Apple sources its raw materials in a way to keep costs low.

33) ________ is a data presentation standard first specified by the World Wide Web Consortium, an international consortium of companies whose purpose is to develop open standards for the Web.
A) Extensible Markup Language
B) Perl
C) MySQL
D) Active Server Pages
E) Unified Modeling Language

A) Extensible Markup Language

34) ________ allow(s) designers of Web documents to create their own customized tags, enabling the definition, transmission, validation, and interpretation of data between applications and between organizations.
A) MySQL
B) Active Server Pages
C) Extensible Markup Language
D) Perl
E) Unified Modeling Language

C) Extensible Markup Language

35) Which of the following statements is true about XML?
A) XML is standardized.
B) XML specifies a particular formatting.
C) XML cannot be tailored to share any data across applications over the Web.
D) XML tags are used to supply interactive content to a Web page.
E) XML instructs systems as to how information should be interpreted and used.

E) XML instructs systems as to how information should be interpreted and used.

36) ________ is an XML-based specification for publishing financial information.
A) Extensible Rights Markup Language
B) Extensible Application Markup Language
C) Extensible Access Control Markup Language
D) Extensible Business Reporting Language
E) Enterprise Mashup Markup Language

D) Extensible Business Reporting Language

37) ________ includes tags for data such as annual and quarterly reports, Securities and Exchange Commission filings, general ledger information, and net revenue and accounting schedules.
A) Extensible Application Markup Language
B) Extensible Business Reporting Language
C) Extensible Access Control Markup Language
D) Enterprise Mashup Markup Language
E) Extensible Rights Markup Language

B) Extensible Business Reporting Language

38) Lee's department store uses the every day low prices strategy. This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers. Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed them to cut out external suppliers and middlemen, further driving down business costs. This implies that the competitive strategy used by this store would most likely focus on ________.
A) supply chain efficiency
B) supply chain visibility
C) supply chain effectiveness
D) operational CRM
E) analytical CRM

A) supply chain efficiency

39) Comptel, a world leader in computer hardware, differentiates itself from its customers by providing excellent after-sales service. This implies that the competitive strategy used by Comptel would most likely focus on ________.
A) supply chain analytics
B) supply chain visibility
C) supply chain effectiveness
D) supply network collaboration
E) supply chain efficiency

C) supply chain effectiveness

40) ________ uses the electromagnetic energy to transmit information between a reader (transceiver) and a processing device.
A) Radio frequency identification
B) High capacity color barcode
C) Interferometric modulator display
D) Photonic computing
E) Electronic product code

A) Radio frequency identification

41) ________ can be used just about anywhere a unique identification system might be needed, such as on clothing, pets, cars, keys, missiles, or manufactured parts.
A) HTML tags
B) RFID tags
C) Spintronics
D) XML tags
E) High capacity color barcode

B) RFID tags

42) Which of the following statements is true about RFID systems?
A) RFID scanning can be done at greater distances than bar code scanning.
B) RFID information is readable depending on the entity's position.
C) RFID tags contain less information than bar codes.
D) All RFID tags are small and relatively inexpensive.
E) RFID requires time-consuming hand scanning.

A) RFID scanning can be done at greater distances than bar code scanning.

43) Which of the following statements about an RFID passive tag is true?
A) They are small and inexpensive.
B) They have a range up to 300 feet or more.
C) They cost more than active tags.
D) They have an internal battery source.
E) They typically cost about $10.

A) They are small and inexpensive.

44) Which of the following statements about an RFID active tag is true?
A) They are inexpensive, with the starting price being 10 cents.
B) They have a range up to 40 feet.
C) They are small compared to passive tags.
D) They have an internal battery source.
E) They are less expensive as compared to passive tags.

D) They have an internal battery source.

45) Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?
A) to track global spend by supplier
B) to encourage bullwhip effect
C) to develop demand forecasts
D) to portray a positive corporate image
E) to collaborate demand and production planning

D) to portray a positive corporate image

46) Which of the following portrays the individualized service benefit of a CRM system?
A) Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively.
B) Web-based interfaces providing product information, sales status, support information, issue tracking, and so on.
C) Integrating all information for all points of contact with the customers, so that all who interact with customers have the same view and understand current issues.
D) Integrated information removing information handoffs, which speeds both sales and support processes.
E) Improved record keeping and efficient methods of capturing customer complaints helping to identify and solve problems faster.

A) Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively.

47) Which of the following rightly explains improved product development on using a CRM system?
A) Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively.
B) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on.
C) Integrated information that removes information handoffs, speeding both sales and support processes.
D) Improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster.
E) Tracking customer behavior over time that helps to identify future opportunities for product and service offerings.

E) Tracking customer behavior over time that helps to identify future opportunities for product and service offerings.

48) Which of the following examples portray the 24/7/365 operation of a CRM system?
A) Web-based interfaces that provide product information, sales status, support information, issue
tracking, and so on.
B) Improved record keeping and efficient methods of capturing customer complaints that assist in
identifying problems faster.
C) Tracking customer behavior over time that helps to identify future opportunities for product and
service offerings.
D) Integrated information that removes information handoffs, speeding both sales and support
processes.
E) Learning how each customer defines product and service quality so that customized product,
pricing, and services can be designed or developed collaboratively.

A) Web-based interfaces that provide product information, sales status, support information, issue
tracking, and so on.

49) Which of the following rightly explains improved planning on using a CRM system?
A) Improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster.
B) Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively.
C) Providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies.
D) Tracking customer behavior over time that helps to identify future opportunities for product and
service offerings.
E) Integrated information that removes information handoffs, speeding both sales and support
processes.

C) Providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies.

50) ________ includes the systems used to enable customer interaction and service.
A) Operational CRM
B) Integrated CRM
C) Collaborative CRM
D) Data warehouse
E) Analytical CRM

A) Operational CRM

51) ________ help create the mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history.
A) Data warehouses
B) Operational CRM systems
C) Analytical CRM systems
D) Integrated CRM systems
E) Collaborative CRM systems

B) Operational CRM systems

52) Which of the following is a component of the operational CRM system?
A) sales force automation
B) data warehouses
C) ERP systems
D) data mining and visualization
E) business intelligence

A) sales force automation

53) Which of the following is a component of the analytical CRM system?
A) enterprise marketing management
B) sales force automation
C) technologies to facilitate communication
D) data mining and visualization
E) customer service and support

D) data mining and visualization

54) Which of the following is a component of the collaborative CRM system?
A) sales force automation
B) data mining and visualization
C) enterprise resource planning systems
D) enterprise marketing management
E) technologies to facilitate communication

E) technologies to facilitate communication

55) ________ is the first component of an operational customer relationship management that supports a broad range of business processes, including account and contact management, territory management, and order processing and tracking.
A) Enterprise marketing management
B) Sales force automation
C) Data warehouse
D) Execution management
E) Customer service and support

E) Customer service and support

56) Which of the following best explains improved morale of sales personnel due to sales force management systems?
A) Customer contact information being recorded using e-forms that automatically provide known customer data.
B) Common systems ensuring that sales personnel follow common processes and procedures.
C) Improved training and less "busywork"allowing a greater focus on selling and revenue generation.
D) Sharing of all sales-related information facilitating successful team selling.
E) E-forms ensuring that customer data is automatically entered.

A) Customer contact information being recorded using e-forms that automatically provide known customer data.

57) ________ refers to systems that automate complaints, product returns, and information requests, among others.
A) Data warehouse
B) Enterprise marketing management
C) Customer service and support
D) Execution management
E) Sales force automation

C) Customer service and support

58) Which of the following advantages accruing to sales personnel can be attributed to sales force management?
A) better planning
B) better sales force tracking
C) better forecasts
D) improved teamwork
E) improved scheduling

E) improved scheduling

59) Which of the following best explains improved information for sales managers on account of sales force management systems?
A) sales performance data automatically tabulated and presented in easy-to-understand tables, charts, and graphs
B) streamlined selling processes and improved communications that allow sales managers to focus more on nonselling activities
C) common systems ensuring that sales managers follow common processes and procedures
D) improved training and less "busywork"allows a greater focus on selling and revenue generation
E) sharing of all sales-related information facilitates successful team selling and the sharing of best practices

A) sales performance data automatically tabulated and presented in easy-to-understand tables, charts, and graphs

60) ________ refers to using multiple communication channels to support the communication preferences of users, such as the Web, the company's Facebook page, industry blogs, telephone and so on.
A) Business intelligence
B) Customer interaction center
C) Enterprise marketing management
D) Execution management
E) Sales force automation

C) Enterprise marketing management

61) ________ tools help a company in the execution of the CRM strategy by improving the management of promotional campaigns.
A) Business intelligence
B) Sales force automation
C) Enterprise marketing management
D) Customer interaction center
E) Execution management

C) Enterprise marketing management

62) ________ focuses on studying customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service.
A) Analytical CRM
B) Sales force automation
C) Operational CRM
D) Collaborative CRM
E) Integrated CRM

A) Analytical CRM

63) Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer.
A) operational CRM
B) integrated CRM
C) analytical CRM
D) collaborative CRM
E) sales force automation

C) analytical CRM

64) Which of the following business processes can be enhanced by the analytical CRM system?
A) sales forecasting and performance analyses
B) account and contact management
C) price, quality, and satisfaction analysis of competitors
D) customer history and preferences management
E) order processing and tracking

C) price, quality, and satisfaction analysis of competitors

65) ________ refers to systems for providing effective and efficient communication with the customer from the entire organization.
A) Analytical CRM
B) Sales force automation
C) Collaborative CRM
D) Operational CRM
E) Business intelligence

C) Collaborative CRM

66) ________ facilitate the sharing of information across the various departments of an organization in order to increase customer satisfaction and loyalty.
A) Collaborative CRM systems
B) Data warehousing systems
C) Operational CRM systems
D) Analytical CRM systems
E) Data mining systems

A) Collaborative CRM systems

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set