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11
30) A supply chain driven by actual customer orders or purchases follows a ________ model.
A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) continuous delivery
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
31) A build-to-order supply-chain model is also called a ________ model.
A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
E) continuous delivery
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
32) 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
E) The mobile digital platform
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
12
33) 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.
E) improved delivery service.
AACSB: Analytical Thinking
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
34) The bullwhip effect can be countered by:
A) globalization.
B) disintermediation.
C) implementing a CRM.
D) reducing information uncertainty.
E) implementing a just-in-time strategy.
AACSB: Analytical Thinking
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
35) Which of the following is not an example of inefficiencies in the supply chain?
A) Parts shortages
B) Underused plant capacity
C) Excessive finished goods inventory
D) High transportation costs
E) High switching costs
AACSB: Analytical Thinking
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
13
36) According to the chapter case study, which of the following software vendors has enabled
Scotts Miracle-Gro to develop consumer-driven demand planning?
A) Oracle
B) JDA Software
C) SAP
D) IBM
E) Salesforce.com
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
37) The Warehouse Management System used by Haworth Incorporated is an example of which
of the following?
A) Supply chain planning system
B) SFA module
C) PRM module
D) ERM module
E) Supply chain execution system
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
38) Which of the following is not true about global supply chains?
A) Performance standards may vary from region to region.
B) Global supply chains typically span greater time differences than domestic supply chains.
C) Global supply chains typically have participants from a number of countries.
D) Supply chain management for global supply chains may need to reflect cultural differences.
E) Global supply chains are no different from domestic supply chains.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
39) Supply chain management systems are a type of enterprise system.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
14
40) The upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
41) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
42) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
43) 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.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
44) Supply chain execution systems enable the firm to generate demand forecasts for a product
and to develop sourcing and manufacturing plans for that product.
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
45) In the pre-Internet environment, supply chain coordination was hampered by the difficulties
of making information flow smoothly among different internal supply chain processes.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
15
46) Inefficiencies in a supply chain are primarily caused by inaccurate or untimely information.
AACSB: Analytical Thinking
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
47) In a pull-based model of SCM systems, production master schedules are based on forecasts
of demand for products.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
48) Total supply chain costs in some industries approach 75 percent of the total operating budget.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
49) A company's supply chain describes how raw materials are transformed into finished
products and shipped to retailers and customers.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
50) To model its existing supply chain and develop optimal manufacturing plans, a firm should
implement a supply chain execution system.
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
51) With new flows of information made possible by web-based tools, supply chain management
can more easily follow a push-based model.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
16
52) The downstream portion of the supply chain includes retailers and customers.
AACSB: Application of Knowledge
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
53) A company having difficulty with timely delivery of parts to its manufacturing plants should
look to implementing a supply chain execution system.
AACSB: Information Technology
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
54) Identify two classifications for supply-chain software. For each classification, identify four
capabilities.
AACSB: Analytical Thinking; Written and Oral Communication
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
17
55) What additional complexities are faced in global supply chains? How does the Internet help
in managing global supply chains?
AACSB: Analytical Thinking; Written and Oral Communication
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
56) Identify two supply-chain models. Which is better?
AACSB: Analytical Thinking; Written and Oral Communication
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
57) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have
hundreds of smaller nurseries based around the country that grow the plant stock. The majority
of their business is conducted online: Consumers purchase typically small quantities of products
online and Plant Away coordinates the shipping from the most appropriate nursery. What unique
problems might you anticipate they have in their supply chain? What might remedy these
problems?
AACSB: Analytical Thinking; Written and Oral Communication
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
18
58) Discuss the business value of supply chain management systems.
AACSB: Application of Knowledge; Written and Oral Communication
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
59) 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
E) supply chain
AACSB: Application of Knowledge
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
60) Which of the following would not be considered a contact point?
A) Email
B) website
C) Intranet
D) Retail store
E) Facebook
AACSB: Application of Knowledge
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
19
61) ________ 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
E) SCP
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
62) ________ modules deal with issues such as setting objectives, employee performance
management, and performance-based compensation.
A) SCM
B) SFA
C) ERM
D) PRM
E) SCP
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
63) Customer relationship management systems typically provide software and online tools for
sales, customer service, and:
A) marketing.
B) inventory management.
C) demand forecasting
D) tracking of the status of goods.
E) warehouse and transportation operations.
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
20
64) SFA modules in CRM systems provide tools for all of the following except:
A) team selling.
B) territory management.
C) sales forecasting.
D) managing sales prospect and contact information.
E) managing customer service requests.
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
65) CRM systems help businesses achieve which of the following business objectives?
A) Enhanced customer intimacy
B) Automated production forecasts
C) Faster time to market with new products and services
D) Enhanced supplier intimacy
E) Automated accounting processes
AACSB: Analytical Thinking
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
66) 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.
E) sales quote generation.
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
67) Marketing modules in CRM systems provide tools for all of the following except:
A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) qualifying leads.
E) identifying opportunities for cross-selling.
AACSB: Information Technology
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
