C. material flows
D. information flows
E. financial flows
72. _____ involve money transfers, payments, credit card information and authorization, payment
schedules, e-payments, and credit-related data.
A. Reverse flows
B. Reverse logistics
C. Material flows
D. Information flows
E. Financial flows
73. Which of the following is not a goal of supply chain management?
A. to reduce uncertainty along the supply chain
B. to decrease inventory levels
C. to increase cycle time
D. to improve customer service
E. to improve business processes
74. Interorganizational information systems result in all of the following except:
A. reduced costs of routine business transactions
B. improved quality of information flow
C. reduced errors
D. increased cycle time
E. eliminated paper processing
75. In the _____, the production process begins with a forecast.
A. supply chain model
B. inventory model
C. pull model
D. vertical integration model
E. push model
76. In the _____, the production process begins with a customer order.
A. supply chain model
B. inventory model
C. pull model
D. vertical integration model
E. push model
77. Which of the following is not a problem along the supply chain?
A. poor customer service
B. high inventory costs
C. loss of revenues
D. decreased cycle times
E. extra cost of expediting shipments
78. The _____ is erratic shifts in orders up and down the supply chain.
A. demand forecast effect
B. supply forecast effect
C. bullwhip effect
D. inventory effect
E. customer coordination effect
79. The bullwhip effect comes from which of the following?
A. poor demand forecast
B. price fluctuations
C. order batching
D. rationing within the supply chain
E. all of the above
80. Which of the following is not responsible for the bullwhip effect?
A. poor demand forecast
B. price fluctuations
C. order batching
D. rationing within the supply chain
E. poor supply forecast
81. Which of the following is not a possible solution to supply chain problems?
A. vertical integration
B. building inventories
C. information sharing
D. horizontal integration
E. the bullwhip effect
82. When Wal-Mart sells a package of diapers, the company captures data on that sale at its point–of–
sale terminal and transmits that data to the company that makes the diapers. When it is necessary, the
diaper company restocks the diapers in that Wal-Mart store. This process is called:
A. supply chain management
B. demand chain management
C. vendor-managed inventory
D. enterprise resource planning inventory
E. just-in-time inventory
83. Which of the following is not a benefit of EDI?
A. data entry errors are minimized
B. length of messages is longer
C. messages are secured
D. fosters collaborative relationships
E. reduced cycle time
84. Which of the following is not a limitation of EDI?
A. it is inflexible
B. business processes may have to be restructured
C. it is expensive, but ongoing operating costs are low
D. multiple EDI standards exist
E. it is difficult to make quick changes
85. The primary goal of extranets is to do which of the following?
A. foster collaboration between and among business partners
B. to provide security for corporate intranets
C. to provide effective communications inside corporate intranets
D. to enable corporate employees to view inventory information for their companies
E. to enable business partners to better plan mergers and acquisitions
86. Extranets use _____ technology to make communication over the Internet more secure.
A. telepresence
B. anti-malware
C. virtual private network
D. voice-over IP
E. videoconferencing
87. The FedEx extranet that allows customers to track the status of a package is an example of which
type of extranet?
A. a company and its dealers, customers, and/or suppliers
B. an industry’s extranet
C. joint venture
D. B2B exchange
E. B2C exchange
88. _____ portals automate the business processes involved in purchasing products between a single
buyer and multiple suppliers.
A. Distribution
B. Corporate
C. Affiliate
D. Intranet
E. Procurement
89. Refer to Opening Case – Customer Relationship Management in the Internet Age: Which of the
following is false?
A. Millions of people review products, services and companies on the Internet, so one bad review
doesn’t have a big impact
B. Tweets containing certain words or brand names can be easily tracked down to the user
C. Once a comment or review is made it online, it go viral and be easily seen by millions of people
D. Social media like facebook, youtube and twitter can affect a company’s reputation both positively
and negatively
E. All Statements are true
90. Refer to Opening Case: Which of the following is true?
A. Organizations can ignore social media.
B. Organizations only need to be followed on Twitter to be effective.
C. An organization has to act on posts about itself on Twitter and Facebook.
D. Tweeter is the only way to monitor customer experiences
E. Organizations can put up a Facebook fan page and customers will flock to it.
91. Refer to IT’s About Business 11.2: Which of the following is true about the CRM system described
in the case:
A. It reduces the time customers spend on the phone
B. It cuts labor related costs
C. It helps predict frequent customer needs
D. It increases the security of the hotel
E. It reduces customer fallout.
92. Refer to IT’s About Business 11.5 – Campus Quilts Partners with UPS to Manage Its Supply Chain:
Which of the following statements is true?
A. Small businesses can learn how to manage the logistics from UPS
B. UPS is a customer facing CRM system
C. UPS is a customer touching CRM system
D. UPS can outsource logistics to more proficient companies
E. UPS handles the logistics for small companies without the resources and expertise
93. Refer to IT’s About Business 11.6: By creating manufacturing super centers, 3M was able to make
its supply chain more efficient and achieve the following benefits:
A. Reduce currency risk
B. Reduce shipping costs
C. Easier product customization
D. Reduced cycle time
E. All of the above
94. Refer to IT’s About Business 11.7: Airbus is able to track all the items in its supply chain using
A. GPS
B. Infrafired scanners
C. Weight sensors
D. RFID
E. All of the above
95. Refer to Closing Case – Cengage Uses Information Technology to Improve Warehouse
Operations: The updated warehouse management system has created the following benefits?
A. Increased worker productivity
B. Lower training time
C. Fewer errors
D. Faster cycle time
E. All of the above
Short Answer
96. Describe the various customer touch points in any organization. Which ones are more effective for
you as college students?
97. Describe the various customer-facing applications in an organization.
98. Describe the elements within sales force automation.
99. Contrast operational CRM systems and analytical CRM systems.
100. What are the problems associated with on-demand CRM?
101. Describe the reasons that so many companies think mobile CRM is the CRM system of the future.
102. Discuss the benefits of voice directed picking systems.
103. Describe supply chain visibility and explain why it is important to an organization.
104. Describe inventory velocity and explain why it is important to an organization.
105. Describe the three flows along a supply chain.
106. Explain what “upstream” and “downstream” are within a supply chain.
107. Differentiate between the pull model and the push model.
108. Describe the various methods that companies use to solve problems along their supply chains.
109. What is the bullwhip effect?
110. Explain and contrast just–in-time inventory and vendor-managed inventory.
Essay Questions
111. Describe why the customer – vendor relationship has become more impersonal.
112. Explain why the concept of a customer relationship management system became necessary.
113. What is the rationale behind customer-touching applications? Explain four such applications.
114. Discuss the benefits and limitations of on-demand CRM systems.
115 What are the benefits of open-source CRM?
116. Describe the supply chain of your university. Be sure to include all three segments.
117. Describe vertical integration. How does this concept relate to supply chain management?
118. Define EDI and how it works.
119. Describe the three main types of extranets.
True or False
120. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya needs to decide on her CRM strategy before she can decide on her CRM systems.
Multiple Choice
121. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Which of the following customer touch points will give Haya the most information after her first
weekend of selling?
A. Communication she sends via smart phones.
B. She should build a web site before she begins to sell on campus.
C. She should send an Email to all students on campus.
D. She should put a flyer in every mail box on campus.
E. Actual physical interactions when customers visit her store
122. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Which of the following should Haya consider during her first month of operation?
A. A sales force automation system
B. A customer interaction center
C. Bundling
D. Campaign management
E. Purchasing profiles
123. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Which of the following should Haya focus on during her first month of operation?
A. Search/comparison capabilities on a web site
B. Personalized experiences to make a purchase on a web site
C. Customization of ties
D. FAQs
E. A loyalty program
124. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya begins collecting data about her customers by having them sign up for Promotional Emails
at her store. She collects their names and Email address on her form. How might she use the customer
data?
A. Target marketing campaigns
B. Cross-sell
C. Gain insights into her products
D. Perform customer profitability analysis
E. Marketing
125. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya begins to notice that her sports ties are selling really well. Which of the following should be
her next step?
A. Target marketing campaigns
B. Cross-sell
C. Insights into her products
D. Customer profitability analysis
E. Marketing
True or False
126. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
The supplier of Haya’s ties is downstream in her supply chain.
Multiple Choice
127. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Which of the following is true about Haya’s supply chain?
A. Haya’s supplier is downstream in her supply chain.
B. Haya’s customers are upstream in her supply chain.
C. If a customer returns a tie, that is known as reverse logistics.
D. Haya has no information flows.
E. Haya’s supplier is the only other link in her supply chain.
128. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the
following is true about Haya’s supply chain?
A. Haya is using a push model.
B. Haya is using a pull model.
C. Haya is experiencing the bull whip effect.
D. Haya has an accurate demand forecast.
E. None of the above are true.
129. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the
following is true about Haya’s supply chain?
A. Haya is using a just-in-time inventory system.
B. Haya is using a vendor-managed inventory.
C. Haya is building inventories.
D. Haya has vertical integration with her upstream supplier.
E. Haya is using a pull model.
130. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya knows she needs to manage her relationship with her supplier. Which of the following is
true?
A. Haya should invest in EDI software.
B. Haya can use the supplier’s intranet to order.
C. Haya should give the supplier access to her VPN.
D. Haya can use the supplier’s procurement portal to order.
E. Haya can use the supplier’s extranet to check on her order.
131. Haya noticed that college students needed to dress up for presentations but never seemed to
have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her
campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an
announcement on the school’s monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. She almost
instantly sold out of all the sport themed ties. She decides to approach each of the sports teams on
campus to see if they would be willing to buy ties “in bulk”. Which of the following is true about Haya’s
supply chain?
A. Haya is using a push model.
B. Haya is using a pull model.
C. Haya is experiencing the bull whip effect.
D. Haya has an accurate demand forecast.
E. None of the above are true.