Exam
Name___________________________________
1. Firms can use social networking sites to improve their efficiency in customer service.
2. PRM provides a firm and its distributors trade information and distributes leads about customers.
3. Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for
communicating with customers and suppliers.
4. The upstream portion of the supply chain consists of the organizations and processes for distributing and
delivering products to the final customers.
5. Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.
6. Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
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.
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.
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.
10. Inefficiencies in a supply chain are primarily caused by inaccurate information.
11. In a push–based model of SCM systems, actual customer orders or purchases trigger events in the supply
chain.
12. In a pull–based model of SCM systems, production master schedules are based on forecasts of demand for
products.
13. Dell Inc. is an example of a push–based model.
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.
15.
All CRM packages contain modules for PRM and ERM.
16. Major CRM application software vendors include Oracle and SAP.
17. Cross–selling is the marketing of complementary products to customers.
18. CRM software can help organizations identify high–value customers for preferential treatments.
19. Analytical CRM uses tools to analyze customer data collected from the firm’s customer touch points and
from other sources.
20. Enterprise systems require fundamental changes in the way the business operates.
21. From your reading of the chapter’s opening case, NVIDIA implemented new information systems in order to
achieve which of the following business objectives?
A) operational excellence
B) improved decision making
C) customer and supplier intimacy
D) survival
22. Which of the following is not an example of the benefits enterprise systems provide to firms?
A) The cost of information systems falls, making the firm more productive.
B) There is more accurate sales information for managers to analyze.
C) When products are ordered, the manufacturing and logistics teams are notified immediately.
D) Products are shipped to stores more quickly.
23. Enterprise software is built around thousands of predefined business processes that reflect
A) cutting edge workflow analyses.
B) industry goals.
C) best practices.
D) the firm’s organization.
24. 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 software includes analytical tools to evaluate overall organizational performance.
C) Enterprise software is expressly built to allow companies to mimic their unique business practices.
D) Enterprise system data have standardized definitions and formats that are accepted by the entire
organization.
25. You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the
first step you should take?
A) Map the software’s business processes to the company’s business processes.
B) Map the company’s business processes to the software‘s business processes.
C) Select the business processes you wish to automate.
D) Select the functions of the system you wish to use.
26. When tailoring a particular aspect of a system to the way a company does business, enterprise software can
provide the company with
A) middleware.
B) configuration tables.
C) Web services.
D) data dictionaries.
27. In order to achieve maximum benefit from an enterprise software package, a business
A) uses only the processes in the software that match its own processes.
B) changes the way it works to match the software‘s business processes.
C) selects only the software that best matches its existing business processes.
D) customizes the software to match all of its business processes.
28. Supply chain complexity and scale increases when firms
A) move to globalization.
B) manage the procurement, manufacturing, and distribution functions themselves.
C) modify their existing workflows to comply with supply–chain management systems.
D) produce products and services that coordinate with hundreds or more firms and suppliers.
29. 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) marketing channel.
B) supply chain.
C) value chain.
D) distribution channel.
30. Components or parts of finished products are referred to as
A) upstream materials.
B) secondary products.
C) raw materials.
D) intermediate products.
31. A company’s suppliers, supplier’s suppliers, and the processes for managing relationships with them is the
A) external supply chain.
B) upstream portion of the supply chain.
C) downstream portion of the supply chain.
D) supplier’s internal supply chain.
32. A company’s organizations and processes for distributing and delivering products to the final customers is
the
A) downstream portion of the supply chain.
B) external supply chain.
C) supplier’s internal supply chain.
D) upstream portion of the supply chain.
33. Uncertainties arise in any supply chain because of
A) inefficient or inaccurate MIS.
B) poor integration between systems of suppliers, manufacturers, and distributors.
C) unforeseeable events.
D) inaccurate or untimely information.
34. Why is overstocking warehouses not an effective solution for a problem of low availability?
A) It increases inventory costs.
B) It does not speed product time to market.
C) It is an inefficient use of raw materials.
D) It increases sales costs.
35. Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply
chain?
A) continuous replenishment
B) just–in–time strategies
C) demand planning
D) safety stock
36. 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) bullwhip
C) frictionless
D) safety–stock
37. Which of the following is not one of the key challenges facing global supply chains?
A) time zones
B) cultural differences
C) increased costs
D) geographical distances
38. Supply chain software can be classified as either supply chain ________ systems or supply chain ________
systems.
A) push; pull
B) upstream; downstream
C) demand; continual
D) planning; execution
39. 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) execution
B) demand
C) planning
D) delivery
40. Supply chain planning systems
A) identify the transportation mode to use for product delivery.
B) track the financial information involving all parties.
C) track the physical status of goods.
D) track the status of orders.
41. Which supply chain planning function determines how much product is needed to satisfy all customer
demands?
A) demand planning
B) replenishment planning
C) distribution management
D) order planning
42. 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) planning
B) execution
C) demand
D) delivery
43. Capabilities of supply chain execution systems would not include
A) tracking the flow of finished goods.
B) managing warehouse operations.
C) identifying the optimal transportation mode.
D) managing materials.
44. Which of the following is not one of the main challenges in implementing enterprise applications?
A) complex to install and configure
B) dependence on third–party vendors
C) high cost of software
D) loss of ownership of data
45. A supply chain driven by actual customer orders or purchases follows a ________ model.
A) build–to–stock
B) pull–based model
C) push–based
D) replenishment–driven
46. A build–to–order supply–chain model is also called a ________ model.
A) supply–based
B) demand–driven
C) push–based
D) replenishment–driven
47. Which of the following is not a potential “switching cost”?
A) new documentation
B) new hardware
C) employee training
D) upgrading software
48. The business value of an effective supply chain management system includes all of the following except
A) supply matched to demand.
B) cost reduction.
C) increased inventory levels.
D) faster time to market.
49. A ________ is a method of interaction with a customer, such as telephone or customer service desk.
A) client channel
B) point of presence
C) sales point
D) touch point
50. Which of the following would not be considered a contact point?
A) Web site
B) e–mail
C) retail store
D) Intranet
51. ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a
company and its selling partners.
A) PRM
B) ERM
C) SCM
D) SFA
52.
________ modules deal with issues such as setting objectives, employee performance management, and
performance–based compensation.
A) ERM
B) PRM
C) SCM
D) SFA
53. Customer relationship management systems typically provide software and online tools for sales, customer
service, and
A) advertising.
B) account management.
C) public relations.
D) marketing.
54. SFA modules in CRM systems would provide tools for
A) identifying profitable and unprofitable customers.
B) assigning and managing customer service requests.
C) capturing prospect and customer data.
D) managing sales prospect and contact information.
55. ________ 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) PRM
B) ERM
C) Enterprise
D) ERP
56. Customer service modules in CRM systems provide tools for
A) capturing prospect and customer data.
B) managing sales prospect and contact information.
C) identifying profitable and unprofitable customers.
D) assigning and managing customer service requests.
57. Marketing modules in CRM systems would provide tools for
A) identifying profitable and unprofitable customers.
B) managing sales prospect and contact information.
C) assigning and managing customer service requests.
D) capturing prospect and customer data.
58. Selling a customer with a checking account a home improvement loan is an example of
A) direct marketing.
B) cross–selling.
C) cross–channel promotions.
D) operational CRM.