Deck 9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

Inefficiencies in a supply chain are primarily caused by inaccurate information.

Answer 3

True

Question 4

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

Question 5

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

Question 6

PRM provides a firm and its distributors trade information and distributes leads about customers.

Question 7

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

Question 8

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

Question 9

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.

Question 10

Major CRM application software vendors include Oracle and SAP.

Question 11

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

Question 12

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.

Question 13

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

Question 14

Cross-selling is the marketing of complementary products to customers.

Question 15

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

Question 16

All CRM packages contain modules for PRM and ERM.

Question 17

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

Question 18

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

Question 19

Firms can use social networking sites to improve their efficiency in customer service.

Question 20

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

Question 21

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.

Question 22

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.

Question 23

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.

Question 24

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.

Question 25

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) customer and supplier intimacy
B) operational excellence
C) survival
D) improved decision making

Question 26

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

Question 27

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.

Question 28

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

Question 29

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.

Question 30

Which of the following is not an example of the benefits enterprise systems provide to firms?

A) Products are shipped to stores more quickly.
B) When products are ordered, the manufacturing and logistics teams are notified immediately.
C) There is more accurate sales information for managers to analyze.
D) The cost of information systems falls, making the firm more productive.

Question 31

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

Question 32

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.

Question 33

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.

Question 34

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.

Question 35

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.

Question 36

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.

Question 37

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.

Question 38

Components or parts of finished products are referred to as

A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.

Question 39

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

Question 40

Which of the following is not one of the key challenges facing global supply chains?

A) geographical distances
B) increased costs
C) time zones
D) cultural differences

Question 41

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

Question 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) demand
B) delivery
C) planning
D) execution

Question 43

Which of the following would not be considered a contact point?

A) e-mail
B) Web site
C) Intranet
D) retail store

Question 44

________ 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

Question 45

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

Question 46

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.

Question 47

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.

Question 48

________ 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

Question 49

________ management is an important capability for customer service processes that is found in most major CRM software products.

A) Returns
B) Lead
C) Account
D) Events

Question 50

Which of the following is not a potential "switching cost"?

A) employee training
B) upgrading software
C) new hardware
D) new documentation

Question 51

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.

Question 52

A build-to-order supply-chain model is also called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based

Question 53

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.

Question 54

Which of the following is not one of the main challenges in implementing enterprise applications?

A) high cost of software
B) loss of ownership of data
C) complex to install and configure
D) dependence on third-party vendors

Question 55

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

A) SCM
B) SFA
C) ERM
D) PRM

Question 56

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.

Question 57

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.

Question 58

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.

Question 59

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

Question 60

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

Question 61

The bullwhip effect is countered by

A) globalization.
B) disintermediation.
C) implementing an SCM.
D) reducing information uncertainty.

Question 62

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

Question 63

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

Question 64

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

Question 65

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain ________ system.

Question 66

The total time it takes to complete a business process, from start to finish, is called its ________ time.

Question 67

________ systems are based on a suite of software models used to support business activities across the firm.

Question 68

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.

Question 69

Analyzing customer buying patterns is an example of

A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.

Question 70

Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers.

Question 71

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

Question 72

Which of the following is not an example of next-generation enterprise applications?

A) open-source solutions
B) social CRM
C) solutions incorporating SCM
D) solutions incorporating SOA

Question 73

Analytical CRM applications

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

Question 74

Operational CRM applications include tools for

A) identifying buying patterns.
B) calculating CLTV.
C) salesforce automation.
D) pinpointing unprofitable customers.

Question 75

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

Question 76

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

Question 77

Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad-hoc analysis, as part of the application.

Question 78

Using social networking tools to converse with customers is called ________.

Question 79

________ 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.

Question 80

Which of the following statements about enterprise applications is not true?

A) Enterprise applications require organizational learning.
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.