Deck 9: Enterprise Applications to Manage Supply Chains and Respond to Customers

Question 1

If the enterprise software does not support the way the organization does business,companies can rewrite some of the software to support the way their business processes work.

Answer 1

True

Question 2

Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise.

Answer 2

True

Question 3

Inefficiencies in the supply chain,such as parts shortages,underutilized plant capacity,excessive finished goods inventory,or high transportation costs,are caused by inaccurate or untimely information.

Answer 3

True

Question 4

Firms use intranets to improve coordination among their external supply chain processes.

Question 5

Global supply chains typically span smaller geographic distances and time differences than domestic supply chains.

Question 6

Firms use extranets to improve coordination among their internal supply chain processes.

Question 7

If a manufacturer had perfect information about exactly how many units of product customers wanted,when they wanted them,and when they could be produced,it would be possible to implement a highly efficient just-in-time strategy.

Question 8

Enterprise systems help customers respond rapidly to a firm's requests for information or products.

Question 9

One recurring problem in supply chain management is the bullwhip effect.

Question 10

Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain.

Question 11

One of the most important-and complex-supply chain planning functions is demand planning,which determines how much product a business needs to make to satisfy all of its customers' demands.

Question 12

Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with internal supply chain processes.

Question 13

There are versions of enterprise software that can be obtained through software service providers over the Web.

Question 14

Enterprise software does not include analytical tools for using data captured by the system to evaluate overall organizational performance.

Question 15

The downstream portion of the supply chain includes the company's suppliers,the suppliers' suppliers,and the processes for managing relationships with them.

Question 16

A firm's CRM is 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.

Question 17

Enterprise software is built around thousands of predefined business processes that reflect best practices.

Question 18

There are versions of enterprise software packages designed for small businesses.

Question 19

Enterprise systems provide value both by decreasing operational efficiency and by providing firm-wide information to help managers make better decisions.

Question 20

Supply chain execution systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most inefficient manner.

Question 21

Cross-selling markets complementary products to customers.

Question 22

Partner relationship management (PRM)uses many of the same data,tools,and systems as customer relationship management to enhance collaboration between a company and its selling partners.

Question 23

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 24

Enterprise systems use a client/server architecture and have not yet been redesigned to take advantage of the Web.

Question 25

Supply chain management may need to reflect foreign government regulations and cultural differences.

Question 26

Enterprise systems can improve management reporting and decision making.

Question 27

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

Question 28

All CRM packages contain modules for PRM and ERM.

Question 29

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 30

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

Question 31

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

Question 32

Many,especially smaller companies,still share product information over the phone,via e-mail,or through faxes.

Question 33

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 34

Major CRM application software vendors include Siebel Systems,PeopleSoft,SAP,and Salesforce.com.

Question 35

A touch point (also known as a contact point)is a method of interaction with the customer,such as telephone,e-mail,customer service desk,conventional mail,Web site,wireless device,or retail store.

Question 36

Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business

Question 37

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

Question 38

In addition to reducing costs,supply chain management systems help increase sales.

Question 39

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

Question 40

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 41

The difference between push- and pull-based models is summarized by the slogan "Make what we sell,not sell what we make."

Question 42

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

Question 43

The total cost for an average large system implementation based on SAP or Oracle software,including software,database tools,consulting fees,personnel costs,training,and perhaps hardware costs,runs over $12 000.

Question 44

Canada Post delivers more than one piece of mail per person in Canada five days a week.

Question 45

Wayne is looking at the business processes that are critical in his firm.The processes include procurement,inventory management,purchasing,shipping,production planning,production scheduling,material requirements planning,quality control,distribution,transportation execution,and plant and equipment maintenance.Which of the business processes supported by enterprise software is most critical for this firm?

A)financial and accounting processes
B)human resources processes
C)manufacturing and production processes
D)sales and marketing processes processes

Question 46

John is looking at the business processes that are critical in his firm.The processes include general ledger,accounts payable,accounts receivable,fixed assets,cash management and forecasting,product-cost accounting,cost-centre accounting,asset accounting,tax accounting,credit management,and financial reporting.Which of the business processes supported by enterprise software is most critical for this firm?

A)financial and accounting processes
B)human resources processes
C)manufacturing and production processes
D)sales and marketing processes processes

Question 47

It might take a large Fortune 500 company several weeks to complete a large-scale implementation of an enterprise system or a system for SCM or CRM.

Question 48

Bobby is looking at the business processes that are critical in his firm.The processes include personnel administration,time accounting,payroll,personnel planning and development,benefits accounting,applicant tracking,time management,compensation,workforce planning,performance management,and travel expense reporting.Which of the business processes supported by enterprise software is most critical for this firm?

A)financial and accounting processes
B)human resources processes
C)manufacturing and production processes
D)sales and marketing processes processes

Question 49

Mary's job consists of the organizations and processes for distributing and delivering products to the final customers.She works for a manufacturing plant.Which portion of the supply chain does she deal with?

A)upstream portion
B)downstream portion
C)internal supply chain
D)bullwhip effect

Question 50

Companies are realizing that their only enduring competitive strength may be their relationships with customers.

Question 51

Around the globe,companies are increasingly becoming more connected,both internally and with other companies.

Question 52

After implementing enterprise software from Oracle,Alcoa eliminated many redundant processes and systems.

Question 53

Enterprise systems provide value both by increasing ________ efficiency and by providing firm-wide information to help managers make better decisions.

A)technical
B)operational
C)accounting
D)financial

Question 54

Employee relationship management software provides a single point for users to manage and evaluate marketing campaigns across multiple channels,including e-mail,direct mail,telephone,the Web,and wireless messages.

Question 55

Helen's job is to deal with the company's suppliers,the suppliers' suppliers,and the processes for managing relationships with them.She is a purchaser for a department store chain.Which portion of the supply chain does she deal with?

A)upstream portion
B)downstream portion
C)internal supply chain
D)bullwhip effect

Question 56

It can cost six times more to sell to a new customer than to an existing customer.

Question 57

Donald is looking at the business processes that are critical in his firm.The processes include order processing,quotations,contracts,product configuration,pricing,billing,credit checking,incentive and commission management,and sales planning.Which of the business processes supported by enterprise software is most critical for this firm?

A)financial and accounting processes
B)human resources processes
C)manufacturing and production processes
D)sales and marketing processes processes

Question 58

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

Question 59

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

Question 60

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

Question 61

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 62

Supply chain complexity and scale

A)affect both very small companies and large,global corporations.
B)were difficult to address before the Internet.
C)result when firms produce complex products and services.
D)result when firms implement full-scale supply-chain management systems.

Question 63

Components or parts of finished products are referred to as

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

Question 64

Supply chain management systems require ________ organizations to share information and business processes.

A)zero
B)multiple
C)manufacturing
D)retail

Question 65

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)project workbooks.
C)data dictionaries.
D)middleware.

Question 66

Betty is using a new system at work.She finds that it really has improved her effectiveness in using data,tools,and systems to enhance collaboration between a company and its selling partners.Betty is using what type of module?

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

Question 67

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 68

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 69

From your reading of the Allen Candy Company case study,the firm implemented new information systems in order to achieve which of the main six business objectives?

A)customer and supplier intimacy
B)new products,services,and business models
C)improved decision making
D)growth

Question 70

In addition to reducing costs,supply chain management systems help increase ________.

A)expenses
B)sales
C)inventory
D)taxes

Question 71

Minor fluctuations in retail sales for a product can create ________ inventory for distributors,manufacturers,and suppliers.

A)finished goods
B)raw material
C)less
D)excess

Question 72

From your reading of the Allen Company case study,what enabled the firm to take maximum advantage of the new enterprise software's capabilities?

A)willingness to normalize data
B)custom reporting and workflow features
C)limiting changes to the software
D)enforcing strict project management standards

Question 73

The ________ is tamed by reducing uncertainties about demand and supply when all members of the supply chain have accurate and up-to-date information.

A)upstream portion
B)downstream portion
C)internal supply chain
D)bullwhip effect

Question 74

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 75

Susan is using a new system at work.She finds that it really has improved her effectiveness in dealing with employee issues such as setting objectives,employee performance management,performance-based compensation,and employee training.Susan is using what type of module?

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

Question 76

A suite of integrated software modules for finance and accounting,human resources,manufacturing and production,and sales and marketing that allows data to be used by multiple functions and business processes best describes

A)process management software.
B)ERP systems.
C)groupware.
D)application software.

Question 77

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 78

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 79

Linda's job consists of processes for transforming materials,components,and services furnished by their suppliers into finished products or intermediate products (components or parts)for their customers and for managing materials and inventory.She works for a manufacturing plant.Which portion of the supply chain does she deal with?

A)upstream portion
B)downstream portion
C)internal supply chain
D)bullwhip effect

Question 80

________ software is built around thousands of predefined business processes from all functional areas.

A)Process management
B)PRM
C)Enterprise
D)CRM