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

Question 1

Distribution and delivery of products to retailers is part of the:

A) downstream portion of the supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) supplier's internal supply chain.
E) midstream portion of the supply chain.

Answer 1

A

Question 2

Extensive customization of enterprise software reduces the overall cost of implementation.

Answer 2

False

Question 3

Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business?

A) Configuration tables
B) Web services
C) Data dictionaries
D) Middleware
E) Groupware

Answer 3

A

Question 4

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/an:

A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
E) information system.

Question 5

Enterprise systems improve management decision making in all the following ways except:

A) providing up-to-the-minute data on sales, inventory and production.
B) providing more accurate sales and production forecasts.
C) improving forecasts of consumer behavior.
D) implementing standard definitions and formats worldwide.
E) determining the profitability of products.

Question 6

To achieve the maximum benefit of a new ERP system, Tasty Baking implemented an enterprise system by:

A) using only the pre-defined processes in the ERP software that matched its own processes.
B) retaining its legacy systems to operate as a backup to the new enterprise system.
C) customizing less than 5 percent of the enterprise system processes.
D) changing the ERP software as needed to match their own processes.
E) using a cloud-based version of the ERP.

Question 7

Identify and describe three major enterprise applications.

Question 8

Identify at least four benefits and four challenges of enterprise systems.

Question 9

What business processes are supported by enterprise systems? Give specific examples.

Question 10

An enterprise system can rewrite enterprise system software to support existing business processes.

Question 11

Which of the following provides 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?

A) Process management software
B) ERP systems
C) Groupware
D) CRM software
E) Supply chain management systems

Question 12

Which of the following refers to a company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them?

A) Supplier's internal supply chain
B) Logistics supply chain
C) Downstream portion of the supply chain
D) Upstream portion of the supply chain
E) On Contract suppliers chain

Question 13

Enterprise systems are built around thousands of predefined business processes.

Question 14

Enterprise software is built around thousands of predefined business processes that reflect:

A) government regulations.
B) industry benchmarks.
C) best practices.
D) cutting edge workflow analyses.
E) the firm's culture.

Question 15

In the supply chain, components or parts are referred to as:

A) upstream materials, organizations, and processes.
B) raw materials.
C) secondary products.
D) intermediate products.
E) downstream organizations and processes.

Question 16

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

A) Rewrite the software to support the way the company's business processes work.
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.
E) Select the functions of the system you wish to use.

Question 17

Coca-Cola implemented enterprise software from Oracle that enabled it to achieve all of the following except:

A) standardizing business processes worldwide.
B) improving its bargaining power with suppliers.
C) reacting faster to market changes.
D) reducing the number of employees.
E) reducing the cost of raw materials.

Question 18

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 support their existing business practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.
E) Enterprise systems provide firm-wide information to help managers make better decisions.

Question 19

From your reading of the chapter's opening case, Skullcandy chose enterprise resource planning software from which of the following ERP vendors?

A) Oracle
B) SAP
C) IBM
D) Microsoft
E) Infor Global Solutions

Question 20

You have been hired by Santori, Inc., a small company that imports and distributes an Italian sparkling water. The company is interested in what benefits an enterprise system would bring. Would an enterprise system be appropriate for this company? What steps would you take in determining this?

Question 21

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

A) execution
B) planning
C) optimization
D) management
E) touch point

Question 22

Uncertainties in the supply chain often lead to:

A) declines in production.
B) increases in inventory across all tiers.
C) strategic changes in production plans.
D) the bull whip effect.
E) a reduction in safety stocks.

Question 23

Which of the following enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product?

A) Supply chain demand system
B) Supply chain delivery system
C) Supply chain optimization system
D) Supply chain execution system
E) Supply chain planning system

Question 24

The bullwhip effect can be countered by:

A) globalization.
B) disintermediation.
C) implementing a CRM.
D) reducing information uncertainty.
E) product differentiation.

Question 25

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
E) streamlined

Question 26

A supply chain driven by forecasts of consumer demand follows a ________ model.

A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) optimized

Question 27

A supply chain driven by actual customer orders is called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) pull-based
E) market-driven

Question 28

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) Extranets

Question 29

The difference between push- and pull-based models is summarized by which of the following slogans?

A) Sell what we make, not make what we sell.
B) Push what we make, not pull what we make.
C) Make what we sell, not sell what we make.
D) Pull what we make, not push what we sell.
E) Make what we push, not push what we sell.

Question 30

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

A) development
B) cycle
C) fulfillment
D) service
E) actualization

Question 31

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.

A) network
B) bullwhip
C) ripple
D) whirlpool
E) diffraction

Question 32

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

A) raw materials
B) intermediate products
C) basic products
D) natural resources
E) nascent products

Question 33

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
E) Perfect information

Question 34

Supply chain execution systems provide all of the following functions except:

A) generating demand forecasts for products.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
E) managing the financial information involving all parties.

Question 35

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
E) Customer planning

Question 36

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
E) maintenance; development

Question 37

Supply chain planning systems perform all of the following functions except:

A) establish inventory levels for raw materials and finished goods.
B) identify the transportation mode to use for product delivery.
C) determine where to store finished goods.
D) determine how much product to manufacture in a given time period.
E) track the physical status of goods.

Question 38

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) improved delivery service.
E) increased inventory levels.

Question 39

Why isn't overstocking warehouses 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.
E) It lowers fill rate.

Question 40

Which of the following manages 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) Supply chain demand system
B) Supply chain delivery system
C) Supply chain planning system
D) Supply chain execution system
E) Supply chain optimization system

Question 41

Identify two classifications for supply chain software. For each classification, identify five capabilities.

Question 42

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

Question 43

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

Question 44

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

Question 45

The bullwhip effect leads to declining inventory costs across the entire supply chain.

Question 46

Supply chain management systems are a type of enterprise system.

Question 47

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

Question 48

Discuss the business value of supply chain management systems.

Question 49

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 typically purchase 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?

Question 50

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

Question 51

Total supply chain costs in some industries approach 75 percent of the total operating budget.

Question 52

Walmart's continuous replenishment system is an example of a ________ model.

A) push-based
B) pull-based
C) enterprise-based
D) supply chain optimization
E) forecast-based

Question 53

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 54

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) point of service

Question 55

What additional complexities are faced in global supply chains? How does the Internet help in managing global supply chains?

Question 56

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

Question 57

Firms in the supply chain develop safety stocks in order to increase the efficiency of their operations.

Question 58

Procter & Gamble (P&G) experienced a growth in its Pampers diapers inventory due to information distortions in the supply chain.

Question 59

From your reading of the LG Electronics case study, the company implemented JDA software solutions to solve all of the following problems except:

A) overtaxing of its logistics network.
B) lack of internal knowledge of the global business.
C) inability to optimize transportation carriers.
D) inability to forecast orders from retailers.
E) increased logistics visibility.

Question 60

Identify two supply chain models. Which is better?

Question 61

Selling a customer with a checking account a home improvement loan is an example of:

A) operational CRM.
B) direct marketing.
C) sales force automation.
D) cross-channel promotions.
E) cross-selling.

Question 62

All CRM packages contain modules for PRM and ERM.

Question 63

Major CRM products typically have all of the following service capabilities except:

A) customer satisfaction management.
B) returns management.
C) call center & help desk.
D) service analytics.
E) order management.

Question 64

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

A) E-mail
B) Website
C) Intranet
D) Retail store
E) Facebook

Question 65

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.
E) turnover percentage.

Question 66

Operational CRM applications include tools for all of the following except:

A) sales force automation.
B) call center support.
C) marketing automation.
D) customer service support.
E) calculating CLTV.

Question 67

________ 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.

A) Customer
B) SOA
C) Marketing
D) Complex
E) SFA

Question 68

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

A) Analytical
B) Employee
C) Operational
D) Partner
E) Next-generation

Question 69

________ software modules seek to enhance collaboration between a company and its selling partners.

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

Question 70

________ software modules deal with setting employee objectives, performance, and compensation.

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

Question 71

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) Customer lifetime value
C) Cost per lead
D) Cost per sale
E) Customer average value

Question 72

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.
E) human resources.

Question 73

Which of the following is an important capability for sales processes that is found in most SFA modules in major CRM software products?

A) Returns management
B) Lead management
C) Channel promotions management
D) Events management
E) Customer satisfaction management

Question 74

CRM systems help businesses achieve which of the following business objectives?

A) Automated accounting processes
B) Automated production forecasts
C) Faster time to market with new products and services
D) Enhanced supplier intimacy
E) Enhanced customer intimacy

Question 75

Major CRM application software vendors include Oracle, SAP, and Salesforce.com.

Question 76

Which of the following customer relationship management applications provides analysis of customer data?

A) Operational CRM
B) Analytical CRM
C) Operational SCM
D) Analytical SFA
E) Operational SFA

Question 77

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.

Question 78

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.

Question 79

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) organizing effective marketing campaigns.

Question 80

Which of the following tools is used to analyze customer buying patterns?

A) CLTV
B) Analytical CRM
C) Operational CRM
D) Demand planning
E) SFA