Question 1

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.

Accepted Answer

Total supply chain costs can indeed represent a significant portion of operating expenses for many businesses, ranging from around 50 to 75 percent of the total operating budget in certain industries.

Question 2

Wal-mart's strategy of continuous replenishment of inventory based on actual customer purchases is an example a pull-based SCM model.

Accepted Answer

This is correct, as a pull-based SCM model involves the supply chain responding to actual customer demand rather than pushing inventory based on forecasts or projections. Wal-mart's continuous replenishment system is designed to ensure that products are restocked based on what customers are actually buying, making it a good example of a pull-based model.

Question 3

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.

Accepted Answer

Analytical CRM indeed uses a customer data warehouse and tools to analyze customer data.

Question 4

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

Accepted Answer

In a pull-based model of SCM systems, production master schedules are based on actual customer demand, not just forecasts. This helps to reduce waste and inventory levels.

Question 5

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

Accepted Answer

Enterprise systems are large-scale software packages that provide centralized and integrated support for core business processes. Adopting an enterprise system requires an organization to restructure its operations and processes to align with the system's requirements. This means that significant changes must be made to the business's operations, structure, and culture, which can be a complex and challenging process.

Question 6

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

Accepted Answer

Supply chain execution systems are designed to manage the flow of products through the distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient way. Demand forecasting and developing sourcing and manufacturing plans are functions of supply chain planning systems, not execution systems.

Question 7

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

Accepted Answer

CRM software can analyze customer data and behaviors to identify high-value customers and provide personalized treatment to increase customer satisfaction and loyalty.

Question 8

Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes.

Accepted Answer

Implementing an enterprise application usually involves changes to existing business processes and may require organizational changes to effectively use the application.

Question 9

You would expect to find PRM and ERM modules in the most comprehensive CRM software packages.

Accepted Answer

PRM (Partner Relationship Management) and ERM (Enterprise Relationship Management) modules are advanced features that are typically included in high-end CRM software packages. These modules are designed to help organizations manage complex relationships with partners, suppliers, and other key stakeholders. Therefore, it is likely that the most comprehensive CRM software packages will offer these modules as part of their suite of tools.

Question 10

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

Accepted Answer

Numerous studies have shown that supply chain inefficiencies can result in significant financial losses for companies, often in the range of 10-25% of their operating costs. This includes things like excess inventory, transportation delays, production bottlenecks, and ineffective communication between partners in the supply chain. Addressing these inefficiencies can lead to major cost savings and improved profitability.

Question 11

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.

Accepted Answer

The bullwhip effect is a well-known phenomenon in supply chain management, where small variations in customer demand can cause major fluctuations in the orders placed by retailers, wholesalers, distributors, and manufacturers. This happens because each entity in the supply chain tries to anticipate future demand and add a safety stock to avoid stockouts, leading to over- or under-ordering of inventories. As a result, the signal amplifies as it moves upstream, creating a distortion of information about the real demand for a product.

Question 12

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

Accepted Answer

The answer of In a push-based model of SCM systems,...

Question 13

To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software.

Accepted Answer

This statement is true. Limiting customization and adapting processes to fit the software can reduce the cost and complexity of implementing an enterprise system.

Question 14

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

Accepted Answer

The answer of Safety stock acts as an inexpensive buffer...

Question 15

Enterprise systems are typically built around one or two major business workflows.

Accepted Answer

Enterprise systems are designed to integrate and manage a wide range of business processes and workflows across an organization, not just one or two.

Question 16

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

Accepted Answer

The upstream portion of the supply chain consists of the organizations and processes for sourcing, procuring, and receiving raw materials or other inputs. The downstream portion is responsible for distributing and delivering products to the final customers.

Question 17

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

Accepted Answer

Configuration tables are used to customize enterprise software to meet the specific needs of a company. These tables can be used to tailor various aspects of the software, such as user roles, workflows, and business rules, to match the specific requirements of the organization. With configuration tables, companies can make changes to the software without having to write custom code or modify the underlying system.

Question 18

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

Accepted Answer

These are indeed major CRM application software vendors.

Question 19

Cross-selling markets complementary products to customers.

Accepted Answer

Cross-selling involves promoting or offering complementary products to customers, so that they can enhance their overall experience and satisfaction with the brand. This strategy is often used in retail, e-commerce, banking, and other industries to increase revenue and customer loyalty.

Question 20

Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers.

Accepted Answer

Enterprise systems are designed primarily to allow communication and coordination within an organization, not just with external partners and suppliers.

Quiz 9: Achieving Operational Excellence and Customer Intimacy: