Question 1

Apple's iPhone and iPod are best examples of __________ business strategies because demand was so high that many customers were even willing to camp out on sidewalks to guarantee getting one on the day of their releases.

Accepted Answer

The answer of Apple's iPhone and iPod are best examples...

Question 2

__________ is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners.

Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR) is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners. It involves mutual sharing of information among trading partners to enhance efficiency and reduce costs in the supply chain. B2B e-commerce, continuous replenishment, and vendor managed inventory are supply chain management strategies, but not specifically focused on improving prediction and coordination with supply chain partners.

Question 3

What is the purpose of frequent purchase programs offered by airlines,supermarkets,credit card issuers,retailers,casinos,and other companies?

Accepted Answer

Frequent purchase programs offered by companies serve multiple purposes. It allows them to track customer behavior for CRM purposes, build customer loyalty, and deter customer attrition. By offering rewards, discounts and other incentives, companies can encourage customers to continue doing business with them, leading to improved financial performance.

Question 4

Accounting,inventory management,and shipping are part of order fulfillment and referred to as __________ operations.

Accepted Answer

Accounting, inventory management, and shipping are typically considered back-office operations as they are not directly customer-facing. Logistics refers more specifically to the transportation and delivery of goods, which is a component of order fulfillment but not inclusive of all the operations involved.

Question 5

The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received.This approach is referred to as__________.

Accepted Answer

The concept of an on-demand enterprise is based on the build-to-order approach, where products or services are manufactured or fulfilled only after an order is received from the customer. This allows companies to better align with customer demand and avoid overproduction and excess inventory. A produce-to-stock approach, on the other hand, involves producing goods in anticipation of demand, relying on forecasting and inventory management, and may result in production of goods that are not immediately needed. JIT (Just-In-Time) is a manufacturing philosophy that emphasizes continuous flow and minimal inventory, but it may or may not involve a build-to-order approach, depending on the specifics of the production process. Safety stock is additional inventory held in case of unexpected demand or supply chain disruptions, and is not directly related to the build-to-order approach.

Question 6

According to the loyalty effect,a five percent reduction in customer attrition can improve profits by as much as __________ percent.

Accepted Answer

According to the loyalty effect, a five percent reduction in customer attrition can improve profits by as much as 20 percent.

Question 7

__________ is a supply chain relationship in which a vendor continuously monitors the inventory of a retailer or distributor and automatically replenishes their inventory when levels hit the re-order point.

Accepted Answer

Continuous replenishment is a supply chain relationship in which a vendor continuously monitors the inventory of a retailer or distributor and automatically replenishes their inventory when levels hit the re-order point. This helps in minimizing stockouts and ensures that adequate inventory levels are maintained without excess inventory.

Question 8

Supply chains involve three main flows.Which of the following is not one of those main flows?

Accepted Answer

The three main flows in supply chains are financial flow, information flow, and material or product flow. Resource flow is not considered one of the main flows.

Question 9

Attracting and acquiring new customers is estimated to costs banks roughly __________ per new customer.

Accepted Answer

According to a study by Bain & Company, attracting and acquiring new customers can cost banks approximately $100 per new customer.

Question 10

Knowledge management is an important enterprise system for each of the following reasons except:

Accepted Answer

This statement is incorrect as knowledge is not always highly structured and may require different forms of sharing. The other options are valid reasons for the importance of knowledge management.

Question 11

Harrah's Entertainment Inc.treats its customers differently.The more a customer spends in a casino,the more rewards the customer gets.Harrah's analyses customer data and assigns a value to each customer based on the results of __________.

Accepted Answer

Harrah's uses data mining to analyze customer data and assign values to customers based on their spending habits. Customer segmentation, payoff ratios, and net present value (NPV) are not directly related to this approach.

Question 12

Variability in demand in the supply chain is amplified as orders move up the supply chain.This phenomenon is called __________.

Accepted Answer

The bullwhip effect refers to the phenomenon where small fluctuations in demand at the customer end of the supply chain can lead to bigger and bigger fluctuations further up the supply chain. This happens because each layer of the supply chain amplifies the fluctuations by ordering more than they need to compensate for uncertainty in demand. This can result in unnecessarily high inventory costs, poor customer service, and inefficient operations.

Question 13

Efficient,effective supply chains are fully dependent on SCM software,which depends on __________.

Accepted Answer

Efficient and effective supply chains rely on up-to-date and accurate data to make informed decisions, optimize operations, and respond to changes in demand or supply conditions. SCM software requires accurate data to function effectively.

Question 14

Retaining customers that generate revenues in excess of the costs of customer service,returns,promotional items,and the like are critical;and are the underlying reason for __________.

Accepted Answer

CRM, or customer relationship management, is a strategy focused on building and maintaining long-term customer relationships through personalized interactions and targeted marketing efforts. By retaining high-value customers, businesses can maximize profits and reduce customer acquisition costs.

Question 15

The most common solution to supply chain uncertainties is to build inventories or __________ as insurance.

Accepted Answer

Building safety stock allows for extra inventory to be held in case of unexpected demand or supply chain disruptions. It helps to mitigate the impact of uncertainties on the supply chain by providing a buffer to cover any unexpected events. Stockouts (B) are not a solution to uncertainties as they are a result of inadequate inventory management. Continuous replenishment (C) and restocking (D) are strategies for maintaining inventory levels, but do not directly address supply chain uncertainties.

Question 16

Which is not a characteristic of CRM?

Accepted Answer

This statement is not entirely true as the objective of CRM is not necessarily to retain all customers, but rather to identify and focus on the most profitable customers. In some cases, it may not make financial sense to retain certain customers who may be costing the company more than they are worth.

Question 17

There have been many CRM failures reported in the media.Major issues relating to CRM failures include each of the following except:

Accepted Answer

While customers rejecting loyalty programs or attempts to build loyalty can certainly be a problem for a company's CRM strategy, it is not a major issue that is typically cited as a cause of CRM failures. The other three options listed are more commonly cited as key factors in CRM failures.

Question 18

Products that are returned make up what is called the __________.

Accepted Answer

The reverse supply chain refers to the process of moving products from their final destination back to the manufacturer or a designated location for return, repair, remanufacture, recycling, or disposal.

Question 19

Data transfer between companies is done using __________,which is a communication standard that enables the electronic transfer of routine documents,such as purchase orders,between business partners.

Accepted Answer

Electronic data interchange (EDI) is a communication standard that enables the electronic transfer of routine documents, such as purchase orders, between business partners. RFID, collaborative planning, forecasting, and replenishment (CPFR), and vendor managed inventory (VMI) are also methods used for supply chain management, but they are not specifically designed for data transfer between companies.

Question 20

Supply chain collaboration can increase profit margins by as much as __________ percent for supply chain partners,which is a significant improvement.

Accepted Answer

The answer of Supply chain collaboration can increase profit margins...

Quiz 10: Enterprise Information Systems