Question 1

Supply chains involve three main flows.Which of the following is not one of those main flows?
A)financial flow
B)resource flow
C)information flow
D)material or product flow

Accepted Answer

The answer of Supply chains involve three main flows.Which of...

Question 2

__________ 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.
A)Safety stock
B)Stockouts
C)Continuous replenishment
D)Bullwhip effect

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 to keep inventory levels optimized and reduces the risk of stockouts while avoiding the bullwhip effect that can occur with traditional inventory reordering methods.

Question 3

Attracting and acquiring new customers is estimated to costs banks roughly __________ per new customer.
A)$10
B)$25
C)$50
D)$100

Accepted Answer

According to a report by Javelin Strategy & Research, it costs an average of $100 for banks to acquire a new customer. This includes marketing, advertising, and other costs associated with attracting and onboarding new customers.

Question 4

There have been many CRM failures reported in the media.Major issues relating to CRM failures include each of the following except:
A)Customers rejecting loyalty programs or attempts to build loyalty.
B)Failure to identify and focus on specific business problems that the CRM can solve.
C)Lack of active senior management sponsorship.
D)Trying to automate a poorly defined business process in the CRM implementation.

Accepted Answer

The other three options are all major issues that can contribute to CRM failures, whereas A is not directly related to the implementation or use of a CRM system. While customers rejecting loyalty programs or attempts to build loyalty can certainly impact the success of a CRM strategy, it is not an issue that stems from the implementation itself.

Question 5

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.
A)customer-centric
B)product-centric
C)upselling
D)cross-selling

Accepted Answer

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

Question 6

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__________.
A)produce-to-stock
B)build-to-order
C)JIT
D)safety stock

Accepted Answer

The concept of an on-demand enterprise is based on the build-to-order approach, where manufacturing or service fulfillment operations are initiated only when an order is received, as opposed to the traditional produce-to-stock approach. Just-in-time (JIT) and safety stock are not directly related to the on-demand enterprise concept.

Question 7

Efficient,effective supply chains are fully dependent on SCM software,which depends on __________.
A)EFT
B)ERP
C)up-to-date and accurate data
D)RFID

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 8

Accounting,inventory management,and shipping are part of order fulfillment and referred to as __________ operations.
A)back-office
B)customer-facing
C)front-office
D)logistics

Accepted Answer

Accounting, inventory management, and shipping are all back-end operations that are not directly customer-facing. These tasks are essential to ensuring that the order fulfillment process runs smoothly, but they do not involve interaction with customers.

Question 9

The most common solution to supply chain uncertainties is to build inventories or __________ as insurance.
A)safety stock
B)stockouts
C)continuous replenishment
D)restocking

Accepted Answer

Building safety stock is a common solution to supply chain uncertainties as it acts as insurance against unexpected fluctuations in demand or delays in supply. It ensures that sufficient inventory is available to meet customer demands, even when there are disruptions in the supply chain. Stockouts would not be a solution to supply chain uncertainties as it would lead to lost sales and dissatisfied customers. Continuous replenishment and restocking are strategies for managing inventory, but they do not necessarily address supply chain uncertainties.

Question 10

__________ is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners.
A)B2B e-commerce
B)Continuous replenishment
C)Collaborative planning,forecasting,and replenishment (CPFR)
D)Vendor managed inventory (VMI)

Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR) is specifically designed for improving the ability to predict and coordinate with supply chain partners. The process involves sharing information and coordinating plans between customers and suppliers to enhance supply chain efficiency and reduce costs. B2B e-commerce, continuous replenishment, and vendor-managed inventory (VMI) are all related to supply chain management and may have some data-driven processes, but they are not specifically designed for predicting and coordinating with supply chain partners like CPFR.

Question 11

According to the loyalty effect,a five percent reduction in customer attrition can improve profits by as much as __________ percent.
A)5
B)10
C)15
D)20

Accepted Answer

The loyalty effect states that even a small reduction in customer attrition can have a significant impact on profits. Specifically, a five percent reduction in customer attrition can improve profits by as much as 20 percent. Therefore, the correct answer is D)20 percent.

Question 12

Which is not a characteristic of CRM?
A)CRM is an enterprisewide effort to acquire and retain profitable customers.
B)An objective of CRM is to retain all customers through excellent and personalized customer service and perks.
C)CRM focuses on building long-term,sustainable customer relationships for the purpose of increasing the company's profitability.
D)CRM is basically a simple idea,which is to treat different customers differently according to the current or potential value to the company.

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 13

Variability in demand in the supply chain is amplified as orders move up the supply chain.This phenomenon is called __________.
A)market shifts
B)the bullwhip effect
C)continuous replenishment
D)demand forecasting

Accepted Answer

The best choice is B, the bullwhip effect. The bullwhip effect refers to the amplification of variability in demand as information moves up the supply chain from retailers to manufacturers to suppliers. The effect is called the bullwhip effect because, similar to the way a small flick of a bullwhip results in a large cracking sound, small changes in consumer demand can result in large fluctuations in orders as they move up the supply chain. The other choices (A) market shifts, (C) continuous replenishment, and (D) demand forecasting, while all related to supply chain management, do not specifically address the phenomenon of the bullwhip effect.

Question 14

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.
A)RFID
B)collaborative planning,forecasting,and replenishment (CPFR)
C)vendor managed inventory (VMI)
D)electronic data interchange (EDI)

Accepted Answer

Electronic data interchange (EDI) is a communication standard that enables the electronic transfer of routine documents, such as purchase orders, invoices, and shipping notices, between business partners. It allows companies to exchange information electronically, reducing errors, processing time, and manual efforts. EDI is widely used in supply chain management to automate processes and improve efficiency.

Question 15

Products that are returned make up what is called the __________.
A)reverse supply chain
B)return logistics
C)backflow
D)reorder fulfillment

Accepted Answer

The answer of Products that are returned make up what...

Question 16

Knowledge management is an important enterprise system for each of the following reasons except:
A)Forrester Research and IBM estimated that up to 85 percent of a company's knowledge is not stored in databases.
B)Knowledge is dispersed in social media,e-mail,texts,intranets,and on individual computers and mobile devices.
C)Knowledge typically is highly structured and needs to be shared.
D)Knowledge is much more valuable than data and information,but it's more ephemeral.

Accepted Answer

This statement is incorrect. Knowledge is not always highly structured and may include unstructured and subjective information. The other options are all valid reasons for the importance of knowledge management.

Question 17

What is the purpose of frequent purchase programs offered by airlines,supermarkets,credit card issuers,retailers,casinos,and other companies?
A)To track customers for CRM purposes
B)To build customer loyalty to improve financial performance
C)To deter customer attrition
D)All of the above

Accepted Answer

Frequent purchase programs, such as loyalty programs, serve multiple purposes. They allow companies to track customer behavior for CRM purposes, build customer loyalty to improve financial performance, and deter customer attrition. Therefore, D, "all of the above," is the best choice.

Question 18

Supply chain collaboration can increase profit margins by as much as __________ percent for supply chain partners,which is a significant improvement.
A)3
B)6
C)9
D)12

Accepted Answer

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

Question 19

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 __________.
A)customer segmentation
B)payoff ratios
C)NPV
D)data mining

Accepted Answer

Data mining is the process of analyzing large amounts of data to identify patterns and relationships, which can then be used to make informed decisions. Harrah's uses data mining to analyze customer data and assign a value to each customer based on their spending habits and other factors. This allows Harrah's to tailor its rewards and marketing efforts to each customer, maximizing their revenue and customer satisfaction.

Question 20

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 __________.
A)EDI
B)ERP
C)CRM
D)SCM

Accepted Answer

Retaining valuable customers is a core function of Customer Relationship Management (CRM) systems. CRM strategies involve identifying, attracting and retaining high-value customers, and tailoring products and services to meet their specific needs. EDI (Electronic Data Interchange), ERP (Enterprise Resource Planning) and SCM (Supply Chain Management) are also important business technologies, but they are not directly related to customer retention.

Quiz 10: Enterprise Information Systems

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

__________ 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.

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

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

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.

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__________.

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

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

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

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

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

Which is not a characteristic of CRM?

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

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.

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

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

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

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

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 __________.

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 __________.