Deck 8: Strengthening Business-To-Business Relationships Via Supply Chain and Customer Relationship Management

Question 1

Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine.Fenfluramine was initially marketed by American Home Products.It was shown to cause potentially fatal pulmonary hypertension and heart valve problems.This eventually led to the withdrawal of the product and legal damages of over $13 billion.This is an example of ________.

A) a product recall
B) lean manufacturing
C) production control
D) the bullwhip effect
E) a green business

Answer 1

A

Question 2

MaXoSteel Inc.has been supplying steel to Agis Corp.,a well-known car manufacturer,for the past three years.Concerned employees at MaXoSteel can directly access Agis' inventory and sales information via electronic data interchange.This allows MaXoSteel to monitor Agis' inventory levels on a real-time basis.The system has worked well for both companies so far and there has never been any delay in the supply of steel.Which of the following steps,if taken by Agis,would most strengthen its supply chain strategy?

A) Agis Corp.'s management decides to take strong measures for increasing its safety stock of all raw materials.
B) Agis takes measures to add wholesalers and retailers into its supply chain.
C) Agis wants to purchase MaxSteel in order to reduce dependency.
D) Agis takes measures to directly contact the consumers by removing wholesalers and retailers from its supply chain.
E) Agis takes measures to ensure that the information shared with MaxSteel is not shared with outsiders.

Answer 2

E

Question 3

Supply chain planning begins with ________.

A) product demand planning and forecasting
B) product distribution planning and scheduling
C) production scheduling
D) inventory planning
E) safety stock planning

Answer 3

A

Question 4

Which of the following is the main objective of information systems that focuses on improving supply chains?

A) discouraging vendor-managed inventory systems
B) accelerating product development and innovation
C) discouraging sustainable production processes
D) decentralizing the organizations
E) encouraging the bullwhip effect

Question 5

Which of the following statements about a just-in-time strategy is true?

A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.
B) Companies using this strategy allow suppliers to manage the manufacturer's inventory levels based on pre-established service levels.
C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
D) Companies using this strategy try to optimize their ordering quantities such that parts or raw materials arrive just when they are needed for production.
E) A manufacturer or retailer using this strategy shares real-time sales data with suppliers who maintain inventory levels based on preestablished agreements.

Question 6

Which of the following statements about vendor-managed inventory (VMI)is true?

A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed.
C) Companies using this strategy try to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.

Question 7

Demand planning and estimating leads to the development of the overall ________.

A) sourcing plan
B) demand paging
C) production plan
D) demand forecast
E) safety stock plan

Question 8

Distribution planning leads to the development of the overall ________ plan.

A) production
B) safety stock
C) manufacturing
D) transportation
E) security

Question 9

Analytical tools are used to optimally utilize materials,equipment,and labor during the ________ process of supply chain planning.

A) demand forecasting
B) production scheduling
C) distribution planning
D) inventory planning
E) safety stock scheduling

Question 10

One major problem affecting supply chains are ripple effects referred to as the ________ effect.

A) backflush
B) multiplier
C) bullwhip
D) incremental
E) stockwhip

Question 11

The key use of the order promising module of supply chain management is to ________.

A) work with partners across the supply network to improve accuracy of demand forecasts, reduce inventory buffers, and improve customer service
B) monitor key performance indicators to assess performance across the supply chain
C) manage logistics between company locations or from company to customers, taking into account transportation modes and constraints
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times

Question 12

Production scheduling ________.

A) focuses on the coordination of all activities needed to create the product or service
B) focuses on delivering products or services to consumers as well as warehousing
C) leads to the development of a sourcing plan
D) leads to the development of inventory estimates
E) provides immediate communication and feedback to and from customers

Question 13

________ is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels.

A) Just-in-case manufacturing
B) Scan-based trading
C) Vendor-managed inventory
D) Lean manufacturing
E) Just-in-time manufacturing

Question 14

The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer.

A) supply warehouse
B) supply chain
C) procurement
D) demand chain
E) value network

Question 15

________ involves the development of various resource plans to support the efficient and effective production of goods and services.

A) Requirement planning
B) Supply chain analytics
C) Requirement execution
D) Supply chain networking
E) Supply chain planning

Question 16

La Belle Inc.introduced a new line of accessories for teenage girls the last season.Following its immense popularity with the targeted group,the company anticipated high sales in the current season and ordered raw materials accordingly..However,the success of the new line turned out to be a fad as the teens soon turned to other products offered by competing brands and La Belle's sales declined.This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales.This is an example of ________.

A) the multiplier effect
B) hindsight bias
C) product recall
D) the bullwhip effect
E) safety stock planning

Question 17

________ planning focuses on delivering products or services to consumers as well as warehousing,delivering,invoicing,and payment collection.

A) Product demand
B) Production
C) Distribution
D) Safety stock
E) Inventory

Question 18

The key use of the manufacturing execution module of supply chain management is to ________.

A) forecast and plan anticipated demand for products
B) support production processes, taking into account capacity and material constraints
C) ensure that the materials required for production are available where needed and when needed
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) support receiving, storing, and picking of goods in a warehouse

Question 19

Computer maker Dell realized the problems with keeping large inventories,especially because of the fast rate of obsolescence of electronics components.Dell now keeps only about two hours of inventory in its factories.The company is most likely using a ________ system.

A) scan-based trading
B) customer-managed inventory
C) just-in-time inventory management
D) vendor-managed inventory
E) just-in-case inventory management

Question 20

Which of the following is the key use of the distribution planning module of supply chain management?

A) to ensure that the materials required for production are available when needed
B) to forecast and plan anticipated demand for products
C) to optimize the allocation of available supply to meet demand
D) to support production processes taking into account capacity and material constraints
E) to support receiving, storing, and picking of goods in a warehouse

Question 21

Lee's department store uses the every day low prices strategy.This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and passes these savings on to consumers.Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods.This distribution network allowed them to cut out external suppliers and middlemen thereby driving down business costs further.This implies that the competitive strategy used by this store would most likely focus on ________.

A) supply chain efficiency
B) supply chain visibility
C) supply chain effectiveness
D) supply chain sustainability
E) supply chain logistics

Question 22

________ includes tags for data such as annual and quarterly reports,Securities and Exchange Commission filings,general ledger information,and net revenue and accounting schedules.

A) Extensible Application Markup Language
B) Extensible Business Reporting Language
C) Extensible Access Control Markup Language
D) Enterprise Mashup Markup Language
E) Extensible Rights Markup Language

Question 23

________ can be used just about anywhere a unique identification system might be needed,such as on clothing,pets,cars,keys,missiles,or manufactured parts.

A) Hypertext Markup Language (HTML) tags
B) Radio frequency identification (RFID) tags
C) Spintronics
D) XML tags
E) High capacity color barcodes

Question 24

The ability to track products as they move through the supply chain and to foresee external events is a characteristic of ________.

A) supply chain visibility
B) supply chain sustainability
C) supply chain analytics
D) supply network collaboration
E) supply chain risk management

Question 25

Which of the following statements is true about information flow,a key element of supply chain execution?

A) A key element of information flow is to foresee external events.
B) Information can only flow up the supply chain.
C) It refers to the use of key performance indicators to monitor performance of the entire supply chain.
D) The key element to the information flow is the complete removal of paper documents.
E) It refers primarily to the movement of financial assets throughout the supply chain.

Question 26

________ refers to the use of key performance indicators to monitor performance of the entire supply chain,including sourcing,planning,production,and distribution.

A) Supply chain integration
B) Supply chain optimization
C) Supply chain strategy
D) Supply chain visibility
E) Supply chain analytics

Question 27

Which of the following statements is true about product flow,a key element of supply chain execution?

A) It refers to the ability of tracking products as they move through the supply chain.
B) It refers to the movement of information along the supply chain, such as order processing and delivery status updates.
C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer.
D) It tracks a one-way flow of products from producers to consumers but cannot process returns or customer refunds.
E) It refers primarily to the movement of financial assets throughout the supply chain.

Question 28

________ is the use of electromagnetic energy to transmit information between a reader (transceiver)and a processing device.

A) Radio frequency identification
B) High capacity color barcoding
C) Interferometric modulator display
D) Photonic computing
E) Electronic product coding

Question 29

________ is an XML-based specification for publishing financial information.

A) Extensible Rights Markup Language
B) Extensible Application Markup Language
C) Extensible Access Control Markup Language
D) Extensible Business Reporting Language
E) Enterprise Mashup Markup Language

Question 30

Which of the following is an example of supply chain efficiency?

A) Aubrey Express, a consultancy, focuses on providing superior service to its clients.
B) Fyroff, an automobile manufacturing company, has high spare parts availability.
C) Glassico, a soft drink manufacturing company, introduces a new soft drink flavor.
D) Timeplz, a watch manufacturing company, positions itself as a prestige brand.
E) Xenthix, an electronics company,sources its raw materials in ways that keep its costs low.

Question 31

Supply chain execution ________.

A) involves the development of a sourcing plan
B) refers to the use of key performance indicators to monitor production
C) involves the management of product flow, information flow, and financial flow
D) refers to the ability to track products as they move through the supply chain
E) involves the development of demand forecast

Question 32

Comptel,a world leader in computer hardware,differentiates itself from its competitors by providing excellent after-sales service.This implies that the competitive strategy used by Comptel would most likely focus on ________.

A) supply chain analytics
B) supply chain visibility
C) supply chain effectiveness
D) supply network collaboration
E) supply chain efficiency

Question 33

________ is the extent to which a company's supply chain is focusing on maximizing customer service with lesser focus on procurement,production,and transportation costs.

A) Supply chain visibility
B) Supply chain effectiveness
C) Supply chain analytics
D) Supply chain efficiency
E) Supply network collaboration

Question 34

________ is a standard for exchanging structured information over the Web.

A) Extensible Markup Language
B) JavaScript
C) MySQL
D) Active Server Pages
E) Unified Modeling Language

Question 35

In the context of business-to-business market places,the term ________ refer to the markets that comprise of firms operating within a certain industry sector.

A) market segmentations
B) share markets
C) market paradigms
D) horizontal markets
E) vertical markets

Question 36

________ is the extent to which a company's supply chain is focusing on minimizing procurement,production,and transportation costs.

A) Supply chain analytics
B) Supply chain effectiveness
C) Supply network collaboration
D) Supply chain efficiency
E) Supply chain visibility

Question 37

Inventory and safety stock planning ________.

A) leads to the development of the overall demand forecast
B) focuses on the coordination of all activities needed to create a product or service
C) leads to the development of a sourcing plan
D) focuses on delivering products or services to consumers as well as warehousing
E) leads to the development of a transportation schedule

Question 38

A(n)________ is a label that is inserted into an XML document in order to specify how the data contained in the document or a portion of the document should be interpreted and/or used.

A) Extensible Markup Language (XML) tag
B) Extensible Markup Language (XML) query
C) Extensible Markup Language (XML) Unicode
D) Hypertext Markup Language (HTML) attribute
E) Hypertext Markup Language (HTML) font

Question 39

________ allow(s)designers of Web documents to create their own customized tags,enabling the definition,transmission,validation,and interpretation of data between applications and between organizations.

A) MySQL
B) Active Server Pages
C) Extensible Markup Language
D) Perl
E) Unified Modeling Language

Question 40

Which of the following key elements of supply chain execution includes information related to payment schedules,consignment,and ownership of products and materials?

A) financial flow
B) personnel flow
C) information flow
D) product flow
E) material flow

Question 41

Supply chain effectiveness is the extent to which a company's supply chain is focusing on minimizing procurement,production,and transportation costs,sometimes by sacrificing excellent customer service.

Question 42

Supply chain efficiency is the extent to which a company's supply chain is focusing on maximizing customer service regardless of procurement,production,and transportation costs.

Question 43

Just-in-time is a business model in which the suppliers manage the manufacturer's inventory based on pre-established service levels.

Question 44

Production scheduling leads to the development of a sourcing plan.

Question 45

Briefly describe the concept of portals in the context of supply chain management.

Question 46

Compare and contrast vendor-managed inventory (VMI)model and traditional inventory model.List the benefits of the VMI model.

Question 47

Define supply chain planning (SCP)and list the processes that are generally supported by its modules.

Question 48

Although radio frequency identification (RFID)tags contain more information than bar codes,they require time-consuming hand scanning.

Question 49

Which of the following statements about radio frequency identification (RFID)passive tags is true?

A) They are small and relatively inexpensive.
B) They have a range up to 300 feet or more.
C) They cost more than active tags.
D) They have an internal battery source.
E) They typically cost about $10.

Question 50

The efficiency of a supply chain management (SCM)system is independent of the data entered into it.

Question 51

The flow of materials from suppliers to customers can be described as a supply network.

Question 52

Supply chain management improves the coordination of suppliers,product or service production,and distribution.

Question 53

Electronic Data Interchange (EDI)refers to computer-computer communication without any human intervention.

Question 54

Which of the following statements about radio frequency identification (RFID)active tags is true?

A) They are inexpensive, with prices starting at 10 cents.
B) They have a range up to 40 feet.
C) They are small compared to passive tags.
D) They include a battery.
E) They are less expensive compared to passive tags.

Question 55

The only drawback of Extensible Markup Language (XML)is that it is not customizable.

Question 56

Supply chain execution involves the development of various resource plans to support the efficient and effective production of goods and services.

Question 57

One major problem affecting supply chains are ripple effects referred to as the multiplier effect.

Question 58

Supply chain management is primarily used to optimize business processes within the organization.

Question 59

Which of the following statements is true about radio frequency identification (RFID)systems?

A) RFID scanning can be done at greater distances than bar code scanning.
B) RFID information is readable depending on the entity's position.
C) RFID tags contain less information than bar codes.
D) All RFID tags are small and relatively inexpensive.
E) RFID requires time-consuming hand scanning.

Question 60

Supply chain management systems allow for making trade-offs between efficiency and effectiveness for individual components or raw materials.

Question 61

Which of the following examples explains the improved planning benefit of using a customer relationship management (CRM)system?

A) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster
B) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies
D) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
E) providing integrated information that removes information handoffs thereby speeding both sales and support processes

Question 62

________ focuses on studying customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service.

A) Analytical customer relationship management (CRM)
B) Sales force automation
C) Operational customer relationship management (CRM)
D) Collaborative design automation
E) Integrated customer relationship management (CRM)

Question 63

Which of the following portrays the individualized service benefit of a customer relationship management (CRM)system?

A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
B) providing product information, sales status, support information, issue tracking, and so on
C) integrating all information for all points of contact with the customers so that all who interact with customers have the same view and understand current issues
D) providing integrated information which removes information handoffs thereby speeding both sales and support processes
E) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify and solve problems faster

Question 64

Which of the following portrays the improved product development benefit of a customer relationship management (CRM)system?

A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
B) providing product information, sales status, support information, issue tracking, and so on
C) providing integrated information that removes information handoffs thereby speeding both sales and support processes
D) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster
E) tracking customer behavior over time that helps to identify future opportunities for product and service offerings

Question 65

________ tools help a company in the execution of the customer relationship management (CRM)strategy by improving the management of promotional campaigns.

A) Business intelligence
B) Sales force automation
C) Enterprise marketing management
D) Customer interaction center
E) Execution management

Question 66

________ refers to systems for providing effective and efficient communication with the customer from the entire organization.

A) Analytical customer relationship management (CRM)
B) Sales force automation
C) Collaborative customer relationship management (CRM)
D) Operational customer relationship management (CRM)
E) Business intelligence

Question 67

Which of the following is a component of an operational customer relationship management (CRM)system?

A) sales force automation
B) data warehouse
C) enterprise resource planning system
D) data mining and visualization
E) business intelligence

Question 68

Briefly describe the information flow element of a supply chain.

Question 69

________ customer relationship management (CRM)systems help to create mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history.

A) Structured
B) Operational
C) Analytical
D) Integrated
E) Collaborative

Question 70

Describe the advantages of radio frequency identification (RFID)over standard bar code technologies.

Question 71

Identify the factors that help in building models of customer demand in an analytical customer relationship management (CRM)system.

A) sales forecasting and performance analyses
B) account and contact management
C) price, quality, and satisfaction analysis of competitors
D) customer history and preferences management
E) order processing and tracking

Question 72

Explain the importance of supply chain analytics.

Question 73

________ is the first component of an operational customer relationship management system that supports a broad range of business processes,such as tracking and managing customer history and preferences,account and contact management,and order processing and tracking.

A) Enterprise marketing management
B) Sales force automation
C) Data warehousing
D) Execution management
E) Customer service and support

Question 74

________ customer relationship management (CRM)includes systems used for automating the fundamental business processes and for interacting with a customer.

A) Operational
B) Integrated
C) Collaborative
D) Reflective
E) Structured

Question 75

Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer.

A) operational customer relationship management (CRM)
B) integrated customer relationship management (CRM)
C) analytical customer relationship management (CRM)
D) collaborative design automation
E) sales force automation

Question 76

________ refers to systems that automate requests,complaints,product returns,and information requests.

A) Data warehouse
B) Enterprise marketing management
C) Customer service and support
D) Execution management
E) Sales force automation

Question 77

Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?

A) to track global spending on suppliers
B) to encourage the bullwhip effect
C) to develop demand forecasts
D) to portray a positive corporate image
E) to collaborate demand and production planning

Question 78

Which of the following examples portrays the 24/7/365 operation of a customer relationship management (CRM)system?

A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on
B) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster
C) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
D) App-based technologies that remove information handoffs thereby speeding both sales and support processes
E) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively

Question 79

________ refers to using multiple communication channels to support the communication preferences of users,such as the Web,the company's Facebook page,industry blogs,telephone,and so on.

A) Analytics visualization
B) Customer engagement center
C) Enterprise application
D) Execution engine
E) Sales force efficiency

Question 80

Identify a key technology in analytical customer relationship management (CRM)systems.

A) failure effect and mode analysis
B) probabilistic risk assessment
C) neural networks
D) data mining
E) cognitive science