Deck 9: Achieving Operational Excellence and Customer Intimacy:

Question 1

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(n):

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

Answer 1

B

Question 2

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

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

Answer 2

C

Question 3

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 application be appropriate for this company? What steps would you take in determining this?

Answer 3

An enterprise system may be too expensive, although there are enterprise software packages that are available to smaller companies. A cloud-based enterprise application might be the most economical way to implement an enterprise system. To determine whether this would be beneficial to Santori, I would first look at their existing business processes. It would be ideal to determine if their efficiency meets benchmarks in their industry and allows them to be competitive with other businesses in their niche. Then I would review cloud-based or open-source enterprise systems to see how each application's business processes matched up with Santori's. It would be important to compare the costs of instituting new business processes with the benefits and cost savings. Because their business is based on imports and distribution, and working with suppliers in different countries, it might be best to start off with a supply chain management system.

Question 4

Which of the following refers to a company's organizations and processes for distributing and delivering products to its final customers?

A) Supplier's internal supply chain
B) External supply chain
C) Upstream portion of the supply chain
D) Downstream portion of the supply chain
E) Value web

Question 5

Components or parts of finished products are referred to as:

A) upstream materials.
B) raw materials.
C) secondary products.
D) downstream materials.
E) intermediate products.

Question 6

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 mimic their unique business practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.
E) Extensive customization of enterprise software may degrade system performance.

Question 7

Enterprise systems include analytical tools.

Question 8

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

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

Question 9

Implementing enterprise software from Oracle enabled Alcoa to achieve all of the following except:

A) reduce requisition-to-pay cycle times.
B) reduce accounts payable transaction processing.
C) centralize financial activities.
D) centralize procurement activities.
E) obtain lower prices for raw materials.

Question 10

From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following objectives?

A) Customer and supplier intimacy
B) Operational excellence
C) Survival
D) Improved decision making
E) New products and services

Question 11

An enterprise system can help reduce redundant business processes.

Question 12

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

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

Question 13

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

Question 14

Manufacturing and production processes include all of the following except:

A) procurement.
B) materials requirement planning.
C) quality control.
D) transportation execution.
E) product configuration.

Question 15

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) Application software
E) CRM software

Question 16

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

A) Supplier's internal supply chain
B) External supply chain
C) Upstream portion of the supply chain
D) Downstream portion of the supply chain
E) Value web

Question 17

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 production costs.
E) It increases inventory costs.

Question 18

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) Bullwhip effect

Question 19

Identify and describe three major enterprise applications.

Question 20

In order to achieve maximum benefit from an enterprise software package, a business should:

A) customize the software to match all of its business processes.
B) use only the processes in the software that match its own processes.
C) change the way it works to match the software's business processes.
D) select only the software that best matches its existing business processes.
E) choose a cloud-based ERP package.

Question 21

From your reading of the Scott's Miracle-Gro case study, the company implemented SAP and JDA enterprise and supply chain planning systems to solve which of the following problems?

A) Lack of brand recognition
B) Lack of coordination among production facilities
C) Poor supply chain visibility for management
D) Shoddy record-keeping
E) Coordination issues caused by the merger of Scott's and Miracle-Gro

Question 22

The Warehouse Management System used by Haworth Incorporated is an example of which of the following?

A) Supply chain planning system
B) SFA module
C) PRM module
D) ERM module
E) Supply chain execution system

Question 23

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) just-in-time

Question 24

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 planning system
D) Supply chain execution system
E) Internal supply chain system

Question 25

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

Question 26

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) external; internal

Question 27

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) tracking financial information.

Question 28

Which of the following is not true about global supply chains?

A) Performance standards may vary from region to region.
B) Global supply chains typically span greater time differences than domestic supply chains.
C) Global supply chains typically have participants from a number of countries.
D) Supply chain management for global supply chains may need to reflect cultural differences.
E) Global supply chains are no different from domestic supply chains.

Question 29

Supply chain planning systems:

A) track the physical status of goods.
B) identify the transportation mode to use for product delivery.
C) track the financial information involving all parties.
D) track the status of orders.
E) track the management of materials.

Question 30

A build-to-order supply-chain model is also called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
E) continuous delivery

Question 31

The bullwhip effect can be countered by:

A) globalization.
B) disintermediation.
C) implementing a CRM.
D) reducing information uncertainty.
E) implementing a just-in-time strategy.

Question 32

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) The mobile digital platform

Question 33

Supply chain management systems are a type of enterprise system.

Question 34

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) Internal supply chain system

Question 35

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) push-pull

Question 36

Which of the following is not an example of inefficiencies in the supply chain?

A) Parts shortages
B) Underused plant capacity
C) Excessive finished goods inventory
D) High transportation costs
E) High switching costs

Question 37

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) increased inventory levels.
E) improved delivery service.

Question 38

According to the chapter case study, which of the following software vendors has enabled Scotts Miracle-Gro to develop consumer-driven demand planning?

A) Oracle
B) JDA Software
C) SAP
D) IBM
E) Salesforce.com

Question 39

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) Just-in-time planning

Question 40

A supply chain driven by actual customer orders or purchases follows a ________ model.

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

Question 41

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

Question 42

The downstream portion of the supply chain includes retailers and customers.

Question 43

With new flows of information made possible by web-based tools, supply chain management can more easily follow a push-based model.

Question 44

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain execution system.

Question 45

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

Question 46

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

Question 47

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

A) Email
B) website
C) Intranet
D) Retail store
E) Facebook

Question 48

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

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 purchase typically 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

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) supply chain

Question 51

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

Question 52

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

Question 53

A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.

Question 54

To model its existing supply chain and develop optimal manufacturing plans, a firm should implement a supply chain execution system.

Question 55

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.

Question 56

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 57

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

Question 58

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

Question 59

Discuss the business value of supply chain management systems.

Question 60

Identify two supply-chain models. Which is better?

Question 61

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 62

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

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

Question 63

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

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

Question 64

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) Campaign measurement

Question 65

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

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

Question 66

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) CLTV
C) Cost per lead
D) Cost per sale
E) CRM rate

Question 67

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 68

Data from which of the following is not used as an input by analytical CRM applications?

A) Operational CRM systems
B) Customer touch points
C) Customer lists purchased from others
D) CLTV
E) Demographic data

Question 69

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

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

Question 70

________ 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) PRM
B) SFA
C) ERM
D) CLTV
E) Just-in-time

Question 71

It is less expensive to sell a product to a new customer than to an existing customer.

Question 72

Customer relationship management systems typically provide software and online tools for sales, customer service, and:

A) marketing.
B) inventory management.
C) demand forecasting
D) tracking of the status of goods.
E) warehouse and transportation operations.

Question 73

________ management is an important capability for customer service processes that is found in most major CRM software products.

A) Returns
B) Lead
C) Account
D) Events
E) Field sales

Question 74

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

A) Operational
B) Social
C) Web-based
D) Sales force
E) Analytical

Question 75

All CRM packages contain modules for PRM and ERM.

Question 76

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 77

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) sales quote generation.

Question 78

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

A) switching costs.
B) CRM rate.
C) CLTV.
D) switch rate.
E) churn rate.

Question 79

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 PRM

Question 80

________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.

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