Deck 9: Achieving Operational Excellence and Customer Intimacy:

Question 1

Enterprise systems improve management decision making in all the following ways except:

A)providing up-to-the-minute data on sales,inventory and production.
B)providing more accurate sales and production forecasts.
C)improving forecasts of consumer behavior.
D)implementing standard definitions and formats worldwide.
E)determining the profitability of products.

Answer 1

C

Question 2

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

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

Answer 2

E

Question 3

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)CRM software
E)Supply chain management systems

Answer 3

B

Question 4

Identify at least four benefits and four challenges of enterprise systems.

Question 5

Identify and describe three major enterprise applications.

Question 6

To achieve the maximum benefit of a new ERP system,Tasty Baking implemented an enterprise system by:

A)using only the pre-defined processes in the ERP software that matched its own processes.
B)retaining its legacy systems to operate as a backup to the new enterprise system.
C)customizing less than 5 percent of the enterprise system processes.
D)changing the ERP software as needed to match their own processes.
E)using a cloud-based version of the ERP.

Question 7

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 support their existing business practices.
D)Enterprise software includes analytical tools to evaluate overall organizational performance.
E)Enterprise systems provide firm-wide information to help managers make better decisions.

Question 8

Organizations can rewrite enterprise system software to support their existing business processes.

Question 9

Extensive customization of enterprise software reduces the overall cost of implementation.

Question 10

In the supply chain,components or parts are referred to as:

A)upstream materials,organizations,and processes.
B)raw materials.
C)secondary products.
D)intermediate products.
E)downstream organizations and processes.

Question 11

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

Question 12

Enterprise systems are built around a small number of predefined business processes.

Question 13

From your reading of the chapter's opening case,which of the answers below is not a reason why Avon chose JDA's Manufacturing and Intelligent Fulfillment software?

A)Build a central planning function to coordinate demand,manufacturing and fulfillment
B)Improve the ability to predict what customers wanted to buy
C)Faster fulfillment of orders on a global scale
D)Reduce inventory
E)Develop new products

Question 14

Distribution and delivery of products to retailers is part of the:

A)downstream portion of the supply chain.
B)external supply chain.
C)upstream portion of the supply chain.
D)supplier's internal supply chain.
E)midstream portion of the supply chain.

Question 15

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)information system.

Question 16

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

A)Supplier's internal supply chain
B)Logistics supply chain
C)Downstream portion of the supply chain
D)Upstream portion of the supply chain
E)On Contract supplier's chain

Question 17

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

Question 18

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

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

Question 19

Coca-Cola implemented enterprise software from Oracle that enabled it to achieve all of the following except:

A)standardizing business processes worldwide.
B)improving its bargaining power with suppliers.
C)reacting faster to market changes.
D)reducing the number of employees.
E)reducing the cost of raw materials.

Question 20

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

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

Question 21

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)Perfect information

Question 22

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 optimization system
D)Supply chain execution system
E)Supply chain planning system

Question 23

As they move through the supply chain,________ are transformed into finished products and shipped to retailers and customers.

A)raw materials
B)intermediate products
C)basic products
D)natural resources
E)nascent products

Question 24

The difference between push- and pull-based models is summarized by which of the following slogans?

A)Sell what we make,not make what we sell.
B)Push what we make,not pull what we make.
C)Make what we sell,not sell what we make.
D)Pull what we make,not push what we sell.
E)Make what we push,not push what we sell.

Question 25

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)maintenance; development

Question 26

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)Customer planning

Question 27

Uncertainties in the supply chain often lead to:

A)declines in production.
B)increases in inventory across all tiers.
C)strategic changes in production plans.
D)the bull whip effect.
E)a reduction in safety stocks.

Question 28

A supply chain driven by forecasts of consumer demand follows a(n)________ model.

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

Question 29

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 inventory costs.
E)It lowers fill rate.

Question 30

The bullwhip effect can be countered by:

A)globalization.
B)disintermediation.
C)implementing a CRM.
D)reducing information uncertainty.
E)product differentiation.

Question 31

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)managing the financial information involving all parties.

Question 32

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)streamlined

Question 33

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)diffraction

Question 34

Supply chain planning systems perform all of the following functions except:

A)establish inventory levels for raw materials and finished goods.
B)identify the transportation mode to use for product delivery.
C)determine where to store finished goods.
D)determine how much product to manufacture in a given time period.
E)track the physical status of goods.

Question 35

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)Supply chain optimization system

Question 36

The total time it takes to complete a business process,from start to finish,is called its ________ time.

A)development
B)cycle
C)fulfillment
D)service
E)actualization

Question 37

A supply chain driven by actual customer orders is called a ________ model.

A)supply-based
B)demand-driven
C)replenishment-driven
D)pull-based
E)market-driven

Question 38

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)improved delivery service.
E)increased inventory levels.

Question 39

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)Extranets

Question 40

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system.

A)execution
B)planning
C)optimization
D)management
E)touch point

Question 41

Discuss the business value of supply chain management systems.

Question 42

Walmart's continuous replenishment system is an example of a(n)________ model.

A)push-based
B)pull-based
C)enterprise-based
D)supply chain optimization
E)forecast-based

Question 43

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

Question 44

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

Question 45

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 typically purchase 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 46

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

Question 47

The bullwhip effect leads to declining inventory costs across the entire supply chain.

Question 48

Identify two supply chain models.Which is better?

Question 49

Supply chain management systems are a type of enterprise system.

Question 50

Procter & Gamble (P&G)experienced a growth in its Pampers diapers inventory due to information distortions in the supply chain.

Question 51

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

Question 52

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

Question 53

From your reading of the Soma Bay case study,the company implemented JD Edwards Enterprise One to solve all of the following problems except:

A)overtaxing of its data centers.
B)providing timely reports of profitability.
C)providing detailed financial data.
D)combining data from general ledger and other financial systems.
E)using JD Edwards' other integrated modules.

Question 54

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 55

Firms in the supply chain develop safety stocks in order to increase the efficiency of their operations.

Question 56

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

Question 57

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

Question 58

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

Question 59

A ________ is an 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)point of service

Question 60

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

Question 61

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

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

Question 62

All CRM packages contain modules for PRM and ERM.

Question 63

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 SFA

Question 64

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

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

Question 65

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 66

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)Customer satisfaction management

Question 67

Major CRM products typically have all of the following service capabilities except:

A)customer satisfaction management.
B)returns management.
C)call center & help desk.
D)service analytics.
E)order management.

Question 68

Major CRM application software vendors include Oracle,SAP,Salesforce.com,and Microsoft Dynamics.

Question 69

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

A)Analytical
B)Employee
C)Operational
D)Partner
E)Next-generation

Question 70

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 71

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

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

Question 72

________ software modules seek to enhance collaboration between a company and its selling partners.

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

Question 73

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

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

Question 74

________ software modules deal with setting employee objectives,performance,and compensation.

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

Question 75

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)Customer lifetime value
C)Cost per lead
D)Cost per sale
E)Customer average value

Question 76

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)organizing effective marketing campaigns.

Question 77

________ 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)Customer
B)SOA
C)Marketing
D)Complex
E)SFA

Question 78

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

A)marketing.
B)account management.
C)advertising.
D)public relations.
E)human resources.

Question 79

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 80

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

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