Question 1

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

Accepted Answer

In a pull-based model of SCM systems, production schedules are triggered by actual demand for products, not forecasts of demand.

Question 2

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

Accepted Answer

False

Question 3

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

Accepted Answer

Inaccurate information can lead to delays, excess inventory, stockouts, and other inefficiencies in a supply chain. Effective communication and sharing of accurate data is essential for a smooth and efficient supply chain operation.

Question 4

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

Accepted Answer

This is true as without the Internet, sharing and obtaining real-time information about inventory, orders, and shipments posed a challenge to supply chain coordination.

Question 5

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

Accepted Answer

The upstream portion of the supply chain includes the organizations and processes for obtaining raw materials or components and producing the products, while the downstream portion involves the distribution and delivery to final customers.

Question 6

PRM provides a firm and its distributors trade information and distributes leads about customers.

Accepted Answer

PRM (Partner Relationship Management) software is designed to help firms manage their relationship with their partners and distributors. This includes providing them with trade information and leads about customers. Therefore, the statement is true.

Question 7

Dell Inc. is an example of a push-based model.

Accepted Answer

Dell Inc. is known for its pull-based model, where products are built to order based on customer demand rather than being pushed to the market.

Question 8

Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers.

Accepted Answer

Enterprise systems can be both internally and externally oriented. They can include modules for communicating with customers and suppliers, such as customer relationship management (CRM) and supply chain management (SCM) systems.

Question 9

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.

Accepted Answer

Total supply chain costs can vary depending on the industry and business, but it is not uncommon for it to represent a significant portion of operating expenses. In some industries, such as retail and manufacturing, supply chain costs can approach or even exceed 75 percent of the total operating budget.

Question 10

Major CRM application software vendors include Oracle and SAP.

Accepted Answer

Oracle and SAP are both major CRM application software vendors.

Question 11

Enterprise systems require fundamental changes in the way the business operates.

Accepted Answer

Enterprise systems are complex software systems that are designed to integrate various business processes and functions across an organization. Implementing an enterprise system requires a significant investment of time, money, and resources, as well as a fundamental rethinking of how the business operates. It often involves standardizing processes, consolidating data, and reengineering workflows to align with system capabilities. Therefore, it requires fundamental changes in the way the business operates.

Question 12

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.

Accepted Answer

The bullwhip effect is a well-known phenomenon in supply chain management where small fluctuations in demand at the end of the supply chain can have a significant impact on upstream suppliers, resulting in an increase in variability as information is transmitted from one entity to the next. This can lead to overproduction or underproduction and can result in higher inventory costs, missed opportunities and lost revenues.

Question 13

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

Accepted Answer

Safety stock is not necessarily inexpensive; it incurs holding costs and ties up capital, but it serves as a buffer to mitigate supply chain uncertainties.

Question 14

Cross-selling is the marketing of complementary products to customers.

Accepted Answer

Cross-selling is a marketing strategy wherein complementary products or services are recommended to a customer who has already purchased a product or service from the same company.

Question 15

CRM software can help organizations identify high-value customers for preferential treatments.

Accepted Answer

CRM software can track customer behavior and purchase history, allowing organizations to identify high-value customers and offer them personalized services and promotions to retain their loyalty.

Question 16

All CRM packages contain modules for PRM and ERM.

Accepted Answer

While many CRM packages may offer some features that overlap with PRM (partner relationship management) and ERM (employee relationship management), not all CRM software contains dedicated modules for these specific functionalities.

Question 17

Analytical CRM uses tools to analyze customer data collected from the firm's customer touch points and from other sources.

Accepted Answer

Analytical CRM is focused on analyzing customer data to gain insights and improve business decisions. This involves using various analytical tools and techniques to extract useful information from customer data collected from different sources.

Question 18

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

Accepted Answer

According to studies, supply chain inefficiencies can waste up to 25 percent of a company's operating costs.

Question 19

Firms can use social networking sites to improve their efficiency in customer service.

Accepted Answer

Social networking sites provide a platform for firms to interact with their customers in real-time, resolving their queries and concerns efficiently. By addressing customer issues promptly, firms can enhance their reputation and build customer loyalty. This can ultimately lead to increased profitability.

Question 20

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Accepted Answer

Supply chain execution systems are designed to manage the flow of products through the distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient way. Demand forecasting and developing sourcing and manufacturing plans are functions of supply chain planning systems, not execution systems.

Quiz 9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications