Question 1

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

Accepted Answer

According to various studies, supply chain inefficiencies can result in wastage of up to 25% of a company's operating costs.

Question 2

Enterprise systems include analytical tools.

Accepted Answer

Enterprise systems often include various analytical tools such as business intelligence, data visualization, and predictive analytics to help organizations make data-driven decisions.

Question 3

Cross-selling markets complementary products to customers.

Accepted Answer

Cross-selling involves marketing additional products or services that complement the initial purchase made by the customer.

Question 4

An enterprise system helps reduce redundant business processes.

Accepted Answer

The answer of An enterprise system helps reduce redundant business...

Question 5

Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model.

Accepted Answer

Dell's supply chain is known for its pull-based model where the production is initiated based on the customer's order, rather than producing in anticipation of demand. This approach helps to reduce inventory costs and improve overall efficiency.

Question 6

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

Accepted Answer

This statement correctly defines analytical CRM, which involves using customer data and analysis tools to improve the understanding of customer behavior and preferences.

Question 7

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 master schedules are based on actual demand rather than forecasts. The production process is triggered by customer orders or inventory levels reaching a certain threshold.

Question 8

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.

Question 9

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

Accepted Answer

The answer of Safety stock acts as an inexpensive buffer...

Question 10

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 procuring raw materials and components to manufacture the products. The downstream portion is responsible for distributing and delivering these products to final customers.

Question 11

Major CRM application software vendors include Oracle and SAP.

Accepted Answer

Oracle and SAP are among the major vendors of CRM application software.

Question 12

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

Accepted Answer

Inaccurate information can lead to miscommunications and delays in the supply chain, ultimately causing inefficiencies.

Question 13

It can cost six times more to sell a product to a new customer than to an existing customer.

Accepted Answer

This is a commonly cited statistic in the business world. It is more cost-effective for a company to retain and upsell to existing customers than to constantly acquire new ones.

Question 14

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

Accepted Answer

CRM software can track customer behavior and history, allowing organizations to identify and prioritize high-value customers for personalized and targeted marketing efforts, promotions, and experiences.

Question 15

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

In the pre-Internet environment, it was difficult to coordinate supply chains due to the lack of smooth information flow between different internal processes.

Question 16

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

Accepted Answer

In some industries, such as retail or manufacturing, total supply chain costs can approach or even exceed 75 percent of the total operating budget.

Question 17

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 true phenomenon that occurs when there is a lack of communication and coordination between different levels of the supply chain, leading to an amplified distortion of demand information. This can result in inefficient inventory management, production planning, and ultimately, wastage of resources.

Question 18

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

Accepted Answer

Enterprise systems are integrated, complex software applications that are designed to support and automate business processes across the entire organization. Implementing an enterprise system requires a fundamental change in the way the business operates, as it often involves restructuring business processes, redefining roles and responsibilities, and adopting new approaches to data management and collaboration.

Question 19

Supply chain management systems are a type of enterprise system.

Accepted Answer

Supply chain management systems are a type of enterprise system that involve managing the flow of goods, services, and information among multiple organizations, such as suppliers, manufacturers, distributors and retailers.

Question 20

All CRM packages contain modules for PRM and ERM.

Accepted Answer

Not all CRM packages contain modules for PRM (Partner Relationship Management) and ERM (Employee Relationship Management). These modules are typically found in more specialized CRM software or as separate standalone software.

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