Chapter 9 - Managing the Information Systems Function

6) 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

A) Configuration tables

23) 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

A) Safety stock

39) 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

A) execution

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.

A) generating demand forecasts for products

24) 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

A) just-in-time

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

B) Customer lifetime value

2) 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

B) ERP systems

25) 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

B) bullwhip

76) 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.

B) churn rate

38) 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

B) cycle

21) 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.

B) increases in inventory across all tiers

29) 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

C) Demand planning

62) ________ software modules deal with setting employee objectives, performance, and compensation. A) SCM B) SFA C) ERM D) DRM E) PRM

C) ERM

4) 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.

C) Enterprise software is expressly built to allow companies to support their existing business practices

78) ________ 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

C) Operational

9) 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.

C) improving forecasts of consumer behavior

32) A supply chain driven by forecasts of consumer demand follows a ________ model. A) pull-based B) build-to-stock C) push-based D) replenishment-driven E) optimized

C) push-based

22) 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.

D) It increases inventory costs

19) 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 suppliers chain

D) Upstream portion of the supply chain

59) From your reading of the LG Electronics case study, the company implemented JDA software solutions to solve all of the following problems except: A) overtaxing of its logistics network. B) lack of internal knowledge of the global business. C) inability to optimize transportation carriers. D) inability to forecast orders from retailers. E) increased logistics visibility.

D) inability to forecast orders from retailers

93) Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers. A) employee relationship management B) cross-selling C) just-in-time strategy D) web services E) operational CRM

D) web services

66) 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

E) Enhanced customer intimacy

90) Which of the following statements about enterprise applications is not true? A) Enterprise applications require organizational learning. B) Enterprise applications introduce "switching costs." C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications require fundamental changes in the way a business operates. E) Enterprise applications are best implemented when few changes in business processes are required.

E) Enterprise applications are best implemented when few changes in business processes are required

91) Which of the following is not an example of next-generation enterprise applications? A) Openbravo B) Social CRM C) Apache Open for Business (OFBiz) D) Salesforce.com E) JDA Software

E) JDA Software

63) ________ software modules seek to enhance collaboration between a company and its selling partners. A) SCM B) SFA C) ERM D) DRM E) PRM

E) PRM

73) 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.

E) calculating CLTV

69) 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.

E) cross-selling

35) 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.

E) increased inventory levels

10) Enterprise systems are built around thousands of predefined business processes.

TRUE

11) An enterprise system can rewrite enterprise system software to support existing business processes.

TRUE

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

TRUE

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

TRUE

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

TRUE

80) Major CRM application software vendors include Oracle, SAP, and Salesforce.com.

TRUE

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

TRUE

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

TRUE

84) Churn rate is an important indicator of the growth or decline of a company's customer base.

TRUE

99) SCM systems require multiple organizations to share information and business processes.

TRUE

94) Using social networking tools to converse with customers is called: A) analytical CRM. B) social CRM. C) operational CRM. D) PRM. E) ERM

B) social CRM.

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

TRUE

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

TRUE

92) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. A) e-business suites B) ERP systems C) middleware D) legacy systems E) cloud solutions

A) e-business suites

64) 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.

A) marketing

37) 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

A) raw materials

1) From your reading of the chapter's opening case, Skullcandy chose enterprise resource planning software from which of the following ERP vendors? A) Oracle B) SAP C) IBM D) Microsoft E) Infor Global Solutions

B) SAP

41) Walmart's continuous replenishment system is an example of a ________ model. A) push-based B) pull-based C) enterprise-based D) supply chain optimization E) forecast-based

B) pull-based

17) 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/an: A) distribution channel. B) supply chain. C) value chain. D) marketing channel. E) information system.

B) supply chain

61) Which of the following would not be considered a contact point? A) E-mail B) Website C) Intranet D) Retail store E) Facebook

C) Intranet

40) 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.

C) Make what we sell, not sell what we make

3) 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.

C) best practices.

7) 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.

C) customizing less than 5 percent of the enterprise system processes

30) 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

D) Supply chain execution system

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) maintenance; development

D) planning; execution

36) The bullwhip effect can be countered by: A) globalization. B) disintermediation. C) implementing a CRM. D) reducing information uncertainty. E) product differentiation.

D) reducing information uncertainty

8) 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.

D) reducing the number of employees

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

E) SFA

5) 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.

E) Select the functions of the system you wish to use

27) 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

E) Supply chain planning system

95) Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad-hoc analysis, as part of the application. A) social media B) PRM C) ERM D) SOA E) business intelligence

E) business intelligence

65) 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.

E) managing customer service requests

70) 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.

E) order management

28) 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.

E) track the physical status of goods

42) Supply chain management systems are a type of enterprise system.

TRUE

97) Switching costs of enterprise systems occur when changing software vendors.

TRUE

98) Enterprise applications are based on organization-wide definitions of data.

TRUE

60) 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) point of service

B) touch point

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

TRUE

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

TRUE

72) 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

B) Analytical CRM

74) 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

B) Analytical CRM

71) 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

B) Lead management

67) 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.

A) assigning and managing customer service request

68) 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.

A) assigning and managing customer service requests

20) 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.

A) downstream portion of the supply chain

34) 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

B) The Internet

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

TRUE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

79) All CRM packages contain modules for PRM and ERM.

FALSE

96) Enterprise systems do not require fundamental changes in the way the business operates.

FALSE

18) 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.

D) intermediate products

33) 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

D) pull-based