Chapter 9 Review Questions

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?

CLTV

________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.

ERM

Which of the following is not true about enterprise systems?

Enterprise software is expressly built to allow companies to mimic their unique business practices.

All CRM packages contain modules for PRM and ERM

False

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

False

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

False

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

False

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

False

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

False

Why is overstocking warehouses not an effective solution for a problem of low availability?

It increases inventory costs

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

Marketing

Supply chain software can be classified as either supply chain_____ systems or supply chain______ systems

Planning; execution

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

Pull-based

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

Select the functions of the system you wish to use.

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

True

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

True

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

True

Major CRM application software vendors include oracle and SAP

True

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

True

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

True

Analyzing customer buying patterns is an example of

analytical CRM

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

analytical CRM

Analytical CRM applications

are based on data consolidated from operational CRM applications.

Customer service modules in CRM systems provide tools for

assigning and managing customer service requests

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

best practices

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

cross-selling

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

demand-driven

A company's organizations and processes for distributing and delivering products to the final customers is the

downstream portion of the supply chain

Supply chain planning systems

identify the transportation mode to use for product delivery

Marketing modules in CRM systems would provide tools for

identifying profitable and unprofitable customers

Capabilities of supply chain execution systems would not include

identifying the optimal transportation mode

Components or parts of finished products are referred to as

intermediate products

Supply chain complexity and scale increases when firms

produce products and services that coordinate with hundreds or more firms and suppliers

The bullwhip effect is countered by

reducing information uncertainty

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

safety stock

Operational CRM applications include tools for

salesforce automation

Which of the following is not an example of next-generation enterprise applications?

solutions incorporating SCM

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

supply chain