CIS chapter 9
: 1: Easy AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 67) 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
: 2: Moderate AACSB: Analytical Thinking LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 66) 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) sales quote generation.
A
: 2: Moderate AACSB: Analytical Thinking LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 69) ________ management is an important capability for customer service processes that is found in most major CRM software products. A) Returns B) Lead C) Account D) Events E) Field sales
A
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 21) 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) push-pull
A
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 28) 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) tracking financial information.
A
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 77) ________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation. A) Operational B) Social C) Web-based D) Sales force E) Analytical
A
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 63) Customer relationship management systems typically provide software and online tools for sales, customer service, and: A) marketing. B) inventory management. C) demand forecasting D) tracking of the status of goods. E) warehouse and transportation operations.
A
: 3: Challenging AACSB: Analytical Thinking LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 5) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Select the functions of the system you wish to use. 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) Rewrite the software to support the way the company's business processes work.
A
: 3: Challenging AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 30) A supply chain driven by actual customer orders or purchases follows a ________ model. A) pull-based B) build-to-stock C) push-based D) replenishment-driven E) continuous delivery
A
: 3: Challenging AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 20) 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) Bullwhip effect
A
: 3: Challenging AACSB: Application of Knowledge LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 93) 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) groupware
A
: 3: Challenging AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 65) CRM systems help businesses achieve which of the following business objectives? A) Enhanced customer intimacy B) Automated production forecasts C) Faster time to market with new products and services D) Enhanced supplier intimacy E) Automated accounting processes
A
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 37) The Warehouse Management System used by Haworth Incorporated is an example of which of the following? A) Supply chain planning system B) SFA module C) PRM module D) ERM module E) Supply chain execution system
E
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 38) Which of the following is not true about global supply chains? A) Performance standards may vary from region to region. B) Global supply chains typically span greater time differences than domestic supply chains. C) Global supply chains typically have participants from a number of countries. D) Supply chain management for global supply chains may need to reflect cultural differences. E) Global supply chains are no different from domestic supply chains.
E
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 19) 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 production costs. E) It increases inventory costs.
E
: 1: Easy AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 64) 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
: 2: Moderate AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 35) Which of the following is not an example of inefficiencies in the supply chain? A) Parts shortages B) Underused plant capacity C) Excessive finished goods inventory D) High transportation costs E) High switching costs
E
: 2: Moderate AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 75) The measurement of the number of customers who stop using or purchasing products or services from a company is called: A) switching costs. B) CRM rate. C) CLTV. D) switch rate. E) churn rate.
E
: 2: Moderate AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 8) Manufacturing and production processes include all of the following except: A) procurement. B) materials requirement planning. C) quality control. D) transportation execution. E) product configuration.
E
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 72) 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
: 3: Challenging AACSB: Analytical Thinking LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 9) Implementing enterprise software from Oracle enabled Alcoa to achieve all of the following except: A) reduce requisition-to-pay cycle times. B) reduce accounts payable transaction processing. C) centralize financial activities. D) centralize procurement activities. E) obtain lower prices for raw materials.
E
: 3: Challenging AACSB: Analytical Thinking LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 92) Which of the following is not an example of a next-generation enterprise application? A) Openbravo B) Social CRM C) SAP Business Suite D) Salesforce.com E) i2 Technologies
E
: 3: Challenging AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 29) From your reading of the Scott's Miracle-Gro case study, the company implemented SAP and JDA enterprise and supply chain planning systems to solve which of the following problems? A) Lack of brand recognition B) Lack of coordination among production facilities C) Poor supply chain visibility for management D) Shoddy record-keeping E) Coordination issues caused by the merger of Scott's and Miracle-Gro
E
: 1: Easy AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 12) Identify and describe three major enterprise applications.
Enterprise systems, customer relationship management, and supply chain management are three enterprise applications. Enterprise systems are based on a suite of integrated software modules and a common central database. Enterprise systems utilize enterprise software to support financial and accounting, human resources, manufacturing and production, and sales and marketing processes. Enterprise systems provide many benefits including an enterprise-enabled organization, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven business processes. Supply-chain management systems help an organization better manage its supply chain, including planning, sourcing, making, delivering, and returning items. Supply-chain management software can be categorized as a supply-chain planning system or as a supply-chain execution system. A supply-chain planning system enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. A supply-chain execution system 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. Supply-chain management benefits include improved customer service and responsiveness, cost reduction, and cash utilization. Customer-relationship management systems help firms maximize the benefits of their customer assets. These systems capture and consolidate data from all over the organization and then distribute the results to various systems and customer touch points across the enterprise. Customer-relationship management systems can be classified as operational or as analytical. Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation. Analytical CRM refers to customer-relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for customer acquisition and retention.
: 1: Easy AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 47) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
FALSE
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 50) To model its existing supply chain and develop optimal manufacturing plans, a firm should implement a supply chain execution system.
FALSE
: 1: Easy AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 80) All CRM packages contain modules for PRM and ERM.
FALSE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 40) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
FALSE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 42) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
FALSE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 44) 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
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 51) With new flows of information made possible by web-based tools, supply chain management can more easily follow a push-based model.
FALSE
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 84) Operational CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.
FALSE
: 3: Challenging AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 79) It is less expensive to sell a product to a new customer than to an existing customer.
FALSE
: 3: Challenging AACSB: Analytical Thinking; Written and Oral Communication LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 88) What are four questions that a good CRM system can help answer and how do firms use the answers to those questions?
Four questions that a good CRM system can help answer are: (1) What is the value of a particular customer to the firm over his or her lifetime?; (2) Who are our most loyal customers? ; (3) Who are our most profitable customers?; and (4) What do these profitable customers want to buy? Firms use the answers to these questions to acquire new customers, provide better service and support to existing customers, customize their offerings more precisely to customer preferences, and provide ongoing value to retain profitable customers.
: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 55) What additional complexities are faced in global supply chains? How does the Internet help in managing global supply chains?
Global supply chains typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Although the purchase price of many goods might be lower abroad, there are often additional costs for transportation, inventory, and local taxes or fees. Performance standards may vary from region to region or from nation to nation. Supply-chain management may need to reflect foreign government regulations and cultural differences. All of these factors impact how a company takes orders, plans distribution, organizes warehousing, and manages inbound and outbound logistics throughout the global markets it services. The Internet helps companies manage many aspects of their global supply chains, including sourcing, transportation, communications, and international finance. As goods are being sourced, produced, and shipped, communication is required among retailers, manufacturers, contractors, agents, and logistics providers. With Internet technology, supply chain members communicate through a web-based system. Firms use intranets to improve coordination among their internal supply chain processes, and they use extranets to coordinate supply chain processes shared with their business partners.
: 1: Easy AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 85) Identify and describe the two types of customer relationship management applications.
Operational CRM and analytical CRM are two types of CRM. Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation. Analytical CRM refers to customer-relationship management applications dealing with the analysis of customer data to provide information for improving business performance.
: 3: Challenging AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 52) The downstream portion of the supply chain includes retailers and customers.
TRUE
: 3: Challenging AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 43) 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
: 3: Challenging AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 48) Total supply chain costs in some industries approach 75 percent of the total operating budget.
TRUE
: 3: Challenging AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 53) A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain execution system.
TRUE
: 3: Challenging AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 82) Cross-selling markets complementary products to customers.
TRUE
: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 87) You have been hired by Croydon Visiting Nurse Services, whose business processes are all manual, paper-based processes. How might a CRM system benefit this business?
A CRM system that includes patient's health records would allow any nurse to take over if another needed replacement. Assuming that the nurses had access via laptops or other mobile devices to the system, a new nurse would have instant access to the patients' needs. The CRM might also be able to record which types of treatments or products customers were most interested in or gave the greatest benefit to customers, and help anticipate needs. Additionally, with PRM capabilities, products needed by the nursing service would be more easily anticipated, ordered, and delivered. Since the employees work in the field, or away from a central office, Internet-based communications might provide tools for reviewing employee performance.
: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 56) Identify two supply-chain models. Which is better?
A push-based supply chain refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products. A pull-based model refers to a supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered. Pull-based models are better.
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 74) 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) CLTV C) Cost per lead D) Cost per sale E) CRM rate
B
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 70) 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) Campaign measurement
B
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 71) 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 PRM
B
: 2: Moderate AACSB: Information Technology LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 95) According to a 2014 survey of 192 companies conducted by Panorama Consulting Solutions, the average cost of an ERP project was: A) $280,000. B) $2.8 million. C) $28 million. D) $280 million. E) $2.8 billion.
B
: 3: Challenging AACSB: Analytical Thinking LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 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) Application software E) CRM software
B
: 3: Challenging AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 36) According to the chapter case study, which of the following software vendors has enabled Scotts Miracle-Gro to develop consumer-driven demand planning? A) Oracle B) JDA Software C) SAP D) IBM E) Salesforce.com
B
: 3: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 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) enterprise system.
B
: 3: Challenging AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 73) Which of the following tools is used to analyzing customer buying patterns? A) CLTV B) Analytical CRM C) Operational CRM D) Demand planning. E) SFA
B
: 1: Easy AACSB: Analytical Thinking; Written and Oral Communication LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 86) Identify five benefits of customer-relationship management systems.
Benefits include: better customer service, make call centers more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, acquire new profitable customers, sell additional products and services, provide customer information for developing new products, increase product utilization, reduce sales and marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitability, respond quickly to market opportunities.
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 17) Which of the following refers to a company's suppliers, supplier's suppliers, and the processes for managing relationships with them? A) Supplier's internal supply chain B) External supply chain C) Upstream portion of the supply chain D) Downstream portion of the supply chain E) Value web
C
: 2: Moderate AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 60) Which of the following would not be considered a contact point? A) Email B) website C) Intranet D) Retail store E) Facebook
C
: 2: Moderate AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 7) In order to achieve maximum benefit from an enterprise software package, a business should: A) customize the software to match all of its business processes. B) use only the processes in the software that match its own processes. C) change the way it works to match the software's business processes. D) select only the software that best matches its existing business processes. E) choose a cloud-based ERP package.
C
: 2: Moderate AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 3) Enterprise software is built around thousands of predefined business processes that reflect: A) the firm's organization. B) industry benchmarks. C) best practices. D) cutting edge workflow analyses. E) government regulations.
C
: 2: Moderate AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 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 mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance. E) Extensive customization of enterprise software may degrade system performance.
C
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 24) 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 planning system D) Supply chain execution system E) Internal supply chain system
C
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 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) Just-in-time planning
C
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 62) ________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. A) SCM B) SFA C) ERM D) PRM E) SCP
C
: 3: Challenging AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 68) Selling a customer with a checking account a home improvement loan is an example of: A) operational CRM. B) direct marketing. C) cross-selling. D) cross-channel promotions. E) sales force automation.
C
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 18) Which of the following refers to a company's organizations and processes for distributing and delivering products to its final customers? A) Supplier's internal supply chain B) External supply chain C) Upstream portion of the supply chain D) Downstream portion of the supply chain E) Value web
D
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 16) Components or parts of finished products are referred to as: A) upstream materials. B) raw materials. C) secondary products. D) downstream materials. E) intermediate products.
D
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 23) 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) external; internal
D
: 1: Easy AACSB: Application of Knowledge LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 91) 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 are best implemented when few changes in business processes are required. E) Open source enterprise applications are attractive to companies because of their low cost.
D
: 1: Easy AACSB: Application of Knowledge LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 96) According to a 2014 survey of 192 companies conducted by Panorama Consulting Solutions, ERP projects took about ________ to complete. A) 1 month B) 6 months C) 12 months D) 16 months E) 24 months
D
: 1: Easy AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 33) 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) increased inventory levels. E) improved delivery service.
D
: 1: Easy AACSB: Information Technology LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 94) 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) ESS B) SAP C) on-demand D) business intelligence E) just-in-time
D
: 2: Moderate AACSB: Analytical Thinking LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 6) Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business? A) Groupware B) Web services C) Data dictionaries D) Middleware E) Configuration tables
D
: 2: Moderate AACSB: Analytical Thinking LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 34) The bullwhip effect can be countered by: A) globalization. B) disintermediation. C) implementing a CRM. D) reducing information uncertainty. E) implementing a just-in-time strategy.
D
: 2: Moderate AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 61) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners. A) SCM B) SFA C) ERM D) PRM E) SCP
D
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 27) 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) Internal supply chain system
D
: 2: Moderate AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 78) Data from which of the following is not used as an input by analytical CRM applications? A) Operational CRM systems B) Customer touch points C) Customer lists purchased from others D) CLTV E) Demographic data
D
: 3: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 90) According to the case study on Unilever, over a ten-year period, Unilever reduced the number of ERP systems it had from ________ to ________. A) 1000; 100 B) 500; 50 C) 250; 25 D) 250; 4 E) 100; 10
D
: 2: Moderate AACSB: Information Technology LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 11) An enterprise system can help reduce redundant business processes.
TRUE
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 45) 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
: 3: Challenging AACSB: Analytical Thinking LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 10) Enterprise systems include analytical tools.
TRUE
: 1: Easy AACSB: Analytical Thinking; Written and Oral Communication LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 57) 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 purchase typically 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?
Typical problems in supply chains arise from unforeseeable events. In a plant nursery, variations in the weather, growing season, plant diseases, and crop output would be uncertainties. Other problems might be interstate regulations governing plants allowed in different states, and making sure plants survive and are healthy during transportation. It would be very important to have up-to-date forecasting of the weather or growing seasons that could anticipate possible problems, and analyze and determine the best transportation routes.
: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 13) 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 application be appropriate for this company? What steps would you take in determining this?
An enterprise system may be too expensive, although there are enterprise software packages that are available to smaller companies. A cloud-based enterprise application might be the most economical way to implement an enterprise system. To determine whether this would be beneficial to Santori, I would first look at their existing business processes. It would be ideal to determine if their efficiency meets benchmarks in their industry and allows them to be competitive with other businesses in their niche. Then I would review cloud-based or open-source enterprise systems to see how each application's business processes matched up with Santori's. It would be important to compare the costs of instituting new business processes with the benefits and cost savings. Because their business is based on imports and distribution, and working with suppliers in different countries, it might be best to start off with a supply chain management system.
1) From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following objectives? A) Customer and supplier intimacy B) Operational excellence C) Survival D) Improved decision making E) New products and services
B
: 1: Easy AACSB: Application of Knowledge; Written and Oral Communication LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 59) 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) supply chain
B
: 2: Moderate AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 76) ________ 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) PRM B) SFA C) ERM D) CLTV E) Just-in-time
B
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 22) 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) just-in-time
B
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 25) Supply chain planning systems: A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders. E) track the management of materials.
B
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 32) 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) The mobile digital platform
B
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 31) A build-to-order supply-chain model is also called a ________ model. A) supply-based B) demand-driven C) replenishment-driven D) push-based E) continuous delivery
B
: 3: Challenging AACSB: Analytical Thinking; Written and Oral Communication LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 58) Discuss the business value of supply chain management systems.
Supply chain management systems enable firms to streamline both their internal and external supply chain processes and provide management with more accurate information about what to produce, store, and move. By implementing a networked and integrated supply chain management system, companies match supply to demand, reduce inventory levels, improve delivery service, speed product time to market, and use assets more effectively. 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. Reducing supply chain costs has a major impact on firm profitability. In addition to reducing costs, supply chain management systems help increase sales. If a product is not available when a customer wants it, customers often try to purchase it from someone else. More precise control of the supply chain enhances the firm's ability to have the right product available for customer purchases at the right time.
: 2: Moderate AACSB: Information Technology LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 54) Identify two classifications for supply-chain software. For each classification, identify four capabilities.
Supply-chain planning systems and supply-chain execution systems are two classifications for supply-chain software. Supply-chain planning systems enable a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product. Capabilities include order planning, advanced scheduling and manufacturing planning, demand planning, distribution planning, and transportation planning. Supply-chain execution systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations. Capabilities include order commitments, final production, replenishment, distribution management, and reverse distribution.
: 1: Easy AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 39) Supply chain management systems are a type of enterprise system.
TRUE
: 1: Easy AACSB: Application of Knowledge LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 97) Enterprise applications introduce switching costs.
TRUE
: 1: Easy AACSB: Application of Knowledge LO: 9.4: What are the challenges that enterprise applications pose and how are enterprise applications taking advantage of new technologies? 98) Enterprise systems require fundamental changes in the way the business operates.
TRUE
: 1: Easy AACSB: Information Technology LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 81) Major CRM application software vendors include Oracle and SAP.
TRUE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 41) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
TRUE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 49) A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.
TRUE
: 2: Moderate AACSB: Application of Knowledge LO: 9.2: How do supply chain management systems coordinate planning, production, and logistics with suppliers? 46) Inefficiencies in a supply chain are primarily caused by inaccurate or untimely information.
TRUE
: 2: Moderate AACSB: Application of Knowledge LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 83) CRM software can help organizations identify high-value customers for preferential treatments.
TRUE
: 3: Challenging AACSB: Analytical Thinking; Written and Oral Communication LO: 9.1: How do enterprise systems help businesses achieve operational excellence? 14) What business processes are supported by enterprise systems? Give specific examples.
The four major business processes supported by enterprise systems are: • Financial and accounting processes, including general ledger, accounts payable, accounts receivable, fixed assets, cash management and forecasting, product-cost accounting, cost-center accounting, asset accounting, tax accounting, credit management, and financial reporting. • Human resources processes, including personnel administration, time accounting, payroll, personnel planning and development, benefits accounting, applicant tracking, time management, compensation, workforce planning, performance management, and travel expense reporting. • Manufacturing and production processes, including procurement, inventory management, purchasing, shipping, production planning, production scheduling, material requirements planning, quality control, distribution, transportation execution, and plant and equipment maintenance. • Sales and marketing processes, including order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and commission management, and sales planning.
: 1: Easy AACSB: Application of Knowledge; Written and Oral Communication LO: 9.3: How do customer relationship management systems help firms achieve customer intimacy? 89) What is a PRM module? How does it differ from an ERM module?
The more comprehensive CRM packages contain modules for partner relationship management (PRM) and employee relationship management (ERM). PRM uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. If a company does not sell directly to customers but rather works through distributors or retailers, PRM helps these channels sell to customers directly. It provides a company and its selling partners with the ability to trade information and distribute leads and data about customers, integrating lead generation, pricing, promotions, order configurations, and availability. It also provides a firm with tools to assess its partners' performances so it can make sure its best partners receive the support they need to close more business. ERM software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training. Major CRM application software vendors include Oracle, SAP, Salesforce.com, and Microsoft Dynamics CRM.
