MIS Chapter 9

All CRM packages contain modules for PRM and ERM.

False

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

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

Safety stock acts as an inexpensive buffer for the lack of flexibility 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 that 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

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

True

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

True

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

True

Enterprise systems require fundamental chances in a way the business operates.

True

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

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

Inefficiencies in a supply chain are primarily caused bu inaccurate information

True

Major CRM application software vendors include Oracle and SAP

True

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

True

Supply chain inefficiencies can waste 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

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

True

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

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

Customer service modules in CRM systems provide tools for: a) assigning & managing customer service requests b) capturing prospect and customer data c) identifying profitable & unprofitable customers d) managing sales prospects and contact info

a) assigning & managing customer service requests

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with... a) configuration tables b) web services c) data dictionaries d) middleware

a) configuration tables

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

a) e-business suites

Capabilities of supply chain execution systems would NOT include: a) identifying the optimal transportation mode b) tracking the flow of finished goods c) managing materials d) managing warehouse operations

a) identifying the optimal transportation mode

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 _____ strategy. a) just-in-time b) frictionless c) bullwhip d) safety-stock

a) just-in-time

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

a) marketing

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

a) pull-based

____ 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

a) returns

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

a) safety stock

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

b) 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. a) Enterprise b) ERM c) PRM d) ERP

b) ERM

Analyzing customer buying patterns is an example of... a) CLTV b) analytical CRM c) operational CRM d) demand planning

b) analytical CRM

Customer relationship management applications dealing with the analysis of customer data to provide info for improving business performance best describes _____ applications. a) operational CRM b) analytical CRM c) operational CRM d) analytical SFA

b) analytical CRM

The measurement of the number of customers who stop using or purchasing products/services from a company is called: a) switching costs b) churn rate c) CLTV d) switch rate

b) churn rate

A build-to-order supply-chain model is also called a __________ model. a) supply-based b) demand-driven c) replenishment-driven d) push-based

b) demand-driven

Supply chain planning systems... a) track the physical status of goods b) identify the transportation mode to use for the product delivery c) track the financial info involving all parties d) track the status of orders

b) identify the transportation mode to use for the product delivery

Which of the following is NOT one of the key challenges facing global supply chains? a) geographical distances b) increased costs c) time zones d) cultural differences

b) increased costs

Which of the following is an important capability for sales processes that is found in most major CRM software products? a) returns management b) lead management c) channel promotions management d) events management

b) lead management

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) distribution channel b) supply chain c) value chain d) marketing channel

b) supply chain

A _______ is a method of interaction with a customer, such as a telephone or customer service desk. a) point of presence b) touch point c) sales point d) client channel

b) touch point

_____ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. a) SCM b) SFA c) ERM d) PRM

c) ERM

Which of the following is NOT true about enterprise systems? a) They help firms respond rapidly to customer requests for info or products b) The data have standardized definitions and formats that are accepted by the entire organization c) The software is expressly built to allow companies to mimic their unique business practices d) The software includes analytical tools to evaluate overall organization performance

c) The software is expressly built to allow companies to mimic their unique business practices

Analytical CRM applications.... a) include tools for marketing automation b) provide consolidated data for operational CRM applications c) are based on data consolidated from operational CRM applications d) provide customer-facing applications

c) are based on data consolidated from operational CRM applications

Enterprise software is built around thousands of predefined business processes that reflect... a) the firms organization b) industry goals c) best practices d) cutting edge workflow analyses

c) best practices

In order to achieve maximum benefit from an enterprise software package, a business... a) customizes the software to match all of its business processes b) uses only the processes in the software that match its own process c) changes the way it works to match the software's business processes d) selects only the software that best matches its existing business processes

c) changes the way it works to match the software's business processes

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 promotion

c) cross-selling

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

c) demand planning

Marketing modules in CRM systems would provide tools for a) assigning & managing customer service requests b) capturing prospect and customer data c) identifying profitable & unprofitable customers d) managing sales prospect & contact info

c) identifying profitable & unprofitable customers

Which of the following would NOT be considered a contact point? a) email b) website c) intranet d) retail store

c) intranet

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ____ systems. a) demand b) delivery c) planning d) execution

c) planning

Supply chain complexity and scale increases when firms: a) move to globalization b) manage the procurement, manufacturing, and distribution functions themselves c) produce products and services that coordinate with hundreds of firms and suppliers d) modify their existing workflows to comply with supply-chain management systems

c) produce products and services that coordinate with hundreds of firms and suppliers

Operational CRM applications include tools for a) identifying buying patterns b) calculating CLTV c) salesforce automation d) pinpointing unprofitable customers

c) salesforce automation

Which of the following is NOT an example of next-generation enterprise applications? a) open-source solutions b) social CRM c) solutions incorporating SCM d) solutions incorporating SOA

c) solutions incorporating SCM

A company's suppliers, suppliers' suppliers, and the processes for managing relationships with them is the: a) supplier's internal supply chain b) external supply chain c) upstream portion of the supply chain d) downstream portion of the supply chain

c) upstream portion of the supply chain

Why is overstocking warehouses NOT 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

d) It increases inventory costs

______ 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

d) PRM

Which of the following is NOT an example of the benefits enterprise systems provide to firms? a) Products are shipped to stores more quickly b) When products are ordered, the manufacturing & logistics teams are notified immediately c) There is more accurate sales info for managers to analyze d) The cost of info systems falls, making the firm more productive.

d) The cost of info systems falls, making the firm more productive.

Which of the following statements about enterprise applications is NOT true? a) They require organizational learning b) They introduce "switching costs" c) They are based on organization-wide definitions of data d) They are best implemented when few changes in business processes are required

d) They are best implemented when few changes in business processes are required

A company's organizations and processes for distributing and delivering products to the final customer is: a) supplier's internal supply chain, b) external supply chain c) upstream portion of the supply chain d) downstream portion of the supply chain

d) downstream portion of the supply chain

Supply chain _____ systems manage 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) demand b) delivery c) planning d) execution

d) execution

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

d) increased inventory levels

Components or parts of finished products are referred to as: a) upstream materials b) raw materials c) secondary products d) intermediate products

d) intermediate products

SFA modules in CRM systems would 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 prospects and contact info

d) managing sales prospects and contact info

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

d) planning; execution

The bullwhip effect is countered by... a) globalization b) disintermediation c) implementing an SCM d) reducing info uncertainty

d) reducing info uncertainty

Uncertainties arise in any supply chain because of: a) inaccurate or untimely info b) poor integration between systems of suppliers, manufacturers, & distributors c) inefficient or inaccurate MIS d) unforeseeable events

d) unforeseeable events

From your reading of the chapter's opening case, Nvidia implemented new information systems in order to achieve which of the main six business objectives? a) customer and supplier intimacy b) operational excellence c) survival d) improved decision making

improved decision making