250 ch.7
83) In the auto industry, supply chain management applications will include A) SRM, inventory, and CRM. B) customer tracking, production, and advertising. C) SRM and CRM only. D) ERP. E) production capacity.
A
84) In the settlement phase of an SRM application, the SRM is linked to A) the financial management application or module. B) operations and manufacturing department. C) the company's web ordering system. D) the supplier's bank account. E) the inventory management application.
A
65) Lead tracking is an application that is traditionally run in the functional area of A) operations. B) sales and marketing. C) manufacturing. D) accounting and finance. E) human resources.
B
68) One of the problems of functional systems is that data stored for different functional areas may be inconsistent and A) incomplete. B) redundant. C) outdated. D) not integrated E) disjointed.
B
69) When functional systems are isolated, business processes are A) redundant. B) disjointed. C) incomplete. D) not integrated. E) outdated.
B
80) When adopting an ERP, the organization gains benefits because A) ERP has process blueprints. B) ERP allows the organization to gain the benefit of processes that have already been proven successful. C) ERP integrates all the activities in the organization and makes the organization successful. D) ERP allows the organization to standardize all of the corporate data. E) ERP places all the corporate data into a single database and makes business process more successful.
B
40) ________ support all of the primary business processes as well as the human resources and accounting support processes. A) Customer relationship management systems B) Supply chain management systems C) Enterprise resource planning systems D) Value chain management systems E) Supplier relationship management systems
C
48) Which of the following is a function of a manufacturing system? A) Order entry B) Customer service C) Scheduling D) Order management E) Inventory management
C
56) The Internet and database management systems have allowed manufacturers like Dell to sell directly to consumers. This is called A) direct marketing. B) B2G sales. C) disintermediation. D) integrated CRM. E) eBay.
C
57) The only source of revenue in the supply chain is the A) sales department. B) cash register. C) end consumer. D) purchasing department. E) manufacturer.
C
70) If the order entry system defines part numbers using a 6-digit code and the inventory system defines part numbers using an 8 digit code, the data must be ________ in order for the two systems to share data. A) recombined B) imported C) restructured D) updated E) converted
C
75) ________ systems link up all the processes that touch the customer. A) MRP B) CASE C) CRM D) ERP E) SRM
C
79) The greatest advantages of a CRM system is that A) organizations can prioritize sales time and effort. B) it can use sales management applications. C) customer-touching processes can be linked to one another. D) all the data is stored in a single database. E) sales people can potentially increase sales.
C
74) Business process management is all about A) CRM. B) installing SAP R/3 to gain industry standard processes. C) shortening your supply chain. D) accomplishing the same activities with less resource cost. E) becoming a cost leader under Porter's models.
D
78) When implementing a system such as SAP, companies must (can) A) experience substantial change. B) save money. C) experience its primary benefits from the software. D) adhere to industry standard processes. E) continue to use all their own business process standards.
D
32) Originally the ________ supported the work of a single department or function. A) calculation systems B) cross-function systems C) departmental systems D) inter-organizational systems E) functional systems
E
35) Which of the following are examples of accounting functional systems? A) Lead tracking B) Inventory management C) Sales forecasting D) Manufacturing operations E) Accounts receivable
E
36) Which of the following is (are) TRUE statements with functional systems? A) Improved data results B) Improved data integrity C) Better communications D) Increased profitability E) Isolated systems
E
37) Which of the following is (are) consequence(s) of a disjoint system? A) Efficiency B) Greater supply of integrated enterprise information C) Decreased cost D) Cohesive business processes E) Lower profits
E
39) ________ support the business processes of attracting, selling, managing, delivering, and supporting customers. A) Enterprise resource planning systems B) Value chain management systems C) Supplier relationship management systems D) Supply chain management systems E) Customer relationship management systems
E
46) Functional applications are sometimes called A) islands of automation. B) inefficient systems. C) isolated silos. D) functional islands. E) functional silos.
E
49) Which of the following is involved in supply chain management? A) SRM B) CRM C) VRM D) CRM and VRM E) SRM and CRM
E
52) Which of the following contains the elements of the customer life cycle? A) Marketing, customer acquisition, relationship management, and customer service B) Customer acquisition, loss/churn, accounts receivable, and customer service C) Loss/churn, relationship management, marketing, and accounts receivable D) Relationship management, accounts payable, loss/churn, and marketing E) Loss/churn, Relationship management, customer acquisition, and marketing
E
53) The purpose of relationship management applications is to A) extend social marketing effectiveness. B) reduce accounts receivable. C) advertise promotions in a timely way. D) get new customers. E) maximize the value of the existing customer base.
E
70) If the order entry system defines part numbers using a 6-digit code and the inventory system defines part numbers using an 8 digit code, the data must be ________ in order for the two systems to share data. A) recombined B) imported C) restructured D) updated E) converted
E
73) A hotel that is experiencing a slow period could use a(n) ________ to market promotions to its best customers. A) flyer campaign B) general ledger program C) twitter account D) facebook page E) integrated CRM application
E
77) The movement of business process design came about because systems developers began to wonder how they could A) improve existing functional systems. B) develop customer management relationship systems. C) use networks to go beyond just automating functional applications. D) use systems to automate the supply chain. E) integrate several different areas in an entire value chain.
E
81) SRM applications support these three basic processes A) approve, enter, and pay. B) book, receive, and attend. C) attract, qualify, and convert. D) invoice, inventory, and payment. E) source, purchase, and settle.
E
A general ledger application would be an example of a process-based system.
F
Business process design is well understood and the outcomes are fairly certain once the changes are begun.
F
Cross-functional systems facilitate work of a single department or business function
F
Customer service is typically part of the marketing and sales function.
F
In a functional system, the data required to answer queries from and about customers is contained within the order management system so links to other systems are not necessary.
F
In the past 10 years, all companies have entirely switched from functional systems to fully integrated or cross-functional systems.
F
Independent, isolated systems are good for making businesses more efficient today.
F
It is not possible to improve business processes without technological change.
F
Most employees welcome and embrace changes caused by business process redesign.
F
Only commercial companies can benefit competitively by using information systems.
F
Order entry is usually found in the accounting functional systems.
F
Porter's concept of the "process chain" is crucial for developing a competitive strategy.
F
The user interface for Enterprise Application Integration systems and Enterprise Resource Planning systems look completely different to the end user.
F
Customer relationship management (CRM) is an example of a cross-functional system.
T
EAI leaves the functional systems and databases basically intact.
T
ERP systems integrate sales, orders, inventory, manufacturing, customer service, human resources, and accounting.
T
Either EAI or ERP can be used to integrate functional systems.
T
Enterprise application integration uses an interface to access the individual functional databases.
T
Enterprise resource planning software uses one database to connect the functional areas.
T
Functional silos are designed to work independently of one another.
T
Functional systems often lead to disjointed processes and increased expenses.
T
Grand & Toy has expanded its business model by offering services through the web in the last decade.
T
Isolated systems can lead to inefficiency and higher organizational costs.
T
Most organizations today have a mixture of functional and integrated systems.
T
The operations function handles order entry and inventory management.
T
Using MIS, one way to gain competitive advantage is to enhance the product or service by applying technological change.
T
With functional silos, management must query separate functional systems and integrate the data manually.
T
With functional systems, one of the biggest problems is duplicated data.
T
31) Functional systems in Porter's value chain are usually comprised of A) HR, accounting, operations, and sales. B) accounting, payroll, HR, and sales. C) operations, advertising, HR, and sales. D) accounting, advertising, payroll, and marketing E) primary activities and support activities.
A
42) When a company purchases an "Industry Standard Process" from a vendor like SAP, the company may benefit A) by gaining "best practices" it would otherwise have developed on its own. B) because employees will conform with the changes rapidly and be more efficient. C) because customers will demand lower prices. D) hardly ever. E) because the company will have a unique application that will generate competitive advantage.
A
44) The elimination of the middle layer in a supply chain is called A) disintermediation. B) intermediation. C) reintermediation re-intermediation. D) normalization. E) price elasticity.
A
45) ________ is a business process for managing all contacts between an organization and its suppliers. A) SRM B) CRM C) BRM D) KRM E) FRM
A
64) ________ combines functional systems by using software bridges to connect different functional systems. A) EAI B) ERP C) CRM D) SAP R/3 E) MIS
A
66) SAP is one of the leading vendors of ________ software. A) ERP B) SCM C) CRM D) DBMS E) CASE
A
67) Software that integrates sales, orders, inventory, manufacturing, customer service, human resources, and accounting is called A) ERP systems. B) vapour ware. C) DBMS. D) CAM. E) MPS.
A
76) Business process design projects are expensive and difficult because A) business processes are often complex. B) of legacy technology. C) of legal issues. D) poor business processes are inefficient. E) business processes are complex and poor business processes are inefficient.
A
82) Companies selling to other companies or to government need to fully A) integrate CRM and SRM systems. B) reach a wider audience. C) integrate ERP systems into their business models. D) become electronic exchanges. E) incorporate non-merchant ecommerce.
A
38) Which of the following is a rationale for business process design? A) Existing functional systems are flawed and should be improved. B) New and more efficient business processes that integrate the activities of all departments involved in a value chain should be created. C) Business processes are inefficient and do not integrate with other departments. D) Existing business processes are returning a good ROI and should be kept running like this. E) Existing systems do not support the value chain and therefore need to be improved.
B
41) When a company purchases an "Industry Standard Process" from a vendor like SAP, the company often has to A) lay off staff to conform to the new standards. B) change the way the company operates to conform to the software. C) buy more equipment to conform to the software needs. D) hire more staff to use the software more efficiently. E) wait years for a payback.
B
54) Sales management applications support A) the maximization of the value of the customer. B) sales to existing customers. C) network marketing. D) database conversion. E) prospecting for new customers.
B
58) Functional applications are sometimes called functional A) automation. B) silos. C) islands. D) confusion. E) integration.
B
60) Inventory management systems are usually found in the ________ functional area. A) sales and marketing B) operations C) human resources D) accounting and finance E) manufacturing
B
61) Payroll is an application that is traditionally run in the functional area of A) sales and marketing. B) human resources. C) manufacturing. D) operations. E) accounting and finance.
B
33) Systems that are designed to support activities across departmental boundaries are called A) calculation systems. B) functional systems. C) cross-departmental systems. D) inter-organizational systems. E) operating systems.
C
34) Systems that are used by two or more related companies are referred to as A) functional systems. B) calculation systems. C) inter-organizational systems. D) operating systems. E) departmental systems.
C
43) ERP systems handle A) mainly HR functions. B) mainly sales tracking. C) only accounting. D) sales and accounting. E) all of the company's functions.
D
47) ________ are used by non-manufacturers, such as distributors and retailers. A) Human resource systems B) Manufacturing systems C) Accounting systems D) Operations systems E) Marketing and sales systems
D
50) Which of the following is NOT a driver of supply chain management performance? A) Information B) Transportation C) Facilities D) Hardware E) Inventory
D
51) ERP uses A) integration to manage the five different databases in a typical company. B) pull-push production planning. C) customized programming to adapt to the purchaser's way of doing business. D) one centralized database. E) undocumented, brand new software.
D
59) Systems that span functional ________ are known as cross-functional systems. A) departments B) processes C) systems D) boundaries E) functions
D
63) Order entry is an application that is traditionally run in the functional area of A) human resources. B) accounting and finance. C) manufacturing. D) operations. E) sales and marketing.
D
72) An example of integrated, cross functional information system would be A) CASE. B) CAM. C) CAO. D) CRM. E) CAD.
D
55) Interorganizational systems that enable companies to efficiently handle the flow of goods from suppliers to customers are known as A) application software. B) disintermediating systems. C) competitive advantages. D) CRM systems. E) supply chain management systems.
E
62) The general ledger (GL) is an application that is traditionally run in the functional area of A) sales and marketing. B) manufacturing. C) operations. D) human resources. E) accounting and finance.
E
One way to gain competitive advantage using information systems is through business process.
T
Supplier relationship management is a business process for managing all contacts between the organization and its supplies.
T
