IST CHAP 8
________ focuses on studying customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service. A) Analytical CRM B) Sales force automation C) Operational CRM D) Collaborative CRM E) Integrated CRM
A) Analytical CRM
________ facilitate the sharing of information across the various departments of an organization in order to increase customer satisfaction and loyalty. A) Collaborative CRM systems B) Data warehousing systems C) Operational CRM systems D) Analytical CRM systems E) Data mining systems
A) Collaborative CRM systems
________ is a data presentation standard first specified by the World Wide Web Consortium, an international consortium of organizations whose purpose is to develop open standards for the Web. A) Extensible Markup Language B) Perl C) MySQL D) Active Server Pages E) Unified Modeling Language
A) Extensible Markup Language
________ includes the systems used to enable customer interaction and service. A) Operational CRM B) Integrated CRM C) Collaborative CRM D) A data warehouse E) Analytical CRM
A) Operational CRM
Which of the following statements is true about RFID systems? A) RFID scanning can be done at greater distances than bar code scanning. B) RFID information is readable depending on the entity's position. C) RFID tags contain less information than bar codes. D) All RFID tags are small and relatively inexpensive. E) RFID requires time-consuming hand scanning.
A) RFID scanning can be done at greater distances than bar code scanning.
________ is the use of electromagnetic energy to transmit information between a reader (transceiver) and a processing device. A) Radio frequency identification B) High capacity color barcoding C) Interferometric modulator display D) Photonic computing E) Electronic product coding
A) Radio frequency identification
________ refers not only to the ability to track products as they move through the supply chain but also to foresee external events. A) Supply chain visibility B) Demand planning and forecasting C) Supply chain analytics D) Supply network collaboration E) Supply chain efficiency
A) Supply chain visibility
Which of the following statements about an RFID passive tag is true? A) They are small and relatively inexpensive. B) They have a range up to 300 feet or more. C) They cost more than active tags. D) They have an internal battery source. E) They typically cost about $10.
A) They are small and relatively inexpensive.
Which of the following examples portrays the 24/7/365 operation of a CRM system? A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on B) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster C) tracking customer behavior over time that helps to identify future opportunities for product and service offerings D) integrated information that removes information handoffs, speeding both sales and support processes E) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on
Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products, but was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the product and legal damages of over $13 billion. This is an example of ________. A) a product recall B) lean manufacturing C) production control D) the bullwhip effect E) a green business
A) a product recall
Which of the following key elements of a supply chain execution includes information related to payment schedules, consignment, and ownership of products and materials? A) financial flow B) personnel flow C) information flow D) product flow E) material flow
A) financial flow
Production scheduling ________. A) focuses on the coordination of all activities needed to create the product or service B) focuses on delivering products or services to consumers as well as warehousing C) leads to the development of a sourcing plan D) focuses on the development of inventory estimates E) focuses on delivering products or services to consumers as well as invoicing and payment collection
A) focuses on the coordination of all activities needed to create the product or service
Which of the following portrays the individualized service benefit of a CRM system? A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively B) Web-based interfaces providing product information, sales status, support information, issue tracking, and so on C) integrating all information for all points of contact with the customers, so that all who interact with customers have the same view and understand current issues D) integrated information which removes information handoffs, which speeds both sales and support processes E) improved record keeping and efficient methods of capturing customer complaints, helping to identify and solve problems faster
A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
Supply chain planning begins with ________. A) product demand planning and forecasting B) distribution planning C) production scheduling D) inventory planning E) safety stock planning
A) product demand planning and forecasting
Which of the following is a component of the operational CRM system? A) sales force automation B) data warehouses C) ERP systems D) data mining and visualization E) business intelligence
A) sales force automation
Lee's department store uses the every day low prices strategy. This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers. Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed them to cut out external suppliers and middlemen, further driving down business costs. This implies that the competitive strategy used by this store would most likely focus on ________. A) supply chain efficiency B) supply chain visibility C) supply chain effectiveness D) operational CRM E) analytical CRM
A) supply chain efficiency
Define the three primary components of a comprehensive CRM system.
Answer: A comprehensive CRM system comprises three primary components: a. Operational CRM—includes systems for automating the fundamental business processes like marketing, sales, and support for interacting with the customer. b. Analytical CRM—includes systems for analyzing customer behavior and perceptions (e.g., quality, price, and overall satisfaction) in order to provide business intelligence. c. Collaborative CRM—includes systems for providing effective and efficient communication with the customer from the entire organization.
Briefly describe analytical CRM systems.
Answer: Analytical CRM focuses on analyzing customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service. Organizations that effectively utilize analytical CRM can more easily customize marketing campaigns from the segment level to even the individual customer. Such customized campaigns help to increase cross- or up-selling (i.e., selling more profitable products or identifying popular bundles of products and services tailored to different market segments) as well as retain customers by having accurate, timely, and personalized information. Analytical CRM systems also are used to spot sales trends by ZIP code, state, and region as well as specific target markets within those areas. Key technologies within analytical CRM systems include data mining, decision support, and other business intelligence technologies that attempt to create predictive models of various customer attributes.
List the ways in which collaborative CRM enhances communication.
Answer: Collaborative CRM enhances communication in the following ways: a. Greater customer focus—Understanding customer history and current needs helps to focus the communication on issues important to the customer. b. Lower communication barriers—Customers are more likely to communicate with the organization when personnel have complete information and when they utilize the communication methods and preferences of the customer. c. Increased information integration—All information about the customer as well as all prior and ongoing communication is given to all organizational personnel interacting with the customer; customers can get status updates from any organizational touch point.
Briefly describe the information flow element of a supply chain.
Answer: Information flow refers to the movement of information along the supply chain, such as order processing and delivery status updates. Information can flow up or down the supply chain as needed. The key element to the information flow is the complete removal of paper documents. Specifically, all orders, fulfillment, billing, and consolidation information is shared electronically. These paperless information flows save not only paperwork but also time and money. Additionally, because SCM systems use a central database to store information, all supply chain partners have access to most current information at all times.
Briefly describe the concept of portals in the context of supply chain management.
Answer: Portals, in the context of B2B supply chain management, can be defined as access points (or front doors) through which a business partner accesses secured, proprietary information that may be dispersed throughout an organization (typically using extranets). By allowing direct access to critical information needed to conduct business, portals can thus provide substantial productivity gains and cost savings for B2B transactions. Most companies are depending on a steady source of key supplies needed to produce their goods or services. For example, luxury restaurants require their produce to be consistently of high quality; similarly, car manufacturers need steel, paint, or electronic components in the right quantities, at the right quality and price, and at the right time. Thus, most companies are seeking long-term B2B relationships with a limited number of carefully selected suppliers—rather than one-time deals—and invest considerable efforts in selecting their suppliers or business partners; often, suppliers are assessed not only on product features such as price or quality but also on supplier's characteristics, such as trustworthiness, commitment, or viability. As a result, in contrast to B2C EC, where anyone can set up a customer account with a retailer, the suppliers or customers in B2B transactions are typically pre-screened by the business, and access to the company's extranet will be given depending on the business relationship (typically, after a review of the supplier's or buyer's application). To support different types of business relationships, portals come in two basic forms: supplier portals and customer portals. Supplier portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers. On the other end of the spectrum, customer portals automate the business processes involved in selling or distributing products from a single supplier to multiple buyers. B2B marketplaces are typically run by separate entities and connect multiple buyers and multiple suppliers.
Describe the advantages of radio frequency identification (RFID) over standard bar code technologies.
Answer: RFID systems offer advantages over standard bar code technologies in that RFID eliminates the need for line-of-sight reading. RFID also does not require time-consuming hand scanning, and RFID information is readable regardless of the entity's position or whether the tag is plainly visible. RFID tags can also contain more information than bar codes. Further, a company can program any information that it wants or needs onto an RFID tag, enabling a vast array of potential uses. Thus, it is possible to retrieve information about an entity's version, origin, location, maintenance history, and other important information and to manipulate that information on the tag. RFID scanning can also be done at greater distances than can bar code scanning.
List some of the enterprise-wide changes a successful CRM strategy must include.
Answer: Some of the enterprise-wide changes, a successful CRM strategy must include are: a. Policy and business process changes—Organizational policies and procedures need to reflect a customer-focused culture. b. Customer service changes—Key metrics for managing the business need to reflect customer-focused measures for quality and satisfaction as well as process changes to enhance the customer experience. c. Employee training changes—Employees from all areas—marketing, sales, and support—must have a consistent focus that values customer service and satisfaction. d. Data collection, analysis, and sharing changes—All aspects of the customer experience, such as prospecting, sales, support, and so on, must be tracked, analyzed, and shared to optimize the benefits of the CRM.
Explain the importance of supply chain analytics.
Answer: Supply chain analytics refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution. For example, a purchasing manager can identify the suppliers that are frequently unable to meet promised delivery dates. Being able to access key performance metrics can help to identify and remove bottlenecks, such as by switching suppliers, spreading orders over multiple suppliers, expediting shipping for critical goods, and so on.
Define supply chain planning and list the processes that are generally supported by SCP modules.
Answer: Supply chain planning (SCP) involves the development of various resource plans to support the efficient and effective production of goods and services. Four key processes that are generally supported by SCP modules include: a. Demand planning and forecasting b. Distribution planning c. Production scheduling d. Inventory and safety stock planning
Compare and contrast vendor-managed inventory model and traditional inventory model.
Answer: Vendor-managed inventory (VMI) is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels. To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data. Under a traditional inventory model, the manufacturer or retailer would manage these inventories themselves, sending out requests for additional items as needed. In contrast, under a VMI model, the manufacturer or retailer shares real-time sales data with their suppliers, who maintain inventory levels based on preestablished agreements. Such arrangements can help optimize the manufacturer's inventory, both saving costs and minimizing stockout situations (thus enhancing customer satisfaction); the supplier, in turn, benefits from the intense data sharing, which helps produce more accurate forecasts, reduces ordering errors, and helps prioritize the shipment of goods.
________ refers to using multiple communication channels to support the communication preferences of users, such as the Web, the company's Facebook page, industry blogs, telephone, and so on. A) Business intelligence B) Customer interaction center C) Enterprise marketing management D) Execution management E) Sales force automation
B) Customer interaction center
________ includes tags for data such as annual and quarterly reports, Securities and Exchange Commission filings, general ledger information, and net revenue and accounting schedules. A) Extensible Application Markup Language B) Extensible Business Reporting Language C) Extensible Access Control Markup Language D) Enterprise Mashup Markup Language E) Extensible Rights Markup Language
B) Extensible Business Reporting Language
________ help create the mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history. A) Data warehouses B) Operational CRM systems C) Analytical CRM systems D) Integrated CRM systems E) Collaborative CRM systems
B) Operational CRM systems
________ can be used just about anywhere a unique identification system might be needed, such as on clothing, pets, cars, keys, missiles, or manufactured parts. A) HTML tags B) RFID tags C) Spintronics D) XML tags E) High capacity color barcodes
B) RFID tags
________ is the first component of an operational customer relationship management that supports a broad range of business processes, including tracking and managing customer history and preferences, account and contact management, and order processing and tracking. A) Enterprise marketing management B) Sales force automation C) Data warehousing D) Execution management E) Customer service and support
B) Sales force automation
________ is the extent to which a company's supply chain is focusing on maximizing customer service with lesser focus on procurement, production, and transportation costs. A) Supply chain visibility B) Supply chain effectiveness C) Supply chain analytics D) Supply chain efficiency E) Supply network collaboration
B) Supply chain effectiveness
Which of the following is the main objective of information systems that focus on improving supply chains? A) discouraging vendor-managed inventory systems B) accelerating product development and innovation C) discouraging sustainable production processes D) decentralizing the organizations E) encouraging the bullwhip effect
B) accelerating product development and innovation
Using analytical tools to optimally utilize labor, materials, and equipment is a part of the ________ step of supply chain planning. A) demand forecasting B) production scheduling C) distribution planning D) inventory planning E) transportation scheduling
B) production scheduling
The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer. A) distribution resource planning B) supply chain C) procurement D) demand chain E) value network
B) supply chain
The key use of the manufacturing execution module of supply chain management is to ________. A) forecast and plan anticipated demand for products B) support production processes taking into account capacity and material constraints C) ensure that the materials required for production are available where needed, when needed D) assign optimal safety stock and target stock levels in all inventories in the supply network E) support receiving, storing, and picking of goods in a warehouse
B) support production processes taking into account capacity and material constraints
________ refers to systems for providing effective and efficient communication with the customer from the entire organization. A) Analytical CRM B) Sales force automation C) Collaborative CRM D) Operational CRM E) Business intelligence
C) Collaborative CRM
________ refers to systems that automate requests, complaints, product returns, and information requests. A) Data warehouse B) Enterprise marketing management C) Customer service and support D) Execution management E) Sales force automation
C) Customer service and support
________ focuses on delivering products or services to consumers as well as warehousing, delivering, invoicing, and payment collection. A) Product demand planning B) Production planning C) Distribution planning D) Safety stock planning E) Inventory planning
C) Distribution planning
________ tools help a company in the execution of the CRM strategy by improving the management of promotional campaigns. A) Business intelligence B) Sales force automation C) Enterprise marketing management D) Customer interaction center E) Execution management
C) Enterprise marketing management
________ allow(s) designers of Web documents to create their own customized tags, enabling the definition, transmission, validation, and interpretation of data between applications and between organizations. A) MySQL B) Active Server Pages C) Extensible Markup Language D) Perl E) Unified Modeling Language
C) Extensible Markup Language
Which of the following statements is true about product flow, a key element of supply chain execution? A) It refers to the ability to track products as they move through the supply chain. B) It refers to the movement of information along the supply chain, such as order processing and delivery status updates. C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer. D) It tracks a one-way flow of products from producers to consumers but cannot process returns or customer refunds. E) It refers primarily to the movement of financial assets throughout the supply chain.
C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer.
________ is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels. A) Just-in-case manufacturing B) Scan-based trading C) Vendor-managed inventory D) Lean manufacturing E) Just-in-time
C) Vendor-managed inventory
Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer. A) operational CRM B) integrated CRM C) analytical CRM D) collaborative CRM E) sales force automation
C) analytical CRM
One major problem affecting supply chains are ripple effects referred to as the ________. A) backflush effect B) multiplier effect C) bullwhip effect D) incremental effect E) stockwhip effect
C) bullwhip effect
Supply chain execution ________. A) involves the development of a sourcing plan B) refers to the use of key performance indicators to monitor production C) involves the management of product flow, information flow, and financial flow D) refers to the ability to track products as they move through the supply chain E) involves the development of demand forecast
C) involves the management of product flow, information flow, and financial flow
Computer maker, Dell, realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a ________. A) scan-based trading system B) customer-managed inventory system C) just-in-time inventory management system D) vendor-managed inventory system E) just-in-case inventory management system
C) just-in-time inventory management system
Inventory and safety stock planning ________. A) leads to the development of the overall demand forecast B) focuses on the coordination of all activities needed to create the product or service C) leads to the development of a sourcing plan D) focuses on delivering products or services to consumers as well as warehousing E) leads to the development of a transportation schedule
C) leads to the development of a sourcing plan
Which of the following business processes can be enhanced by the analytical CRM system? A) sales forecasting and performance analyses B) account and contact management C) price, quality, and satisfaction analysis of competitors D) customer history and preferences management E) order processing and tracking
C) price, quality, and satisfaction analysis of competitors
Which of the following examples explains the improved planning benefit of using a CRM system? A) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster B) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively. C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies D) tracking customer behavior over time that helps to identify future opportunities for product and service offerings E) integrated information that removes information handoffs, speeding both sales and support processes
C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies
Comptel, a world leader in computer hardware, differentiates itself from its competitors by providing excellent after-sales service. This implies that the competitive strategy used by Comptel would most likely focus on ________. A) supply chain analytics B) supply chain visibility C) supply chain effectiveness D) supply network collaboration E) supply chain efficiency
C) supply chain effectiveness
Which of the following is the key use of the distribution planning module of supply chain management? A) to ensure that the materials required for production are available when needed B) to forecast and plan anticipated demand for products C) to optimize the allocation of available supply to meet demand D) to support production processes taking into account capacity and material constraints E) to support receiving, storing, and picking of goods in a warehouse
C) to optimize the allocation of available supply to meet demand
Which of the following statements about just-in-time strategies is true? A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale. B) Companies using this strategy allow the suppliers to manage the manufacturer's inventory levels based on preestablished service levels. C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies. D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production. E) The manufacturer or retailer using this strategy shares real-time sales data with their suppliers, who maintain inventory levels based on preestablished agreements.
D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
________ is an XML-based specification for publishing financial information. A) Extensible Rights Markup Language B) Extensible Application Markup Language C) Extensible Access Control Markup Language D) Extensible Business Reporting Language E) Enterprise Mashup Markup Language
D) Extensible Business Reporting Language
________ is the extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs, sometimes by sacrificing excellent customer service. A) Supply chain analytics B) Supply chain effectiveness C) Supply network collaboration D) Supply chain efficiency E) Supply chain visibility
D) Supply chain efficiency
Which of the following statements is true about information flow, a key element of supply chain execution? A) A key element of this aspect of supply chain execution is to foresee external events. B) Information can only flow up the supply chain. C) It refers to the use of key performance indicators to monitor performance of the entire supply chain. D) The key element to the information flow is the complete removal of paper documents. E) It refers primarily to the movement of financial assets throughout the supply chain.
D) The key element to the information flow is the complete removal of paper documents.
Which of the following statements about an RFID active tag is true? A) They are inexpensive, with prices starting at 10 cents. B) They have a range up to 40 feet. C) They are small compared to passive tags. D) They include a battery. E) They are less expensive as compared to passive tags. D
D) They include a battery.
Which of the following statements about vendor-management inventory (VMI) is true? A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies. B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed. C) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production. D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data. E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.
D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
Which of the following is a component of the analytical CRM system? A) enterprise marketing management B) sales force automation C) technologies to facilitate communication D) data mining and visualization E) customer service and support
D) data mining and visualization
Demand planning and forecasting leads to the development of the overall ________. A) sourcing plan B) transportation schedule C) production plan D) demand forecast E) safety stock plan
D) demand forecast
La Belle Inc. introduced a new line of accessories for teenaged girls last season. Following its immense popularity with the targeted group, the company anticipated high sales this season. It ordered raw materials accordingly, and even ensured that they had sufficient inventory to meet excess demand, if any. However, the success of the new line turned out to be a fad, as the teens soon turned to other products offered by competing brands, and La Belle's sales declined. This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales. This is an example of ________. A) the multiplier effect B) hindsight bias C) product recall D) the bullwhip effect E) safety stock planning
D) the bullwhip effect
Which of the following is a main objective of customer relationship management applications focusing on downstream information flows? A) to track global spending on suppliers B) to encourage the bullwhip effect C) to develop demand forecasts D) to portray a positive corporate image E) to collaborate demand and production planning
D) to portray a positive corporate image
Distribution planning leads to the development of the overall ________. A) production plan B) safety stock plan C) demand forecast D) transportation schedule E) sourcing plan
D) transportation schedule
MaxSteel Inc., has been supplying steel to a well-known car manufacturer, Agis Corp., for the past 3 years. Concerned employees at MaxSteel can directly access Agis Corp.'s inventory and sales information via electronic data interchange. This allows MaxSteel to monitor Agis Corp.'s inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following, if true, would most strengthen Agis' supply chain strategy? A) Agis Corp.'s management decides to take strong measures for increasing their safety stock of all raw materials. B) Agis Corp. is taking measures to add wholesalers and retailers into their supply chain. C) Agis Corp. has a strong desire to purchase MaxSteel in order to reduce dependency. D) Agis Corp. is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain. E) Agis Corp. is taking measures to ensure that the information shared with MaxSteel will not be shared outside their organization.
E) Agis Corp. is taking measures to ensure that the information shared with MaxSteel will not be shared outside their organization.
Which of the following is an example of supply chain efficiency? A) Federal Express focuses on providing superior service. B) Caterpillar has high spare parts availability. C) Dr. Pepper introduces a new flavor of soft drink. D) Rolex positions itself as a prestige brand. E) Apple sources its raw materials in ways that keep its costs low.
E) Apple sources its raw materials in ways that keep its costs low.
________ refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution. A) Demand forecasting B) Supply network collaboration C) Supply chain visibility D) Supply chain efficiency E) Supply chain analytics
E) Supply chain analytics
________ involves the development of various resource plans to support the efficient and effective production of goods and services. A) Supply chain visibility B) Supply chain analytics C) Supply chain execution D) Supply chain networking E) Supply chain planning
E) Supply chain planning
Which of the following statements is true about XML? A) XML is not standardized. B) XML specifies a particular formatting. C) XML cannot be tailored to share any data across applications over the Web. D) XML tags are incapable of supplying interactive content to a Web page. E) XML instructs systems as to how information should be interpreted and used
E) XML instructs systems as to how information should be interpreted and used
The key use of the order promising module of supply chain management is to ________. A) work with partners across the supply network to improve accuracy of demand forecasts, reduce inventory buffers, and improve customer service B) monitor key performance indicators to assess performance across the supply chain C) manage logistics between company locations or from company to customers, taking into account transportation modes and constraints D) assign optimal safety stock and target stock levels in all inventories in the supply network E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times
E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times
Inventory and safety stock planning leads to the development of a(n) ________. A) outsourcing plan B) production plan C) transportation schedule D) demand forecast E) sourcing plan
E) sourcing plan
Which of the following is a component of the collaborative CRM system? A) sales force automation B) data mining and visualization C) enterprise resource planning systems D) enterprise marketing management E) technologies to facilitate communication
E) technologies to facilitate communication
Which of the following portrays the improved product development benefit of a CRM system? A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively B) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on C) integrated information that removes information handoffs, speeding both sales and support processes. D) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster E) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
E) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
Although RFID tags contain more information than bar codes, they require time-consuming hand scanning. T/F
FALSE
Customer service and support, the second component of an operational CRM, refers to systems that support the day-to-day sales activities of an organization. T/F
FALSE
In an operational CRM, marketing, sales, and support personnel see only current interactions with the customer depending on where it occurred within the organization. T/F
FALSE
Just-in-time is a business model in which the suppliers manage the manufacturer's inventory based on preestablished service levels. T/F
FALSE
Key technologies within collaborative CRM systems include data mining, decision support, and other business intelligence technologies that attempt to create predictive models of various customer attributes. T/F
FALSE
One major problem affecting supply chains are ripple effects referred to as the multiplier effect. T/F
FALSE
Operational customer relationship management system refers to the systems used for providing effective and efficient communication with the customer from the entire organization. T/F
FALSE
Rather than engaging in conversations with their customers, organizations need to start seeing customers as an audience. T/F
FALSE
Supply chain effectiveness is the extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs sometimes by sacrificing excellent customer service. T/F
FALSE
Supply chain efficiency is the extent to which a company's supply chain is focusing on maximizing customer service regardless of procurement, production, and transportation costs. T/F
FALSE
Supply chain execution involves the development of various resource plans to support the efficient and effective production of goods and services. T/F
FALSE
Supply chain management is primarily used to optimize business processes within the organization. T/F
FALSE
The efficiency of an SCM system is independent of the data entered into it. T/F
FALSE
The only drawback of XML is that it is not customizable. T/F
FALSE
A collaborative customer relationship management system supports customer communication and collaboration with the entire organization, thus providing more streamlined customer service with fewer handoffs. T/F
TRUE
Analytical CRM analyzes customer behavior and thus provides the business intelligence necessary to identify new opportunities and to provide superior customer service. T/F
TRUE
Collaborative customer relationship management enhances communication by understanding customer history and current needs. T/F
TRUE
Customer relationship management allows organizations to focus on driving revenue as well as on reducing costs, as opposed to emphasizing only cost cutting. T/F
TRUE
Customer relationship management applications are commonly integrated with a comprehensive enterprise resource planning implementation to leverage internal and external information to better serve customers. T/F
TRUE
Customer relationship management systems collect data that can be mined to discover the next product line extension that consumers covet. T/F
TRUE
EDI refers to computer-computer communication without any human intervention. T/F
TRUE
Sales force automation improves the effectiveness of the marketing function by providing an improved understanding of market conditions, competitors, and products. T/F
TRUE
Social media applications enable consumers to interact with each other in various ways, greatly facilitating the spreading of information as well as misinformation. T/F
TRUE
Supply chain management improves the coordination of suppliers, product or service production, and distribution. T/F
TRUE
Supply chain management systems allow users to make trade-offs between efficiency and effectiveness for individual components or raw materials. T/F
TRUE
The flow of materials from suppliers to customers can be described as a supply network. T/F
TRUE
The primary use of extranets in organizations is for managing their supply chains. T/F
TRUE
Using EMM tools can help integrate various promotional campaigns such that the right messages are sent to the right people through the right channels. T/F
TRUE
