Clean Chapter 9 - Managing the Information Systems Function
50) In a pull-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.
TRUE
53) Total supply chain costs in some industries approach 75 percent of the total operating budget.
TRUE
61) Which of the following would not be considered a contact point?
C) Intranet
40) The difference between push- and pull-based models is summarized by which of the following slogans?
C) Make what we sell, not sell what we make
7) To achieve the maximum benefit of a new ERP system, Tasty Baking implemented an enterprise system by:
C) customizing less than 5 percent of the enterprise system processes
26) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.
D) planning; execution
33) A supply chain driven by actual customer orders is called a ________ model.
D) pull-based
36) The bullwhip effect can be countered by:
D) reducing information uncertainty
10) Enterprise systems are built around thousands of predefined business processes.
TRUE
6) Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business?
A) Configuration tables
23) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?
A) Safety stock
39) A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system.
A) execution
31) Supply chain execution systems provide all of the following functions except:
A) generating demand forecasts for products
24) 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
64) Customer relationship management systems typically provide software and online tools for sales, customer service, and:
A) marketing
72) Which of the following customer relationship management applications provides analysis of customer data?
B) Analytical CRM
74) Which of the following tools is used to analyze customer buying patterns?
B) Analytical CRM
41) Walmart's continuous replenishment system is an example of a ________ model.
B) pull-based
22) Why isn't overstocking warehouses an effective solution for a problem of low availability?
D) It increases inventory costs
19) Which of the following refers to a company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them?
D) Upstream portion of the supply chain
8) Coca-Cola implemented enterprise software from Oracle that enabled it to achieve all of the following except:
D) reducing the number of employees
93) Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers.
D) web services
91) Which of the following is not an example of next-generation enterprise applications?
E) JDA Software
63) ________ software modules seek to enhance collaboration between a company and its selling partners.
E) PRM
77) ________ 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.
E) SFA
94) Using social networking tools to converse with customers is called:
B) social CRM.
12) Extensive customization of enterprise software reduces the overall cost of implementation.
FALSE
44) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
TRUE
17) 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/an:
B) supply chain
60) A ________ is a method of interaction with a customer, such as telephone or customer service desk.
B) touch point
29) Which supply chain planning function determines how much product is needed to satisfy all customer demands?
C) Demand planning
62) ________ software modules deal with setting employee objectives, performance, and compensation.e objectives,
C) ERM
9) Enterprise systems improve management decision making in all the following ways except:
C) improving forecasts of consumer behavior
32) A supply chain driven by forecasts of consumer demand follows a ________ model.
C) push-based
73) Operational CRM applications include tools for all of the following except:
E) calculating CLTV
43) The downstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
TRUE
48) Before the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.
TRUE
67) Customer service modules in CRM systems provide tools for:
A) assigning and managing customer service request
68) Marketing modules in CRM systems provide tools for all of the following except:
A) assigning and managing customer service requests
37) As they move through the supply chain, ________ are transformed into finished products and shipped to retailers and customers.
A) raw materials
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?
B) ERP systems
1) From your reading of the chapter's opening case, Skullcandy chose enterprise resource planning software from which of the following ERP vendors?
B) SAP
38) The total time it takes to complete a business process, from start to finish, is called its ________ time.
B) cycle
30) 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?
D) Supply chain execution system
69) Selling a customer with a checking account a home improvement loan is an example of:
E) cross-selling
35) The business value of an effective supply chain management system includes all of the following except:
E) increased inventory levels
11) An enterprise system can rewrite enterprise system software to support existing business processes.
TRUE
83) Analytical CRM uses tools to analyze customer data collected from the firm's customer touch points and from other sources.
TRUE
59) From your reading of the LG Electronics case study, the company implemented JDA software solutions to solve all of the following problems except:
D) inability to forecast orders from retailers
75) 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?
B) Customer lifetime value
25) 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.
B) bullwhip
21) Uncertainties in the supply chain often lead to:
B) increases in inventory across all tiers
4) Which of the following is not true about enterprise systems?
C) Enterprise software is expressly built to allow companies to support their existing business practices
70) Major CRM products typically have all of the following service capabilities except:
E) order management
27) Which of the following enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product?
E) Supply chain planning system
95) Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad-hoc analysis, as part of the application.
E) business intelligence
65) SFA modules in CRM systems provide tools for all of the following except:
E) managing customer service requests
3) Enterprise software is built around thousands of predefined business processes that reflect:
C) best practices.
18) In the supply chain, components or parts are referred to as:
D) intermediate products
51) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
FALSE
98) Enterprise applications are based on organization-wide definitions of data.
TRUE
28) Supply chain planning systems perform all of the following functions except:
E) track the physical status of goods
46) The bullwhip effect leads to declining inventory costs across the entire supply chain.
FALSE
47) 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
79) All CRM packages contain modules for PRM and ERM.
FALSE
96) Enterprise systems do not require fundamental changes in the way the business operates.
FALSE
49) Inefficiencies in a supply chain are primarily caused by inaccurate or untimely information.
TRUE
20) Distribution and delivery of products to retailers is part of the:
A) downstream portion of the supply chain
92) 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
71) Which of the following is an important capability for sales processes that is found in most SFA modules in major CRM software products?
B) Lead management
76) The measurement of the number of customers who stop using or purchasing products or services from a company is called:
B) churn rate
78) ________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.
C) Operational
66) CRM systems help businesses achieve which of the following business objectives?
E) Enhanced customer intimacy
90) Which of the following statements about enterprise applications is not true?
E) Enterprise applications are best implemented when few changes in business processes are required
5) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?
E) Select the functions of the system you wish to use
45) Firms in the supply chain develop safety stocks in order to increase the efficiency of their operations.
FALSE
42) Supply chain management systems are a type of enterprise system.
TRUE
52) Procter & Gamble (P&G) experienced a growth in its Pampers diapers inventory due to information distortions in the supply chain.
TRUE
80) Major CRM application software vendors include Oracle, SAP, and Salesforce.com.
TRUE
81) Cross-selling is the marketing of complementary products to customers.
TRUE
82) CRM software can help organizations identify high-value customers for preferential treatments.
TRUE
84) Churn rate is an important indicator of the growth or decline of a company's customer base.
TRUE
97) Switching costs of enterprise systems occur when changing software vendors.
TRUE
99) SCM systems require multiple organizations to share information and business processes.
TRUE
34) Concurrent supply chains are made possible by which technology?
B) The Internet
