MIS Chapter 9

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?

CLTV

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

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.

ERM

Which of the following statements about enterprise applications is not true?

Enterprise applications are best implemented when few changes in business processes are required.

Which of the following is not true about enterprise systems?

Enterprise software is expressly built to allow companies to mimic their unique business practices.

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

Which of the following would not be considered a contact point?

Intranet

Why is overstocking warehouses not an effective solution for a problem of low availability?

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.

PRM

________ management is an important capability for customer service processes that is found in most major CRM software products.

Returns

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

Select the functions of the system you wish to use.

Which of the following is not an example of the benefits enterprise systems provide to firms?

The cost of information systems falls, making the firm more productive

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 changes in the way the business operates.

True

Firms can use social networking sites 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 by inaccurate information.

True

Major CRM application software vendors include Oracle and SAP

True

PRM provides a firm 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 expenses for many businesses and in some industries approach 75 percent of the total operating budget.

True

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

analytical CRM

Analyzing customer buying patterns is an example of

analytical CRM.

Analytical CRM applications

are based on data consolidated from operational CRM applications

Customer service modules in CRM systems provide tools for

assigning and managing customer service requests.

Enterprise software is built around thousands of predefined business processes that reflect

best practices.

In order to achieve maximum benefit from an enterprise software package, a business

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

The measurement of the number of customers who stop using or purchasing products or services from a company is called

churn rate.

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with

configuration tables.

Selling a customer with a checking account a home improvement loan is an example of

cross-selling.

Which supply chain planning function determines how much product is needed to satisfy all customer demands?

demand planning

A build-to-order supply-chain model is also called a ________ model

demand-driven

A company's organizations and processes for distributing and delivering products to the final customers is the

downstream portion of the supply chain.

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.

e-business suites

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.

execution

Supply chain planning systems

identify the transportation mode to use for product delivery.

Marketing modules in CRM systems would provide tools for

identifying profitable and unprofitable customers.

Capabilities of supply chain execution systems would not include

identifying the optimal transportation mode.

From your reading of the chapter's opening case, NVIDIA implemented new information systems in order to achieve which of the following business objectives?

improved decision making

Which of the following is not one of the key challenges facing global supply chains?

increased costs

The business value of an effective supply chain management system includes all of the following except

increased inventory levels.

Components or parts of finished products are referred to as

intermediate products.

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.

just-in-time

Which of the following is an important capability for sales processes that is found in most major CRM software products?

lead management

Which of the following is not one of the main challenges in implementing enterprise applications?

loss of ownership of data

SFA modules in CRM systems would provide tools for

managing sales prospect and contact information.

Customer relationship management systems typically provide software and online tools for sales, customer service, and

marketing.

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.

planning

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.

planning; execution

Supply chain complexity and scale increases when firms

produce products and services that coordinate with hundreds or more firms and suppliers.

A supply chain driven by actual customer orders or purchases follows a ________ model.

pull-based model

The bullwhip effect is countered by

reducing information uncertainty

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

safety stock

Operational CRM applications include tools for

salesforce automation.

Which of the following is not an example of next-generation enterprise applications?

solutions incorporating SCM

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

supply chain.

A ________ is a method of interaction with a customer, such as telephone or customer service desk.

touch point

Uncertainties arise in any supply chain because of

unforeseeable events.

Which of the following is not a potential "switching cost"?

upgrading software

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the

upstream portion of the supply chain.