OMIS Final
Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher. a. Offshore factory b. Server factory c. Source factory d. Outpost factory
A
The following are all examples of lean warehousing capabilities EXCEPT: a. Decreased assembly operations b. Greater emphasis on crossdocking c. Reduced lot sizes and shipping quantities d. Increased automation
A
The following facility location technique uses fixed and variable costs to analyze potential locations: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model
A
The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as: a. Service Capacity b. Capacity Utilization c. Productivity Potential d. Service Throughput
A
The transportation legislation that created the Interstate Commerce Commission (ICC) was which of the following: a. Interstate Commerce Act b. Motor Carrier Act c. Granger Laws d. Interstate Initiation Act
A
What is the abbreviation for a truck trailer which is placed on a flat railcar that would then be pulled by a train engine? a. TOFC b. COFC c. NVOCC d. TTFC
A
When a number of interconnected companies and institutions from a particular field are located in a single geographic location, that location is referred to is a(n): a. Business cluster b. Metroplex c. Regional business center d. Industrial point
A
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as: a. Event-based marketing b. Segmented selling c. Personal holiday marketing d. Extreme segmentation marketing
A
When integrating new CRM modules, it is important that compatible CRM modules are linked to a(n): a. Data warehouse b. Data knowledge system c. Sales activity management system d. Sales force automation system
A
A right-to-work law allows employees to decide for themselves whether or not they want to join or financially support a union.
True
A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.
True
A basic strategy for managing capacity when the firm utilizes a constant amount of capacity regardless of demand variations is: a. Level demand strategy b. Differentiation demand strategy c. Chase demand strategy d. Baumol's demand strategy
A
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.30 90 80 80 Currency Stability 0.40 80 85 80 Proximity to Market 0.30 80 80 80 a. Site A b. Site B c. Site C d. All sites are equally attractive
A
According to the text, currently the three largest private warehouse operators in North America are: a. United Parcel Service, Wal-Mart and Sears Holding Corp. b. United Parcel Service, Target and U.S. Army c. Target, Microsoft and U.S. Army d. Wal-Mart, Ford Motor Corp. and U.S. Army
A
According to the text, in logistics, a "perfect order" occurs when: a. The Seven R Rule is satisfied b. A customer is successfully cross-selled c. Customer churn does not occur d. Clickstream is minimized
A
Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 6 customers per hour, determine the mean interarrival time. a. 10 minutes b. 6 minutes c. 60 minutes d. 14 minutes
A
Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus
A
First-come-first-served is an example of a(n): a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. single-phase queue design
A
Since many companies do not have the knowledge, resources (money/people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n): a. ASP b. Customer Support Specialist Firm c. DSS d. Marketing Facilitator
A
Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user-facility located in another area or region? a. Consolidation warehouse b. Private warehouse c. Breakbulk warehouse d. Public warehouse
A
Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Utilizing fewer facilitating products b. Utilizing technological tools like computers and automated systems c. Cross-training and sharing employees d. Using customers to provide services
A
You are determining the productivity of your company's service. In your calculation, the inputs used consist of the sum of your company's labor, materials, energy, and capital costs. This can also be referred to as: a. Multiple-factor productivity b. Productivity utilization c. Multi-input efficiency d. Extended productivity
A
You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area. This is an example of: a. Target marketing b. Cross-selling c. Geographic marketing d. Personalized customer communication
A
A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system
B
According to the textbook, the largest ocean containerships can carry how many twenty-foot containers? a. Between 3,000 and 5,000 b. Between 5,000 and 8,000 c. Between 8,000 and 10,000 d. Over 10,000
D
According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory
B
According to the textbook, which of the following statements is TRUE? a. CRM stands for customer resource management b. ASP stands for application service provider c. CRM stands for centralized resource management d. ASP stands for accelerated shipment process
B
All of the following are requirements for designing and implementing a successful CRM program EXCEPT: a. Support from the firm's top executive b. Knowledge of the tools available to aid in CRM c. Adherence to a static CRM program d. Continuous awareness of customers' changing requirements
B
If the average service rate is 15 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes. a. zero b. 0.49 c. 0.28 d. 0.62
B
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination: a. Sourcing center b. Hub and spoke c. Air and ground d. LTL consolidation
B
Real time location systems (RTLS) are used for the following type of transportation: a. Motor carriers b. Rail Carriers c. Air carriers d. Water carriers
B
Some companies import components, use them in the production of their end items, and ultimately export them to other countries. If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n): a. Duty-free Territory b. Foreign Trade Zone c. International Cross Docking Zone d. International Processing Center
B
The Bruntland Commission defines ____ as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. a. Lean manufacturing b. Sustainable development c. Six Sigma manufacturing d. Progressive design
B
The Wal-Mart effect is best described by which of the following? a. As large retailers locate in communities, the put smaller companies our of business b. Information technologies have allowed large retailers to maintain good productivity growth rates c. Wal-Mart's use of supplier capacity has made it difficult for other companies to find Suppliers d. The growth of large retailers has had a negative impact on the environment
B
The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Piggy backing b. Crossdocking c. Transshipping d. Customs Brokering
B
The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.) a. 0.167 b. 0.75 c. 0.125 d. 1.33
B
The element of a CRM program in which a customer's lifetime value is calculated is referred to as: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination
B
The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination
B
The three generic competitive strategies are: a. profit-based, nonprofits, and free services b. cost leadership, differentiation, and focus c. manufacturing, service, and retail d. mass-production, make-to-order, and services
B
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $50,000 $10 Site B $20,000 $30 a. Site A is the desired location if the production rate is 1000 units per year b. The breakeven point for these two locations is 1500 units per year c. Site B is the desired location if the production rate is 2000 units per year d. The breakeven point for these two locations is 500 units per year
B
What does LTL stand for in the transportation industry? a. Logistical Train-car Lift b. Less-Than-Truckload c. Large Truck Leasing d. Local Train Logistics carriers
B
When studying queuing models, a customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Balked b. Reneged c. Stalled d. Disposed
B
Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Segmenting customers c. Preserving a traditional sales force that communicates with the supply-chain via a traditional paper document/contract system d. All of these
B
Which of the following customer service elements can be classified as examples of post-transaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure
B
Which of the following is similar to a travel agent for cargo since they provide services like documentation completion, special rate handling, and customs clearance, in addition to their consolidating of small shipments to fill entire truckloads? a. Transportation Broker b. Freight Forwarder c. Shippers' Association d. Integrated Logistics Service Provider
B
Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes. a. Offshore factory b. Server factory c. Source factory d. Outpost factory
B
All of the following are considered components of fixed costs EXCEPT: a. Cost of land b. Equipment c. Insurance d. Utilities
D
Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customers may consider paying higher prices? a. Focus Strategy b. Differentiation Strategy c. Cost Leadership Strategy d. Exclusivity Strategy
B
Which of the following trade agreements was set up after WWII and originally consisted of six countries? a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. Association of African Markets (AAM) d. Southern Common Market (MERCOSUR)
B
Which of the following was NOT mentioned in the textbook as being one of the more popular logistics management software applications? a. Transportation management systems b. Freight management systems c. Warehouse management systems d. Returns management systems
B
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of: a. Customer churn b. Posttransaction customer service c. Customer management d. Pretransaction customer service
B
Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers. This is referred to as: a. Event-based marketing b. Relationship marketing c. Customer churn d. Customer preference marketing
B
1. The supply chain management element that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements is also referred to as: a. Operations b. Transportation planning c. Logistics d. Procurement
C
According to the text, FOB destination pricing is typically preferred for all of the following EXCEPT: a. High-value shipments b. Buyer has little transportation expertise c. Buyer is purchasing a reoccurring order d. Small shipments
C
According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as: a. Market positioned strategy b. Supply positioned strategy c. Product positioned strategy d. Intermediately positioned strategy
C
According to the text, the primary elements of all queuing systems include all of the following EXCEPT: a. Input process b. Queue characteristics c. Output process d. Service characteristics
C
According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy
C
All of the following are considered components of variable costs EXCEPT: a. Labor b. Materials c. Property Taxes d. Utilities
C
All of the following are included in the five dimensions of service quality EXCEPT: a. Reliability b. Responsiveness c. Reasonability d. Assurance
C
All of the following are required elements for the development of an effective CRM initiative EXCEPT: a. Segmenting customers b. Customer value determination c. Utilization of MRP d. Personalizing customer communications
C
CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called: a. Customer profitability determination b. Customer-base retention initiative c. Customer defection analysis d. Customer clickstream analysis
C
Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union. These laws are called: a. Employee freedom acts b. Free trade laws c. Right-to-work laws d. Sanctioned union acts
C
David Maister's First Rule of Service is: a. It always takes longer than you think to perform the service b. You can't please all the customers all the time c. Satisfaction = perception − expectation d. Under-promise and over-deliver
C
Examples of regional trade agreements include all of the following EXCEPT: Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. Association of African Markets (AAM) d. Southern Common Market (MERCOSUR)
C
Service provided by multiple servers acting in parallel is referred to as: a. Multi-platform servicescape b. Multiple-phase queuing system c. Multiple-channel queuing system d. Multi-delivery servicescape
C
The average transaction at an automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in line? (Choose the closest answer.) a. 4.000 Customers b. 0.300 Customers c. 3.000 Customers d. 0.375 Customers
C
The first major transportation regulation in the U.S. was which of the following: a. Interstate Commerce Act b. Motor Carrier Act c. Granger Laws d. Interstate Initiation Act
C
The following facility location technique uses quantitative and qualitative dimensions and is subject to interpretation and bias by the analyst: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model
C
Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a: a. Clickstream b. QR code c. Data warehouse d. Social media site
C
Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC
C
Which of the following items would be considered a facilitating product? a. The automobiles washed by the car wash b. The suits being cleaned by the dry cleaner c. The tools used to fix your car at an auto shop d. All of these
C
Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance? a. Air Carriers b. Rail Carriers c. Water Carriers d. Motor Carriers
C
Which of the following regional trade agreements is paired with the appropriate region of the world? a. NAFTA − Southeast Asian Nations b. COMESA − United States, Canada, and Mexico c. MERCOSUR − Argentina, Brazil, Paraguay, and Uruguay d. EU − Middle East nations, not including Israel
C
Which of the following would be considered an act of deregulation? a. Reed Bullwinkle act − legalized rate bureaus or conferences b. Granger law − Established maximum rates, prohibited discrimination, and forbade mergers for railroads. c. Trucking Industry Regulatory Reform Act − Motor carriers freed from filing rates with the Interstate Commerce Commission d. Freight Forwarders Act − Allowed Interstate Commerce Commission control over freight forwarders; controlled entry, rates, and services.
C
Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a(n): a. Offshore factory b. Source factory c. Server Factory d. Lead Factory
C
The optimal capacity utilization for an organization would be 100%.
False
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 65 90 Currency Stability 0.50 80 90 80 Proximity to Market 0.30 80 80 80 a. Site A b. Site B c. Site C d. All sites are equally attractive
D
A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento, Phoenix, Cincinnati, and Atlanta. The average inventory levels for the four warehouses are 8000 units, 10,000 units, 10,000 units, and 8000 units, respectively. They plan on moving all of their inventory to one warehouse in Memphis. Using the square root rule, what will be the required average inventory level at the new central Memphis warehouse required to maintain the system's present 98% customer service level? (Choose the closest answer.) a. 9000 b. 18000 c. 20000 d. 24500
D
A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as: a. Consolidation forwarder b. Load broker c. Transportation broker d. Freight forwarder
D
According to the textbook, a performance measurement type for CRM would include: a. Customer loyalty b. Customer Satisfaction c. Average sales revenue per customer d. All of these
D
Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called: a. Service Shrink b. Deming's Decline c. State Utility d. Baumol's Disease
D
If λ = 6 CUSTOMERS/HOUR and μ = 11 CUSTOMERS/HOUR, in a single server model, find the probability that there will be exactly 1 person in LINE. a. 0.162 b. 0.297 c. 0.248 d. 0.135
D
Public warehouses can provide a wide range of services. Which of the following is NOT one of the services offered by public warehouses? a. Breakbulk b. Assembly c. Repackaging d. High security shipment
D
The World Economic Forum creates International Competitive Rankings that are ranked on their Pillars of Competitiveness. How many Pillars of Competitiveness does the World Economic Forum have? a. Three b. Five c. Ten d. Twelve
D
The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as: a. Reliability b. Responsiveness c. Reasonability d. Assurance
D
The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Target marketing b. Segmented selling c. Clickstream selling d. Cross-selling
D
The type of factory which is the source of product and process innovation and competitive advantage for the entire organization is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory
D
The use of quick response codes (QR Codes) to retrieve marketing information is a type of: a. Geographic marketing b. Target marketing c. Customer churn d. Mobile marketing
D
Which of the following carriers typically transports goods for the company that owns the carrier, they are not subject to economic regulation, and since the fleets are rather large the cost of transport is very likely less than if the company had hired another company to provide the service? a. Common carrier b. Exempt Carrier c. Contract Carrier d. Private Carrier
D
Which of the following customer service elements can be classified as examples of pre-transaction elements? a. Salesperson politeness and order processing capabilities b. Warranty repair capabilities and customer complaint resolution c. Product returns and information about the operation of the product purchased d. Customer service policies and the company's choice of organizational structure
D
Which of the following is NOT a characteristic of cost-of-service pricing? a. Prices are established based on fixed and variable costs of transportation b. Prices vary based on volume and distance c. Prices tend to rise as shipping distance increases d. Carriers price their services at the highest levels the markets will bear
D
Which of the following is NOT consistent with a decentralized warehousing system? a. Higher safety stocks required b. Shorter lead times c. Lower transportation fees d. Lower total operating costs
D
Which of the following is a factor in choosing a location? a. Currency Stability b. Proximity to Markets c. Access to Suppliers d. All of these
D
Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level? a. Reengineering and/or automating call centers based on past call center data b. Developing web sites that allow customers to access their personal accounts and/or information like hours of operation, store locations, and product information c. Utilizing CRM programs to administer personalized surveys based specific customer segments d. All of these
D
Which of the following is an example of a person that would be considered to provide a Pure Service? a. Attorney/Lawyer b. Management Consultant c. Musical Entertainer d. All of these
D
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these
D
Which of the following legislative acts is NOT in support of transportation deregulation? a. Railroad Revitalization and Regulatory Reform Act b. Staggers Rail Act c. FAA Authorization Act d. Reed-Bulwinkle Act
D
Which of the following organizations would be considered an example of a global service? a. FedEx b. Deutsche Bank c. Wal-Mart International d. All of these
D
Which of the following secures the right of employees to decide whether or not to join or financially support a union? a. Union shop laws b. Union planning forums c. Ethical union initiatives d. Right-to-work laws
D
Which of the following statements about consumer focused programs/initiatives is TRUE? a. Customers want additional support services and other offerings that add value to their initial product or service purchases b. CRM programs are simple in that they involve treating customers properly and making them feel valued c. CRM programs are complex in that they involve identifying all customers, their needs, and then creating a system geared towards completely satisfying the customer. d. All of these
D
Which of the following would be considered a quality of life factor? a. Education b. Arts, culture, and recreation c. Community safety d. All of these
D
Which of the following would result in an INCREASE in productivity? a. The value/amount of the inputs used increases and the value/amount of outputs decreases b. The value/amount of the inputs used increases and the value/amount of outputs stays the same c. The value/amount of the inputs used stays the same and the value/amount of outputs decreases d. The value/amount of the inputs used stays the same and the value/amount of outputs increases
D
Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertailment facilities.
False
Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system
D
A country that imposes high tariffs encourages foreign-based companies to import goods.
False
A lead factory is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products.
False
A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.
False
A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.
False
A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.
False
According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.
False
According to the text, with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.
False
According to the textbook, the five basic modes of transportation are motor, rail, air, water, and cyberspace.
False
According to the textbook, two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.
False
Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.
False
Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.
False
Cloud computing is a term used to describe how a customer navigates a website.
False
Companies that provide on-demand applications are often referred to as data warehouses.
False
If an organization wanted to set up a facility in an area near a number of advanced suppliers, competitors, and research facilities in order to have access to current information on materials, components, and technologies the organization would likely set up a source factory.
False
In cost-of-service pricing, the cost of shipping increases proportionally with distance.
False
International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: foreign freight forwarders, NVOCCs, FTZs, and TOFCs.
False
Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.
False
Service organizations need to consider the fact that the services they provide are not consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.
False
The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.
False
The Department of Transportation was created by the 1920 Transportation Act.
False
The European Union (EU) created the world's largest free trade area.
False
The five dimensions of service quality include: Reliability, durability, performance, aesthetics, and availability.
False
The objectives of any CRM initiative should be focused on what the company can reasonable achieve.
False
Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.
False
When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.
False
While a well planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few.
False
While high speed trains in the United States are commonly utilized to provide quick delivery of product, countries like Japan and France are struggling to develop a competitive high-speed rail system.
False
While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location, because of the Internet, the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.
False
While transportation regulation and deregulation both have their supporters, proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.
False
A shipment that originates in Los Angeles and is placed inside a sealed standardized 8' by 8' by 20' container attached to a truck trailer and is moved from Los Angeles to Phoenix where the container is then moved to a railcar for final shipment to Denver where it would then be loaded onto another truck trailer would be considered an intermodal shipment since the container remained sealed throughout the shipment.
True
A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze this situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.
True
According to the text, customer relationship management refers to building and maintaining profitable long-term customer relationships.
True
According to the text, global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.
True
According to the text, poor planning is typically the cause for most unsuccessful CRM initiatives.
True
According to the text, the primary objective of an offshore factory is to take advantage of low labor costs.
True
As customers navigate through a website CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.
True
Because air transport is so expensive the best cargo candidates for air travel are those cargo shipments with a high cost to weight ratio.
True
Because integrated supply chains require good suppliers to act as good supply-chain customer partners, CRM programs should include first-tier customer training and education to ensure proper use of purchase products.
True
China's economy is shifting from labor-intensive industries to arrears like marketing and the production of high technology products that typically provide higher levels of value.
True
Cross-selling is a term used when customers are sold additional products as the result of an initial purchase.
True
Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.
True
Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.
True
Facility location is a business decision that will ultimately impact issues like the cost of supplies, facilities, and materials, as well as lead times and customer service levels.
True
Future trends in CRM include coping with the delicate issue of privacy, utilization of social media, and utilization of cloud computing.
True
Generally speaking, rail carriers are less expensive than motor carriers.
True
In a franchise, the franchisee invests some of their own money, while paying a percentage of sales to the franchiser.
True
In general, companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.
True
In most services, customers are either directly or indirectly involved in the production of the service itself.
True
In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.
True
In order to provide more comprehensive delivery service, some freight-only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.
True
It is best to integrate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can help managers make more informed customer-focused decisions.
True
Limitations of air carrier transport include cost and airport accessibility.
True
Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.
True
Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.
True
Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers. The more attractive customer markets are developing in China.
True
Private clouds allow corporate users to internally manage their data centers.
True
Private warehouses refer to warehouses that are owned by the firm storing the goods.
True
Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.
True
Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.
True
Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.
True
Service facilities are normally decentralized.
True
Since the 1950s, the percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.
True
Some of the e-commerce related services that transportation companies offer nowadays to remain competitive include allowing customers to plan itineraries, get freight quotes, and track shipments online.
True
Some of the ways customers evaluate the customer service capabilities of an organization are through their experiences with human response call centers, automated response call centers, and consumer web sites.
True
The WTO is the only global international organization dealing with the rules of trade between nations.
True
The primary difference between FOB origination and FOB destination is that FOB destination requires that the supplier legal own the product until it reaches the destination; in FOB origination the buyer takes ownership immediately and is thus responsible for arranging delivery.
True
The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at precisely the right time to the desired location.
True
Through the use permission marketing programs, customers are allowed to select the type of communications companies can make with them. Actually, customers can even choose to be completed eliminated from both e-mail and traditional mailing lists.
True
When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.
True
When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.
True
When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.
True
When a supplier provides a price quote to a buyer for supplies that includes transportation to the buyer's location this is known as FOB destination pricing, or free on board to the shipment's destination.
True
When companies sell products both online and in traditional retail stores this is called a mixed internet distribution strategy.
True
When trying to gauge a nation's competitiveness a manager may want to consult one of two primary world competitiveness rankings, the World Competitiveness Yearbook published by IMD and The Global Competitiveness Report prepared by the World Economic Forum.
True
While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.
True
While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood, California because companies can easily collaborate, compete, and share knowledge, some high-tech clusters have developed in areas with emerging economies such as Mexico, Singapore, and India.
True
While many developing countries are attractive to companies seeking out low labor costs, there are other important factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facilities' location.
True
With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.
True