Chapter 9 BIS

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PRM provides a firm and its distributors trade information and distributes leads about customers.
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true
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Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers.
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false
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The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers
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false
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Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.
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true
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Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain
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false
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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
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true
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Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
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false
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In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes
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true
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) Inefficiencies in a supply chain are primarily caused by inaccurate information
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true
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Dell Inc. is an example of a push-based model
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false
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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
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true
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All CRM packages contain modules for PRM and ERM.
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false
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Major CRM application software vendors include Oracle and SAP
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true
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) Cross-selling is the marketing of complementary products to customers
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true
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Analytical CRM uses tools to analyze customer data collected from the firm’s customer touch points and from other sources
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true
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Enterprise systems require fundamental changes in the way the business operates.
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true
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From your reading of the chapter’s opening case, NVIDIA implemented new information systems in order to achieve which of the following business objectives? A) customer and supplier intimacy B) operational excellence C) survival D) improved decision making
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improved decision making
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Which of the following is not an example of the benefits enterprise systems provide to firms? A) Products are shipped to stores more quickly. B) When products are ordered, the manufacturing and logistics teams are notified immediately. C) There is more accurate sales information for managers to analyze. D) The cost of information systems falls, making the firm more productive.
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the cost of information systems falls, making the firm more productive
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Enterprise software is built around thousands of predefined business processes that reflect A) the firm’s organization. B) industry goals. C) best practices. D) cutting edge workflow analyses.
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best practices
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Which of the following is not true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software is expressly built to allow companies to mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance
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enterprise software is expressly built to allow companies to mimic their unique business practices
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You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Select the functions of the system you wish to use. B) Select the business processes you wish to automate. C) Map the company’s business processes to the software’s business processes. D) Map the software’s business processes to the company’s business processes
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select the functions of the system you wish to use
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When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with A) configuration tables. B) Web services. C) data dictionaries. D) middleware.
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configuration tables
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In order to achieve maximum benefit from an enterprise software package, a business A) customizes the software to match all of its business processes. B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software’s business processes. D) selects only the software that best matches its existing business processes
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changes the way it works to match the software’s business processes
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) Supply chain complexity and scale increases when firms A) move to globalization. B) manage the procurement, manufacturing, and distribution functions themselves. C) produce products and services that coordinate with hundreds or more firms and suppliers. D) modify their existing workflows to comply with supply-chain management systems.
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produce products and services that coordinate with hundreds or more firm suppliers
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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 A) distribution channel. B) supply chain. C) value chain. D) marketing channel.
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supply chain
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Components or parts of finished products are referred to as A) upstream materials. B) raw materials. C) secondary products. D) intermediate products.
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intermediate products
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A company’s suppliers, supplier’s suppliers, and the processes for managing relationships with them is the A) supplier’s internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain.
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upstream portion of the supply chain
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A company’s organizations and processes for distributing and delivering products to the final customers is the A) supplier’s internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain
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downstream portion of the supply chain
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Uncertainties arise in any supply chain because of A) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events
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unforseeable events
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Which of the following is not one of the key challenges facing global supply chains? A) geographical distances B) increased costs C) time zones D) cultural differences
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increased costs
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Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) demand; continual C) upstream; downstream D) planning; execution
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planning, execution
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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. A) demand B) delivery C) planning D) execution
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planning
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Supply chain planning systems A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders
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identify the transportation mode to use for product delivery
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Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) distribution management B) replenishment planning C) demand planning D) order planning
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demand planning
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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. A) demand B) delivery C) planning D) execution
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execution
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Capabilities of supply chain execution systems would not include A) identifying the optimal transportation mode. B) tracking the flow of finished goods. C) managing materials. D) managing warehouse operations
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identifying the optimal transportation mode
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Which of the following is not one of the main challenges in implementing enterprise applications? A) high cost of software B) loss of ownership of data C) complex to install and configure D) dependence on third-party vendors
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loss of ownership of data
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A build-to-order supply-chain model is also called a ________ model. A) supply-based B) demand-driven C) replenishment-driven D) push-based
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demand-driven
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Which of the following is not a potential “switching cost”? A) employee training B) upgrading software C) new hardware D) new documentation
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upgrading software
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The business value of an effective supply chain management system includes all of the following except A) faster time to market. B) cost reduction. C) supply matched to demand. D) increased inventory levels
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increased inventory levels
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A ________ is a method of interaction with a customer, such as telephone or customer service desk. A) point of presence B) touch point C) sales point D) client channel
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touch point
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Which of the following would not be considered a contact point? A) e-mail B) Web site C) Intranet D) retail store
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intranet
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Customer relationship management systems typically provide software and online tools for sales, customer service, and A) marketing. B) account management. C) advertising. D) public relations
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marketing
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SFA modules in CRM systems would provide tools for A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information
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managing sales prospect and contact information
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Customer service modules in CRM systems provide tools for A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information.
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assigning and managing customer service requests
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Marketing modules in CRM systems would provide tools for A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information
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identifying profitable and unprofitable customers
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Selling a customer with a checking account a home improvement loan is an example of A) operational CRM. B) direct marketing. C) cross-selling. D) cross-channel promotions
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cross-selling
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________ management is an important capability for customer service processes that is found in most major CRM software products. A) Returns B) Lead C) Account D) Events
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returns
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Which of the following is an important capability for sales processes that is found in most major CRM software products? A) returns management B) lead management C) channel promotions management D) events management
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lead management
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Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications. A) operational CRM B) analytical CRM C) operational SCM D) analytical SFA
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analytical CRM
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Operational CRM applications include tools for A) identifying buying patterns. B) calculating CLTV. C) salesforce automation. D) pinpointing unprofitable customers.
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salesforce automation
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Analytical CRM applications A) include tools for marketing automation. B) provide consolidated data for operational CRM applications. C) are based on data consolidated from operational CRM applications. D) provide customer-facing applications
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are based on data consolidated from operational CRM applications
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Analyzing customer buying patterns is an example of A) CLTV. B) analytical CRM. C) operational CRM. D) demand planning.
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analytical CRM
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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? A) churn rate B) CLTV C) cost per lead D) cost per sale
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CLTV
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The measurement of the number of customers who stop using or purchasing products or services from a company is called A) switching costs. B) churn rate. C) CLTV. D) switch rate.
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churn rate
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Which of the following statements about enterprise applications is not true? A) Enterprise applications require organizational learning. B) Enterprise applications introduce “switching costs.” C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications are best implemented when few changes in business processes are required.
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enterprise applications are best implemented when few changes in business processes are required
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Which of the following is not an example of next-generation enterprise applications? A) open-source solutions B) social CRM C) solutions incorporating SCM D) solutions incorporating SOA
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solutions incorporating SCM
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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 B) ERP systems C) middleware D) legacy systems
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e-business suites
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The bullwhip effect is countered by A) globalization. B) disintermediation. C) implementing an SCM. D) reducing information uncertainty.
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reducing information uncertainty

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