Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers

the question.

1) Enterprise systems provide value both by increasing ________ efficiency and by providing

firm-wide information to help managers make better decisions. 1) _______

A) technical B) accounting C) operational D) financial

2) Which of the following would NOT be considered a contact point? 2) _______

A) Web site B) retail store C) intranet D) e-mail

3) You have been asked to implement enterprise software for a manufacturer of kitchen

appliances. What is the first step you should take? 3) _______

A) Select the business processes you wish to automate.

B) Select the functions of the system you wish to use.

C) Map the software's business processes to the company's business processes.

D) Map the company's business processes to the software's business processes.

4) A build-to-order supply-chain model is also called a ________ model. 4) _______

A) replenishment-driven B) push-based

C) demand-driven D) supply-driven

5) Which supply chain planning function determines how much product is needed to satisfy all

customer demands? 5) _______

A) order planning B) replenishment planning

C) distribution management D) demand planning

6) Supply chain ________ systems manage the flow of products through distribution centres and

warehouses to ensure that products are delivered to the right locations in the most efficient

manner. 6) _______

A) delivery B) demand C) execution D) planning

7) Enterprise application vendors have created ________ to make their own customer

relationship management, supply chain management, and enterprise systems work closely

together with each other. 7) _______

A) e-business suites B) middleware

C) ERP systems D) legacy systems

8) The ________ is tamed by reducing uncertainties about demand and supply when all

members of the supply chain have accurate and up-to-date information. 8) _______

A) downstream portion B) internal supply chain

C) upstream portion D) bullwhip effect

9) A company's suppliers, supplier's suppliers, and the processes for managing relationships

with them is the 9) _______

A) upstream portion of the supply chain. B) downstream portion of the supply chain.

C) supplier's internal supply chain. D) external supply chain.

10) Which of the following is an important capability for sales processes that is found in most

major CRM software products? 10) ______

A) events management B) lead management

C) returns management D) channel promotions management

11) Susan is using a new system at work. She finds that it really has improved her effectiveness

in dealing with employee issues such as setting objectives, employee performance management,

performance-based compensation, and employee training. Susan is using what type of module?

11) ______

A) PRM B) SCM C) CRM D) ERM

12) Firms use ________ to improve coordination among their internal supply chain processes.

12) ______

A) bit nets B) internet C) intranets D) extranets

13) Selling a customer with a checking account a home improvement loan is an example of 13)

______

A) direct marketing. B) cross-selling.

C) cross-channel promotions. D) operational CRM.

14) Mary's job consists of the organizations and processes for distributing and delivering

products to the final customers. She works for a manufacturing plant. Which portion of the

supply chain does she deal with? 14) ______

A) downstream portion B) internal supply chain

C) bullwhip effect D) upstream portion

15) Linda's job consists of processes for transforming materials, components, and services

furnished by their suppliers into finished products or intermediate products (components or

parts) for their customers and for managing materials and inventory. She works for a

manufacturing plant. Which portion of the supply chain does she deal with? 15) ______

A) downstream portion B) upstream portion

C) internal supply chain D) bullwhip effect

16) Which of the following is NOT true about enterprise systems? 16) ______

A) Enterprise system data have standardized definitions and formats that are accepted by the

entire organization.

B) Enterprise systems help firms respond rapidly to customer requests for information or

products.

C) Enterprise software includes analytical tools to evaluate overall organizational performance.

D) Enterprise software is expressly built to allow companies to mimic their unique business

practices.

17) Marketing modules in CRM systems would provide tools for 17) ______

A) managing sales prospect and contact information.

B) sales quote generation.

C) identifying profitable and unprofitable customers.

D) managing an advice telephone line.

18) Uncertainties arise in any supply chain because of 18) ______

A) inefficient or inaccurate MIS.

B) poor integration between systems of suppliers, manufacturers, and distributors.

C) inaccurate or untimely information.

D) unforeseeable events.

19) From your reading of the Procter & Gamble case study, the company implemented a multi-

echelon inventory optimization system to achieve which of the main six business objectives? 19)

______

A) improved decision making B) operational excellence

C) customer and supplier intimacy D) survival

20) Capabilities of supply chain planning systems would NOT include 20) ______

A) order planning.

B) transport operations.

C) advanced scheduling and manufacturing planning.

D) demand planning.

21) Supply chain complexity and scale 21) ______

A) result when firms implement full-scale supply-chain management systems.

B) affect both very small companies and large, global corporations.

C) result when firms produce complex products and services.

D) were difficult to address before the Internet.

22) John is looking at the business processes that are critical in his firm. The processes include

general ledger, accounts payable, accounts receivable, fixed assets, cash management and

forecasting, product-cost accounting, cost-centre accounting, asset accounting, tax accounting,

credit management, and financial reporting. Which of the business processes supported by

enterprise software is most critical for this firm? 22) ______

A) sales and marketing processes processes B) financial and accounting processes

C) manufacturing and production processes D) human resources processes

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

23) ______

A) It does not speed product time to market. B) It increases inventory costs.

C) It increases sales costs. D) It is an inefficient use of raw materials.

24) ________ modules use many of the same data, tools, and systems as CRM to enhance

collaboration between a company and its selling partners. 24) ______

A) SCM B) PRM C) SFA D) ERM

25) From your reading of the Allen Company case study, what enabled the firm to take

maximum advantage of the new enterprise software's capabilities? 25) ______

A) limiting changes to the software

B) willingness to normalize data

C) enforcing strict project management standards

D) custom reporting and workflow features

26) Minor fluctuations in retail sales for a product can create ________ inventory for distributors,

manufacturers, and suppliers. 26) ______

A) less B) finished goods C) excess D) raw material

27) 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 27) ______

A) marketing channel. B) supply chain.

C) distribution channel. D) value chain.

28) Operational CRM applications include tools for 28) ______

A) calculating CLTV. B) identifying buying patterns.

C) pinpointing unprofitable customers. D) sales force automation.

29) ________ software deals with employee issues that are closely related to CRM, such as

setting objectives, employee performance management, performance-based compensation, and

employee training? 29) ______

A) PRM B) ERP C) Enterprise D) ERM

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

30) ______

A) pull-based model B) push-based

C) replenishment-driven D) build-to-stock

31) Betty is using a new system at work. She finds that it really has improved her effectiveness

in using data, tools, and systems to enhance collaboration between a company and its selling

partners. Betty is using what type of module? 31) ______

A) CRM B) PRM C) ERM D) SCM

32) Donald is looking at the business processes that are critical in his firm. The processes include

order processing, quotations, contracts, product configuration, pricing, billing, credit checking,

incentive and commission management, and sales planning. Which of the business processes

supported by enterprise software is most critical for this firm? 32) ______

A) sales and marketing processes processes B) manufacturing and production processes

C) financial and accounting processes D) human resources processes

33) In addition to reducing costs, supply chain management systems help increase ________.

33) ______

A) taxes B) expenses C) sales D) inventory

34) Analytical CRM applications 34) ______

A) provide consolidated data for operational CRM applications.

B) are based on data warehouses consolidated from operational CRM applications.

C) include tools for marketing automation.

D) provide customer-facing applications.

35) From your reading of the Allen Candy Company case study, the firm implemented new

information systems in order to achieve which of the main six business objectives? 35) ______

A) customer and supplier intimacy

B) new products, services, and business models

C) growth

D) improved decision making

36) Helen's job is to deal with the company’s suppliers, the suppliers’ suppliers, and the

processes for managing relationships with them. She is a purchaser for a department store chain.

Which portion of the supply chain does she deal with? 36) ______

A) internal supply chain B) downstream portion

C) bullwhip effect D) upstream portion

37) 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? 37) ______

A) churn rate B) CLTV C) cost per sale D) cost per lead

38) Supply chain planning systems 38) ______

A) identify the transportation mode to use for product delivery.

B) track the financial information involving all parties.

C) track the physical status of goods.

D) track the status of orders.

39) Wayne is looking at the business processes that are critical in his firm. The processes include

procurement, inventory management, purchasing, shipping, production planning, production

scheduling, material requirements planning, quality control, distribution, transportation

execution, and plant and equipment maintenance. Which of the business processes supported by

enterprise software is most critical for this firm? 39) ______

A) human resources processes B) financial and accounting processes

C) sales and marketing processes processes D) manufacturing and production processes

40) 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.

40) ______

A) execution B) planning C) delivery D) demand

41) ________ software is built around thousands of predefined business processes from all

functional areas. 41) ______

A) Enterprise B) Process management

C) PRM D) CRM

42) Analyzing sales representative and customer service representative productivity is an

example of 42) ______

A) analytical CRM. B) CLTV.

C) operational CRM. D) demand planning.

43) 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. 43) ______

A) replenishment B) exponential C) ripple D) bullwhip

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

chain ________ systems. 44) ______

A) planning; execution B) upstream; downstream

C) push; pull D) demand; continual

45) Customer relationship management applications dealing with the analysis of customer data

to provide information for improving business performance best describes ________ applications.

45) ______

A) SFA B) analytical CRM

C) operational CRM D) SCM

46) ________ integrate(s) multiple applications from multiple business functions, business units,

or business partners to deliver a seamless experience for the customer, employee, manager, or

business partner and provide a greater degree of cross-functional integration than the traditional

enterprise applications. 46) ______

A) Service platforms B) PRM software

C) ERP suites D) SFA software

47) When tailoring a particular aspect of a system to the way a company does business,

enterprise software can provide the company with 47) ______

A) middleware. B) data dictionaries.

C) configuration tables. D) project workbooks.

48) Components or parts of finished products are referred to as 48) ______

A) upstream materials. B) secondary products.

C) intermediate products. D) raw materials.

49) 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. 49) ______

A) stockless B) bullwhip C) safety stock D) just-in-time

50) The measurement of the number of customers who stop using or purchasing products or

services from a company is called 50) ______

A) switch rate. B) switching costs. C) churn rate. D) CLTV.

51) Supply chain management systems require ________ organizations to share information and

business processes. 51) ______

A) manufacturing B) retail C) multiple D) zero

52) Which of the following statements about enterprise applications is NOT true? 52) ______

A) Enterprise applications are based on organization-wide definitions of data.

B) Enterprise applications are best implemented when few changes in business processes are

required.

C) The total implementation cost of a large system might amount to four to five times the initial

purchase price for the software.

D) Enterprise applications introduce "switching costs."

53) ________ modules deal with issues such as setting objectives, employee performance

management, and performance-based compensation. 53) ______

A) SFA B) ERM C) PRM D) SCM

54) Customer relationship management systems typically provide software and online tools for

sales, customer service, and 54) ______

A) marketing. B) public relations.

C) advertising. D) account management.

55) SFA modules in CRM systems would provide tools for 55) ______

A) managing sales prospect and contact information.

B) capturing prospect and customer data.

C) assigning and managing customer service requests.

D) identifying profitable and unprofitable customers.

56) Companies with effective supply chain management systems can expect 56) ______

A) cost reduction.

B) reduced inventory levels.

C) improved customer service and responsiveness.

D) all of the above.

57) Firms use ________ to coordinate supply chain processes shared with their business

partners. 57) ______

A) intranets B) extranets C) internet D) bit nets

58) A ________ is a method of interaction with a customer, such as telephone or customer

service desk. 58) ______

A) point of presence B) client channel

C) sales point D) touch point

59) A company's organizations and processes for distributing and delivering products to the

final customers is the 59) ______

A) upstream portion of the supply chain. B) downstream portion of the supply chain.

C) external supply chain. D) supplier's internal supply chain.

60) Customer service modules in CRM systems provide tools for 60) ______

A) identifying profitable and unprofitable customers.

B) assigning and managing customer service requests.

C) managing sales prospect and contact information.

D) sales quote generation.

61) Concurrent supply chains are made possible by which technology? 61) ______

A) just-in-time supply-chain technologies B) pull-based technology

C) supply chain management systems D) Internet technology

62) Which of the following traditional solutions enables manufacturers to deal with

uncertainties in the supply chain? 62) ______

A) demand planning B) just-in-time strategies

C) safety stock D) continuous replenishment

63) Bobby is looking at the business processes that are critical in his firm. The processes include

personnel administration, time accounting, payroll, personnel planning and development,

benefits accounting, applicant tracking, time management, compensation, workforce planning,

performance management, and travel expense reporting. Which of the business processes

supported by enterprise software is most critical for this firm? 63) ______

A) human resources processes B) sales and marketing processes processes

C) manufacturing and production processes D) financial and accounting processes

64) 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 best describes 64) ______

A) ERP systems. B) process management software.

C) groupware. D) application software.

65) In order to achieve maximum benefit from an enterprise software package, a business 65)

______

A) uses only the processes in the software that match its own processes.

B) customizes the software to match all of its business processes.

C) selects only the software that best matches its existing business processes.

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

66) Which of the following is an important capability for service processes that is found in most

major CRM software products? 66) ______

A) account management B) lead management

C) events management D) returns management

SHORT ANSWER. Write the word or phrase that best completes each statement or answers

the question.

67) Goods start out as ________ and, as they move through the supply chain, are transformed

into intermediate products, and finally, into finished products. 67) _____________

68) ________ CRM includes customer-facing applications such as tools for sales force

automation, call centre and customer service support, and marketing automation. 68)

_____________

69) Inaccurate information can cause minor fluctuations in demand for a product to be ________

as one moves further back in the supply chain. 69) _____________

70) Supply chain management systems require multiple organizations to ________ information

and business processes. 70) _____________

71) One recurring problem in supply chain management is the ________, in which information

about the demand for a product gets distorted as it passes from one entity to the next across the

supply chain. 71) _____________

72) ________ uses many of the same data, tools, and systems as customer relationship

management to enhance collaboration between a company and its selling partners. 72)

_____________

73) There are versions of enterprise software packages that can be obtained through ________

providers over the Web. 73) _____________

74) Many, especially ________ companies, still share product information over the phone, via e-

mail, or through faxes. 74) _____________

75) ________ is the marketing of complementary products to customers. 75) _____________

76) Enterprise software includes ________ tools for using data captured by the system to

evaluate overall organizational performance. 76) _____________

77) A firm would use ________ tables provided by the software to tailor a particular aspect of

the system to the way it does business. 77) _____________

78) ________ can integrate information from enterprise applications and disparate in-house

legacy systems, presenting it to users through a Web interface so that the information appears to

be coming from a single source. 78) _____________

79) ________ systems manage the flow of products through distribution centres and warehouses

to ensure that products are delivered to the right locations in the most efficient manner. 79)

_____________

80) Minor fluctuations in retail sales for a product can create ________ inventory for distributors,

manufacturers, and suppliers. 80) _____________

81) Enterprise systems provide value both by increasing ________ efficiency and by providing

firm-wide information to help managers make better decisions. 81) _____________

82) Enterprise-wide ________ provide a greater degree of cross-functional integration than the

traditional enterprise applications. 82) _____________

83) ________ typically span greater geographic distances and time differences than domestic

supply chains and have participants from a number of different countries. 83) _____________

84) ________ 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. 84) _____________

85) ________ is built around thousands of predefined business processes that reflect best

practices. Table 12-1 describes some of the major business processes supported by enterprise

software. 85) _____________

86) Firms use ________ to coordinate supply chain processes shared with their business

partners. 86) _____________

87) ________ systems enable the firm to model its existing supply chain, generate demand

forecasts for products, and develop optimal sourcing and manufacturing plans. 87)

_____________

88) ________ in the supply chain, such as parts shortages, underutilized plant capacity, excessive

finished goods inventory, or high transportation costs, are caused by inaccurate or untimely

information. 88) _____________

89) Coca Cola, for instance, implemented a SAP enterprise system to ________ and coordinate

important business processes in 200 countries. 89) _____________

90) Enterprise systems help firms respond ________ to customer requests for information or

products. 90) _____________

91) The ________ is 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. 91) _____________

92) Supply chain management systems provide the kind of information that helps members of

the supply chain make better ________ and scheduling decisions. 92) _____________

93) In a(n) ________ strategy, components arrive exactly at the moment they are needed, and

finished goods are shipped as they leave the assembly line. 93) _____________

94) With new flows of information made possible by Web-based tools, supply chain

management can more easily follow a(n) ________ model. 94) _____________

95) ________ is used to determine how much product a business needs to make to satisfy all of

its customers' demands. 95) _____________

96) ________ software deals with employee issues that are closely related to CRM, such as

setting objectives, employee performance management, performance-based compensation, and

employee training. 96) _____________

97) Some firms experienced enormous operating problems and losses when they first

implemented enterprise applications because they did not understand how much organizational

________ was required. 97) _____________

98) Supply chain management may need to reflect foreign government regulations and ________

differences. 98) _____________

99) Large companies with many operating units in ________ locations have used enterprise

systems to enforce standard practices and data so that everyone does business the same way

worldwide. 99) _____________

100) Firms use ________ to improve coordination among their internal supply chain processes.

100) ____________

101) Nike’s contract suppliers do not ________ runners from scratch. 101) ____________

102) The bullwhip is tamed by reducing uncertainties about demand and supply when all

members of the supply chain have accurate and ________ information. 102) ____________

103) Before the ________, supply chain coordination was hampered by the difficulties of making

information flow smoothly among disparate internal supply chain systems for purchasing,

materials management, manufacturing, and distribution. 103) ____________

104) Enterprise software is unusually complex, and extensive ________ may degrade system

performance, compromising the information and process integration that are the main benefits of

the system. 104) ____________

105) ________ consists of a set of interdependent software modules that support basic internal

business processes for finance and accounting, human resources, manufacturing and production,

and sales and marketing. 105) ____________

106) In addition to reducing costs, supply chain management systems help increase ________.

106) ____________

107) A ________ (also known as a contact point) is a method of interaction with the customer,

such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or

retail store. 107) ____________

108) Enterprise systems supply some integration of internal supply chain processes but they are

not designed to deal with ________ supply chain processes. 108) ____________

109) The ________ portion of the supply chain consists of the organizations and processes for

distributing and delivering products to the final customers. 109) ____________

110) The ________ measures the number of customers who stop using or purchasing products or

services from a company. 110) ____________

111) The ________ portion of the supply chain includes the company’s suppliers, the suppliers’

suppliers, and the processes for managing relationships with them. 111) ____________

112) There are versions of enterprise software packages ________ for small businesses. 112)

____________

113) With a Web-based ________ application, all supply chain members communicate through a

Web-based system. 113) ____________

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

114) Enterprise systems feature a set of integrated software modules and a central database that

enables data to be shared by many different business processes and functional areas throughout

the enterprise. 114) _____

115) The upstream portion of the supply chain consists of the organizations and processes for

distributing and delivering products to the final customers. 115) _____

116) In the pre-Internet environment, supply chain coordination was hampered by the

difficulties of making information flow smoothly among different internal supply chain

processes. 116) _____

117) If the enterprise software does not support the way the organization does business,

companies can rewrite some of the software to support the way their business processes work.

117) _____

118) If a manufacturer had perfect information about exactly how many units of product

customers wanted, when they wanted them, and when they could be produced, it would be

possible to implement a highly efficient just-in-time strategy. 118) _____

119) Partner relationship management (PRM) uses many of the same data, tools, and systems as

customer relationship management to enhance collaboration between a company and its selling

partners. 119) _____

120) Companies can use configuration tables provided by the enterprise software to tailor a

particular aspect of the system to the way it does business 120) _____

121) Firms use extranets to improve coordination among their internal supply chain processes.

121) _____

122) Supply chain execution systems enable the firm to generate demand forecasts for a product

and to develop sourcing and manufacturing plans for that product. 122) _____

123) In a push-based model, actual customer orders or purchases trigger events in the supply

chain. 123) _____

124) Enterprise systems help customers respond rapidly to a firm's requests for information or

products. 124) _____

125) Dell Inc. is an example of a push-based model. 125) _____

126) Intranets can be used to integrate information from isolated business processes within the

firm to help them manage their internal supply chains. 126) _____

127) There are versions of enterprise software that can be obtained through software service

providers over the Web. 127) _____

128) Supply chain management may need to reflect foreign government regulations and cultural

differences. 128) _____

129) Enterprise systems require fundamental changes in the way the business operates. 129)

_____

130) 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. 130) _____

131) In a pull-based model, production master schedules are based on forecasts of demand for

products. 131) _____

132) Cross-selling markets complementary products to customers. 132) _____

133) Global supply chains typically span smaller geographic distances and time differences than

domestic supply chains. 133) _____

134) The downstream portion of the supply chain includes the company’s suppliers, the

suppliers’ suppliers, and the processes for managing relationships with them. 134) _____

135) 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. 135) _____

136) Enterprise systems provide value both by decreasing operational efficiency and by

providing firm-wide information to help managers make better decisions. 136) _____

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

best practices. 137) _____

138) Enterprise systems can improve management reporting and decision making. 138) _____

139) Enterprise systems supply some integration of internal supply chain processes but they are

not designed to deal with internal supply chain processes. 139) _____

140) Inefficiencies in the supply chain, such as parts shortages, underutilized plant capacity,

excessive finished goods inventory, or high transportation costs, are caused by inaccurate or

untimely information. 140) _____

141) CRM software can help organizations identify high-value customers for preferential

treatments. 141) _____

142) All CRM packages contain modules for PRM and ERM. 142) _____

143) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and

Salesforce.com. 143) _____

144) One recurring problem in supply chain management is the bullwhip effect. 144) _____

145) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.

145) _____

146) Analytical CRM uses a customer data warehouse and tools to analyze customer data

collected from the firm's customer touch points and from other sources. 146) _____

147) A firm’s CRM is 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. 147) _____

148) A touch point (also known as a contact point) is a method of interaction with the customer,

such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or

retail store. 148) _____

149) One of the most important–and complex–supply chain planning functions is demand

planning, which determines how much product a business needs to make to satisfy all of its

customers’ demands. 149) _____

150) Many, especially smaller companies, still share product information over the phone, via e-

mail, or through faxes. 150) _____

151) In addition to reducing costs, supply chain management systems help increase sales. 151)

_____

152) Enterprise systems use a client/server architecture and have not yet been redesigned to take

advantage of the Web. 152) _____

153) There are versions of enterprise software packages designed for small businesses. 153)

_____

154) Firms use intranets to improve coordination among their external supply chain processes.

154) _____

155) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

155) _____

156) Enterprise software does not include analytical tools for using data captured by the system

to evaluate overall organizational performance. 156) _____

157) Supply chain execution systems manage the flow of products through distribution centres

and warehouses to ensure that products are delivered to the right locations in the most inefficient

manner. 157) _____

158) Inaccurate information can cause minor fluctuations in demand for a product to be

amplified as one moves further back in the supply chain. 158) _____

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

159) Identify two classifications for supply chain software. For each classification, identify five

capabilities.

160) Eddy is going to a conference to get training in the area of CRM. Upon his return he needs

to be able to instruct upper management at his firm on "How do customer relationship

management systems help firms achieve customer intimacy?" Describe how he should answer

that question.

161) You have been hired by Santori, Inc., a small company that imports and distributes an

Italian sparkling water. The company is interested in what benefits an enterprise system would

bring. Would an enterprise system be appropriate for this company? What steps would you take

in determining this?

162) What are the benefits of enterprise systems? What are the challenges of enterprise systems?

163) What additional complexities are faced in global supply chains? How does the Internet

help in managing global supply chains?

164) Identify two supply chain models. Which is better?

165) Identify and describe three major enterprise applications.

166) Robert is going to a conference to get training in the area of SCM. Upon his return he needs

to be able to instruct upper management at his firm on "How do supply chain management

systems coordinate planning, production, and logistics with suppliers?" Describe how he should

answer that question.

167) Identify two types of customer relationships management applications.

168) John is going to a conference to get training in the area of enterprise systems. Upon his

return he needs to be able to instruct upper management at his firm on "How do enterprise

systems help businesses achieve operational excellence?" Describe how he should answer that

question.

169) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have

hundreds of smaller nurseries based around the country that grow the plant stock. The majority

of their business is conducted online: Consumers purchase typically small quantities of products

online and Plant Away coordinates the shipping from the most appropriate nursery. What

unique problems might you anticipate they have in their supply chain? What might remedy these

problems?

170) Identify five benefits of customer relationship management systems.

1) C

2) C

3) B

4) C

5) D

6) C

7) A

8) D

9) A

10) B

11) D

12) C

13) B

14) A

15) C

16) D

17) C

18) D

19) B

20) B

21) C

22) B

23) B

24) B

25) D

26) C

27) B

28) D

29) D

30) A

31) B

32) D

33) C

34) B

35) C

36) D

37) B

38) A

39) D

40) B

41) A

42) A

43) D

44) A

45) B

46) A

47) C

48) C

49) D

50) C

51) C

52) B

53) B

54) A

55) A

56) D

57) B

58) D

59) B

60) B

61) D

62) C

63) A

64) A

65) D

66) D

67) raw materials

68) Operational

69) amplified

70) share

71) bullwhip effect

72) Partner relationship management (PRM)

73) software service

74) smaller

75) Cross-selling

76) analytical

77) configuration

78) Portal software

79) Supply chain execution

80) excess

81) operational

82) service platforms

83) Global supply chains

84) Sales force automation, SFA

85) Enterprise software

86) extranets

87) Supply chain planning

88) Inefficiencies

89) standardize

90) rapidly

91) supply chain

92) purchasing

93) just-in-time

94) pull-based

95) Demand planning

96) Employee relationship management (ERM)

97) change

98) cultural

99) different

100) intranets

101) manufacture

102) up-to-date

103) Internet

104) customization

105) Enterprise software

106) sales

107) touch point

108) external

109) downstream

110) churn rate

111) upstream

112) designed

113) SCM

114) TRUE

115) FALSE

116) TRUE

117) TRUE

118) TRUE

119) TRUE

120) TRUE

121) FALSE

122) FALSE

123) FALSE

124) FALSE

125) FALSE

126) TRUE

127) TRUE

128) TRUE

129) FALSE

130) TRUE

131) FALSE

132) TRUE

133) FALSE

134) FALSE

135) TRUE

136) FALSE

137) TRUE

138) TRUE

139) FALSE

140) TRUE

141) TRUE

142) FALSE

143) TRUE

144) TRUE

145) FALSE

146) TRUE

147) FALSE

148) TRUE

149) TRUE

150) TRUE

151) TRUE

152) FALSE

153) TRUE

154) FALSE

155) TRUE

156) FALSE

157) FALSE

158) TRUE

159) Supply chain planning systems and supply chain execution systems are two classifications

for supply chain software. Supply chain planning systems enable a firm to generate demand

forecasts for a product and develop sourcing and manufacturing plans for that product.

Capabilities include order planning, advanced scheduling and manufacturing planning, demand

planning, distribution planning, and transportation planning. Supply chain execution systems

manage the flow of products through distribution centres and warehouses to ensure that

products are delivered to the right locations. Capabilities include order commitments, final

production, replenishment, distribution management, and reverse distribution.

160) Customer relationship management (CRM) systems integrate and automate customer-

facing processes in sales, marketing, and customer service, providing an enterprise-wide view of

customers. Companies can use this customer knowledge when they interact with customers to

provide them with better service or to sell new products and services. These systems also identify

profitable or nonprofitable customers or opportunities to reduce the churn rate. The major

customer relationship management software packages provide capabilities for both operational

CRM and analytical CRM. They often include modules for managing relationships with selling

partners (partner relationship management) and for employee relationship management.

161) An enterprise system may be too expensive, although there are enterprise software

packages that are available to smaller companies. A hosted enterprise application might be the

most economical way to implement an enterprise system. To determine whether this would be

beneficial to Santori, I would first look at their existing business processes. It would be ideal to

determine if their efficiency meets benchmarks in their industry and allows them to be

competitive with other businesses in their niche. Then I would review existing hosted

applications to see how the applications business processes matched up with Santori's. It would

be important to compare the costs of instituting new business processes with the benefits and

cost-savings.

162) Benefits include creating an enterprise-enabled organization, providing firmwide

knowledge-based management processes, providing a unified information system technology

platform and environment, and enabling more efficient operations and customer-driven business

processes. Challenges include a daunting implementation process, surviving a cost-benefit

analysis, inflexibility, and realizing strategic value.

163) Global supply chains typically span greater geographic distances and time differences than

domestic supply chains and have participants from a number of different countries. Although the

purchase price of many goods might be lower abroad, there are often additional costs for

transportation, inventory, and local taxes or fees. Performance standards may vary from region to

region or from nation to nation. Supply chain management may need to reflect foreign

government regulations and cultural differences. All of these factors impact how a company

takes orders, plans distribution, organizes warehousing, and manages inbound and outbound

logistics throughout the global markets it services. The Internet helps companies manage many

aspects of their global supply chains, including sourcing, transportation, communications, and

international finance. As goods are being sourced, produced, and shipped, communication is

required among retailers, manufacturers, contractors, agents, and logistics providers. Many,

especially smaller companies, still share product information over the phone, via e-mail, or

through faxes. These methods slow down the supply chain and also increase errors and

uncertainty. With Internet technology, supply chain members communicate through a Web-

based system. Firms use intranets to improve coordination among their internal supply chain

processes, and they use extranets to coordinate supply chain processes shared with their business

partners. Using intranets and extranets, all members of the supply chain are instantly able to

communicate with each other, using up-to-date information to adjust purchasing, logistics,

manufacturing, packaging, and schedules.

164) Push-based and pull-based models were discussed in the textbook. Push-based refers to a

supply chain driven by production master schedules based on forecasts or best guesses of

demand for products. Pull-based refers to a supply chain driven by actual customer orders or

purchases so that members of the supply chain produce and deliver only what customers have

ordered. Pull-based models are better.

165) Enterprise systems, customer relationship management, and supply chain management are

three enterprise applications. Enterprise systems are based on a suite of integrated software

modules and a common central database. Enterprise systems utilize enterprise software to

support financial and accounting, human resources, manufacturing and production, and sales

and marketing processes. Enterprise systems provide many benefits including an enterprise-

enabled organization, improved management reporting and decision making, a unified

information systems technology platform, and more efficient operations and customer-driven

business processes.

Supply chain management systems help an organization better manage its supply chain, including planning,

sourcing, making, delivering, and returning items. Supply chain management software can be categorized as a supply

chain planning system or as a supply chain execution system. A supply chain planning system enables a firm to generate

demand forecasts for a product and to develop sourcing and manufacturing plans for that product. A supply chain

execution system manages the flow of products through distribution centres and warehouses to ensure that products are

delivered to the right locations in the most efficient manner. Supply chain management benefits include improved

customer service and responsiveness, cost reduction, and cash utilization.

Customer relationship management systems help firms maximize the benefits of their customer assets. These

systems capture and consolidate data from all over the organization and then distribute the results to various systems and

customer touch points across the enterprise. Customer relationship management systems can be classified as operational

or as analytical. Operational CRM refers to customer-facing applications, such as sales force automation, call centre and

customer service support, and marketing automation. Analytical CRM refers to customer relationship management

applications dealing with the analysis of customer data to provide information for improving business performance.

Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower

costs for customer acquisition and retention.

166) Supply chain management systems automate the flow of information among members of

the supply chain so they can use it to make better decisions about when and how much to

purchase, produce, or ship. More accurate information from supply chain management systems

reduces uncertainty and the impact of the bullwhip effect. Supply chain management software

includes software for supply chain planning and for supply chain execution. Internet technology

facilitates the management of global supply chains by providing the connectivity for

organizations in different countries to share supply chain information. Improved communication

among supply chain members also facilitates efficient customer response and movement toward

a demand-driven model.

167) Operational CRM and analytical CRM are two aspects. Operational CRM refers to

customer-facing applications, such as sales force automation, call centre and customer service

support, and marketing automation. Analytical CRM refers to customer relationship

management applications dealing with the analysis of customer data to provide information for

improving business performance.

168) Enterprise software is based on a suite of integrated software modules and a common

central database. The database collects data from and feeds the data into numerous applications

that can support nearly all of an organization’s internal business activities. When new

information is entered by one process, the information is made available immediately to other

business processes. Enterprise systems support organizational centralization by enforcing

uniform data standards and business processes throughout the company and a single unified

technology platform. The firmwide data generated by enterprise systems helps managers

evaluate organizational performance.

169) Typical problems in supply chains arise from unforeseeable events. In a plant nursery,

variations in the weather, growing season, plant diseases, crop output would be uncertainties.

Other problems might be interstate regulations governing plants allowed in different states, and

making sure plants survive and are healthy during transportation. It would be very important to

have up-to-date forecasting of the weather or growing seasons that could anticipate possible

problems, and analyze and determine the best transportation routes.

170) Benefits include: better customer service, make call centres more efficient, cross-sell

products more effectively, help sales staff close deals faster, simplify marketing and sales

processes, acquire new profitable customers, sell additional products and services, provide

customer information for developing new products, increase product utilization, reduce sales

and marketing costs, identify and retain profitable customers, optimize service delivery costs,

retain high-lifetime value customers, improve customer loyalty, improve response rates to direct

mail, increase product profitability, respond quickly to market opportunities.