Chapter 9 MIS

All of the following service capabilities would be found in major CRM products except
customer satisfaction management.
call center & help desk.
service analytics.
returns management.
order management.

order management.

Using social networking tools to converse with customers is called
analytical CRM.
social CRM.
PRM.
ERM.
operational CRM.

social CRM.

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.
frictionless
just-in-time
bullwhip
streamlined
safety-stock

just-in-time

Cross-selling is the marketing of complementary products to customers.
True
False

True

The measurement of the number of customers who stop using or purchasing products or services from a company is called
CLTV.
switch rate.
switching costs.
churn rate.
turnover percentage.

churn rate.

________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.
DRM
SFA
ERM
PRM
SCM

PRM

________ systems are based on a suite of software models used to support business activities across the firm.
Product differentiation
Supply chain
Enterprise
Global
Organizational

Enterprise

The bullwhip effect is countered by
globalization.
implementing an SCM.
disintermediation.
product differentiation.
reducing information uncertainty.

reducing information uncertainty.

________ 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.
Complex
SFA
SOA
Marketing
Customer

SFA

An enterprise system helps reduce redundant business processes.
True
False

False

________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.
Next-generation
Operational
Partner
Employee
Analytical

Operational

A supply chain driven by actual customer orders or purchases follows a ________ model.
pull-based
optimized
build-to-stock
replenishment-driven
push-based

pull-based

Supply chain management systems are a type of enterprise system.
True
False

False

The total time it takes to complete a business process, from start to finish, is called its ________ time.
fulfillment
service
cycle
actualization
development

cycle

All CRM packages contain modules for PRM and ERM.
True
False

False

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

industry goals.
cutting edge workflow analyses.
the firm’s culture.
the firm’s organization.
best practices.

best practices.

Supply chain complexity and scale increases when firms
manage the procurement, manufacturing, and distribution functions themselves.
modify their existing workflows to comply with supply-chain management systems.
move to globalization.
outsource more labor.
develop products and services that coordinate with many firms and suppliers.

develop products and services that coordinate with many firms and suppliers.

CRM software can help organizations identify high-value customers for preferential treatments.
True
False

True

Walmart’s continuous replenishment system is an example of a ________ model.
pull-based
forecast-based
enterprise-based
push-based
supply chain optimization

pull-based

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
True
False

False

In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.
True
False

False

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.
demand; continual
maintenance; development
push; pull
upstream; downstream
planning; execution

planning; execution

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?
demand planning
continuous replenishment
just-in-time strategies
perfect information
safety stock

safety stock

Which of the following is not one of the four types of customers described in the case study on Graybar?
core customers
service-drain customers
marginal customers
opportunistic customers
niche customers

niche customers

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.
True
False

True

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.
network
diffraction
bullwhip
ripple
whirlpool

bullwhip

Operational CRM applications include tools for
pinpointing unprofitable customers.
identifying buying patterns.
calculating CLTV.
creating segments for targeted marketing.
salesforce automation.

salesforce automation.

Why is overstocking warehouses not an effective solution for a problem of low availability?
It lowers fill rate.
It does not speed product time to market.
It increases inventory costs.
It increases sales costs.
It is an inefficient use of raw materials.

It increases inventory costs.

From your reading of the chapter’s opening case, ACH Food Companies implemented new information systems in order to achieve which of the following business objectives?
improved decision making
survival
operational excellence
new products and services
customer and supplier intimacy

operational excellence

Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad-hoc analysis, as part of the application.
ERM
SOA
PRM
business intelligence
social media

business intelligence

A company’s suppliers, supplier’s suppliers, and the processes for managing relationships with them is the
supplier’s internal supply chain.
upstream portion of the supply chain.
external supply chain.
downstream portion of the supply chain.
onstream portion of the supply chain.

upstream portion of the supply chain.

Analytical CRM uses tools to analyze customer data collected from the firm’s customer touch points and from other sources.
True
False

True

Which of the following is not an example of next-generation enterprise applications?
cloud solutions
solutions incorporating SOA
open-source solutions
social CRM
solutions incorporating SCM

solutions incorporating SCM

A build-to-order supply-chain model is also called a ________ model.
replenishment-driven
demand-driven
supply-based
push-based
market-driven

demand-driven

Which supply chain planning function determines how much product is needed to satisfy all customer demands?
distribution management
customer planning
demand planning
replenishment planning
order planning

demand planning

Customer relationship management systems typically provide software and online tools for sales, customer service, and
public relations.
marketing.
human resources.
account management.
advertising.

marketing.

In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
True
False

False

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
process management software.
ERP systems.
groupware.
application software.
supply chain management systems.

ERP systems.

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system.
touch point
optimization
management
planning
execution

execution

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a
supply chain.
distribution channel.
marketing channel.
value chain.
information system.

supply chain.

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.
ERM
DRM
SCM
PRM
SFA

ERM

Capabilities of supply chain execution systems would not include
managing the financial information involving all parties.
tracking the flow of finished goods.
managing warehouse operations.
managing materials.
identifying the optimal transportation mode.

identifying the optimal transportation mode.

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?
Map the company’s business processes to the software’s business processes.
Rewrite the software to support the way the company’s business processes work.
Select the functions of the system you wish to use.
Map the software’s business processes to the company’s business processes.
Select the business processes you wish to automate.

Select the functions of the system you wish to use.

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
True
False

False

Which of the following statements about enterprise applications is not true?
Enterprise applications introduce "switching costs."
Enterprise applications require fundamental changes in the way a business operates.
Enterprise applications are based on organization-wide definitions of data.
Enterprise applications require organizational learning.
Enterprise applications are best implemented when few changes in business processes are required.

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

Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.
True
False

True

Enterprise systems include analytical tools.
True
False

True

The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain.
True
False

False

From your reading of the Scott’s Miracle-Gro case study, the company implemented SAP and JDA enterprise and supply chain planning systems to solve what problems?
poor supply chain visibility for management
lack of brand recognition
shoddy record-keeping
coordination issues caused by the merger of Scott’s and MiracleGro
lack of coordination among production facilities

coordination issues caused by the merger of Scott’s and MiracleGro

The business value of an effective supply chain management system includes all of the following except
improved delivery service.
supply matched to demand.
increased inventory levels.
cost reduction.
faster time to market.

improved delivery service.

Safety stock acts as a buffer for the lack of flexibility in the supply chain.
True
False

True

A ________ is a method of interaction with a customer, such as telephone or customer service desk.
client channel
sales point
point of service
point of presence
touch point

touch point

Analyzing customer buying patterns is an example of
cross-selling.
demand planning.
operational CRM.
CLTV.
analytical CRM.

analytical CRM.

Before the Internet, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.
True
False

True

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with
configuration tables.
Web services.
middleware.
data dictionaries.
customized plug-ins.

configuration tables.

Marketing modules in CRM systems would provide tools for
capturing prospect and customer data.
assigning and managing customer service requests.
increasing efficiency of call centers.
identifying profitable and unprofitable customers.
managing sales prospect and contact information.

identifying profitable and unprofitable customers.

Customer service modules in CRM systems provide tools for
capturing prospect and customer data.
managing sales prospect and contact information.
organizing effective marketing campaigns.
identifying profitable and unprofitable customers.
assigning and managing customer service requests.

assigning and managing customer service requests.

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

analytical CRM

CRM systems help businesses obtain which business objective?
improved decision making
operational excellence
survival
new products and services
customer and supplier intimacy

customer and supplier intimacy

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.
demand
optimization
execution
delivery
planning

planning

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.
middleware
ERP systems
cloud solutions
legacy systems
e-business suites

e-business suites

Which of the following is not true about enterprise systems?
Enterprise software is expressly built to allow companies to mimic their unique business practices.
Enterprise software includes analytical tools to evaluate overall organizational performance.
Enterprise systems provide firmwide information to help managers make better decisions.
Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
Enterprise systems help firms respond rapidly to customer requests for information or products.

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

Components or parts of finished products are referred to as
mid-chain products.
secondary products.
raw materials.
intermediate products.
upstream materials.

intermediate products.

Selling a customer with a checking account a home improvement loan is an example of
cross-selling.
sales force automation.
operational CRM.
cross-channel promotions.
direct marketing.

cross-selling.

Supply chain planning systems perform all of the following functions except
establish inventory levels for raw materials and finished goods.
track the physical status of goods.
determine how much product to manufacture in a given time period.
determine where to store finished goods.
identify the transportation mode to use for product delivery.

track the physical status of goods.

As they move through the supply chain, ________ are transformed into finished products and shipped to retailers and customers.
intermediate products
nascent products
natural resources
basic products
raw materials

raw materials

Concurrent supply chains are made possible by which technology?
the Internet
supply-chain management systems
extranets
just-in-time supply-chain technologies
ERP systems

the Internet

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.
optimization
delivery
demand
planning
execution

execution

A company’s organizations and processes for distributing and delivering products to the final customers is the
onstream portion of the supply chain.
downstream portion of the supply chain.
supplier’s internal supply chain.
external supply chain.
upstream portion of the supply chain.

downstream portion of the supply chain.

SFA modules in CRM systems would provide tools for
identifying profitable and unprofitable customers.
capturing prospect and customer data.
assigning and managing customer service requests.
managing sales prospect and contact information.
employee performance management.

managing sales prospect and contact information.

Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers.
operational CRM
employee relationship management
Web services
just-in-time strategy
cross-selling

Web services

Major CRM application software vendors include Oracle, SAP, and Salesforce.com.
True
False

True

Which of the following would not be considered a contact point?
intranet
Web site
Facebook
retail store
e-mail

intranet

In order to achieve maximum benefit from an enterprise software package, a business
uses only the processes in the software that match its own processes.
selects only the software that best matches its existing business processes.
changes the way it works to match the software’s business processes.
retains legacy systems that best work with the software.
customizes the software to match all of its business processes.

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

If manufacturers had perfect information, they could implement a
frictionless strategy.
just-in-time strategy.
streamlined strategy.
hyper-efficient strategy.
bullwhip strategy.

just-in-time strategy.

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?
churn rate
cost per sale
cost per lead
customer lifetime value
customer average value

customer lifetime value

Inefficiencies in a supply chain are primarily caused by inaccurate information.
True
False

True

Which of the following is an important capability for sales processes that is found in most major CRM software products?
customer satisfaction management
events management
returns management
channel promotions management
lead management

lead management

Enterprise systems require fundamental changes in the way the business operates.
True
False

True

Walmart is an example of a push-based model.
True
False

False