IS 3003 Chapter 9

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True

Enterprise systems include analytical tools.

False

Supply chain management systems are a type of enterprise system.

False

An enterprise system helps reduce redundant business processes.

False

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

True

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

False

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

True

The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

False

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

True

In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.

True

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

True

It can cost six times more to sell a product to a new customer than to an existing customer.

False

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

True

Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model.

True

Total supply chain costs in some industries approach 75 percent of the total operating budget.

False

All CRM packages contain modules for PRM and ERM.

True

Major CRM application software vendors include Oracle and SAP.

True

Cross-selling markets complementary products to customers.

True

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

True

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.

True

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

True

A company’s supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.

False

To model its existing supply chain and develop optimal manufacturing plans, a firm would implement a supply chain execution system.

False

With new flows of information made possible by Web-based tools, supply chain management can more easily follow a push-based model.

True

The downstream portion of the supply chain includes retailers and customers.

False

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.

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