Management Information Systems
Chapter 9
Achieving Operational Excellence and Customer Intimacy:
Enterprise Applications
1) From your reading of the chapter's opening case, Skullcandy chose enterprise resource
planning software from which of the following ERP vendors?
A) Oracle
B) SAP
C) IBM
D) Microsoft
E) Infor Global Solutions
2) Which of the following provides 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?
A) Process management software
B) ERP systems
C) Groupware
D) CRM software
E) Supply chain management systems
3) Enterprise software is built around thousands of predefined business processes that reflect:
A) government regulations.
B) industry benchmarks.
C) best practices.
D) cutting edge workflow analyses.
E) the firm's culture.
4) 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.
E) Enterprise systems provide firm-wide information to help managers make
better decisions.
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5) You have been asked to implement enterprise software for a manufacturer of
kitchen appliances. What is the first step you should take?
A) Rewrite the software to support the way the company's business processes work.
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.
E) Select the functions of the system you wish to use.
6) Which of the following enables a company to tailor a particular aspect of
enterprise software to the way a company does business?
A) Configuration tables
B) Web services.
C) Data dictionaries
D) Middleware
E) Groupware
7) In order to achieve maximum benefit from an enterprise software package, a
business should:
A) customize the software to match all of its business processes.
B) use only the processes in the software that match its own processes.
C) change the way it works to match the software's business processes.
D) select only the software that best matches its existing business processes.
E) retain legacy systems that best work with the software.
8) Implementing enterprise software from Oracle enabled Alcoa to achieve all of
the following except:
A) reduce requisition-to-pay cycle times.
B) reduce accounts payable transaction processing.
C) centralize financial activities.
D) centralize procurement activities.
E) obtain lower prices for raw materials
9) Enterprise systems include analytical tools. ( T / F )
10) An enterprise system can help reduce redundant business processes. ( T / F )
11) Manufacturing and production processes include all of the following except:
A) procurement.
B) materials requirement planning.
C) quality control.
D) transportation execution.
E) product configuration.
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12) 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/an:
A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
E) information system.
13) Components or parts of finished products are referred to as:
A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.
E) mid-chain products.
14) Which of the following refers to a company's suppliers, supplier's suppliers, and the
processes for managing relationships with them?
A) Supplier's internal supply chain
B) External supply chain
C) Upstream portion of the supply chain
D) Downstream portion of the supply chain
E) Onstream portion of the supply chain
15) Which of the following refers to a company's organizations and processes for distributing
and delivering products to the final customers?
A) Supplier's internal supply chain
B) External supply chain
C) Upstream portion of the supply chain
D) Downstream portion of the supply chain
E) Onstream portion of the supply chain
16) If manufacturers had perfect information, they could implement a:
A) hyper-efficient strategy.
B) frictionless strategy.
C) streamlined strategy.
D) bullwhip strategy.
E) just-in-time strategy.
17) Why is not overstocking warehouses an effective solution for a problem of
low availability?
A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.
E) It lowers fill rate.
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18) Which of the following traditional solutions enables manufacturers to deal
with uncertainties in the supply chain?
A) Safety stock
B) Continuous replenishment
C) Just-in-time strategies
D) Demand planning
E) Perfect information
19) 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.
A) just-in-time
B) frictionless
C) bullwhip
D) safety-stock
E) streamlined
20) 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.
A) network
B) bullwhip
C) ripple
D) whirlpool
E) diffraction
21) 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
E) maintenance; development
22) Which of the following enables a firm to generate demand forecasts for a product and
to develop sourcing and manufacturing plans for that product?
A) Supply chain demand system
B) Supply chain delivery system
C) Supply chain optimization system
D) Supply chain execution system
E) Supply chain planning system
23) Supply chain planning systems perform all of the following functions except:
A) establish inventory levels for raw materials and finished goods.
B) identify the transportation mode to use for product delivery.
C) determine where to store finished goods.
D) determine how much product to manufacture in a given time period.
E) track the physical status of goods.
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24) 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
E) Customer planning
25) Which of the following manages 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) Supply chain demand system
B) Supply chain delivery system
C) Supply chain planning system
D) Supply chain execution system
E) Supply chain optimization system
26) Supply chain execution systems provide all of the following functions except:
A) generating demand forecasts for products.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
E) managing the financial information involving all parties.
27) From your reading of the LG Electronics case study, the company implemented JDA
software solutions to solve what problems?
A) Lack of brand recognition
B) Lack of coordination among production facilities
C) Poor supply chain visibility for management
D) Shoddy record-keeping
E) Inefficient logistics
28) A supply chain driven by actual customer orders or purchases follows a model.
A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) optimized
29) A build-to-order supply-chain model is also called a model.
A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
E) market-driven
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30) Concurrent supply chains are made possible by which technology?
A) ERP systems
B) the Internet
C) supply-chain management systems
D) just-in-time supply-chain technologies
E) extranets
31) 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) improved delivery service.
E) increased inventory levels.
32) The bullwhip effect can be countered by:
A) globalization.
B) disintermediation.
C) implementing a CRM.
D) reducing information uncertainty.
E) product differentiation.
33) As they move through the supply chain, are transformed into finished products
and shipped to retailers and customers.
A) raw materials
B) intermediate products
C) basic products
D) natural resources
E) nascent products
34) The total time it takes to complete a business process, from start to finish, is called its
time.
A) development
B) cycle
C) fulfillment
D) service
E) actualization
35) A company having difficulty with timely delivery of parts to its manufacturing
plants should implement a supply chain system.
A) execution
B) planning
C) optimization
D) management
E) touch point
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36) Supply chain management systems are a type of enterprise system. ( T / F )
37) The upstream portion of the supply chain consists of the organizations and processes
for distributing and delivering products to the final customers. ( T / F )
38) Supply chain inefficiencies can waste as much as 25 percent of a company's operating
costs. ( T / F )
39) Safety stock acts as a buffer for the lack of flexibility in the supply chain. ( T / F )
40) 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. ( T / F )
41) Supply chain execution systems enable the firm to generate demand forecasts for a
product and to develop sourcing and manufacturing plans for that product. ( T / F )
42) Before the pre-Internet environment, supply chain coordination was hampered by the
difficulties of making information flow smoothly among different internal supply chain
processes. ( T / F )
43) Inefficiencies in a supply chain are primarily caused by inaccurate or untimely
information. ( T / F )
44) In a push-based model of SCM systems, actual customer orders or purchases
trigger events in the supply chain. ( T / F )
45) In a pull-based model of SCM systems, production master schedules are based on
forecasts of demand for products. ( T / F )
46) Walmart is an example of a push-based model. ( T / F )
47) Total supply chain costs in some industries approach 75 percent of the total
operating budget. ( T / F )
48) 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
E) point of service
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49) Which of the following would not be considered a contact point?
A) E-mail
B) Website
C) Intranet
D) Retail store
E) Facebook
50) modules use many of the same data, tools, and systems as CRM to enhance
collaboration between a company and its selling partners.
A) SCM
B) SFA
C) ERM
D) DRM
E) PRM
51) modules deal with issues such as setting objectives, employee performance
management, and performance-based compensation.
A) SCM
B) SFA
C) ERM
D) DRM
E) PRM
52) 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.
E) human resources.
53) SFA modules in CRM systems provide tools for all of the following except:
A) team selling.
B) territory management.
C) sales forecasting.
D) managing sales prospect and contact information.
E) managing customer service requests.
54) CRM systems help businesses achieve which of the following business objectives?
A) Automated accounting processes
B) Automated production forecasts
C) Faster time to market with new products and services
D) Enhanced supplier intimacy
E) Enhanced customer intimacy
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55) 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.
E) organizing effective marketing campaigns.
56) Selling a customer with a checking account a home improvement loan is an example of:
A) operational CRM.
B) direct marketing.
C) sales force automation.
D) cross-channel promotions.
E) cross-selling.
57) Major CRM products typically have all of the following service capabilities except:
A) customer satisfaction management.
B) returns management.
C) call center & help desk.
D) service analytics.
E) order management.
58) Which of the following is an important capability for sales processes that is found in most
SFA modules in major CRM software products?
A) Returns management
B) Lead management
C) Channel promotions management
D) Events management
E) Customer satisfaction management
59) Which of the following customer relationship management applications provides analysis
of customer data?
A) Operational CRM
B) Analytical CRM
C) Operational SCM
D) Analytical SFA
E) Operational SFA
60) Operational CRM applications include tools for all of the following except:
A) sales force automation.
B) call center support.
C) marketing automation.
D) customer service support..
E) calculating CLTV
61) The difference between push- and pull-based models is summarized by which of the
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following slogans?
A) Sell what we make, not make what we sell.
B) Push what we make, not pull what we make.
C) Make what we sell, not sell what we make.
D) Pull what we make, not push what we sell.
E) Make what we push, not push what we sell.
62) Which of the following tools is used to analyzing customer buying patterns?
A) CLTV
B) Analytical CRM
C) Operational CRM
D) Demand planning
E) SFA
63) 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) Customer lifetime value
C) Cost per lead
D) Cost per sale
E) Customer average value
64) 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.
E) turnover percentage.
65) Walmart's continuous replenishment system is an example of a model.
A) push-based
B) pull-based
C) enterprise-based
D) supply chain optimization
E) forecast-based
66) 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.
A) Customer
B) SOA
C) Marketing
D) Complex
E) SFA
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67) CRM includes customer-facing applications such as tools for sales force
automation, call center and customer service support, and marketing automation.
A) Analytical
B) Employee
C) Operational
D) Partner
E) Next-generation
68) All CRM packages contain modules for PRM and ERM. ( T / F )
69) Major CRM application software vendors include Oracle, SAP, and
Salesforce.com. ( T / F )
70) Cross-selling is the marketing of complementary products to customers. ( T / F )
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