Chapter 9

Question 1

1) Enterprise systems include analytical tools.

Answer 1

True

Question 2

2) Supply chain management systems are a type of enterprise system.

Answer 2

False

Question 3

3) An enterprise system helps reduce redundant business processes.

Answer 3

False

Question 4

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

Answer 4

False

Question 5

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

Answer 5

True

Question 6

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

Answer 6

False

Question 7

7) 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.

Answer 7

True

Question 8

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

Answer 8

False

Question 9

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

Answer 9

True

Question 10

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

Answer 10

True

Question 11

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

Answer 11

True

Question 12

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

Answer 12

False

Question 13

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

Answer 13

True

Question 14

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

Answer 14

True

Question 15

15) All CRM packages contain modules for PRM and ERM.

Answer 15

False

Question 16

16) Major CRM application software vendors include Oracle and SAP.

Answer 16

True

Question 17

17) Cross-selling markets complementary products to customers.

Answer 17

True

Question 18

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

Answer 18

True

Question 19

19) 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.

Answer 19

True

Question 20

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

Answer 20

True

Question 21

21) From your reading of the chapter's opening case, Nvidia implemented new information systems in order to achieve which of the main six business objectives?
A) Customer and supplier intimacy
B) Operational excellence
C) Survival
D) Improved decision making

Answer 21

D) Improved decision making

Question 22

22) 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:
A) process management software.
B) ERP systems.
C) groupware.
D) application software.

Answer 22

B) ERP systems.

Question 23

23) 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.

Answer 23

C) best practices.

Question 24

24) 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.

Answer 24

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

Question 25

25) 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.

Answer 25

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

Question 26

26) 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.

Answer 26

A) configuration tables.

Question 27

27) 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.

Answer 27

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

Question 28

28) 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.

Answer 28

C) produce products and services that coordinate with hundreds or more firms and suppliers.

Question 29

29) 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.

Answer 29

B) supply chain.

Question 30

30) Components or parts of finished products are referred to as:
A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.

Answer 30

D) intermediate products.