2) Which of the following would NOT be considered a contact point? 2) A) Web site B) retail store C) intranet D)

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1 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) 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.

2 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.

3 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 multiechelon 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

4 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

5 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)

6 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.

7 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

8 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)

9 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

10 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.

11 100) 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, , 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)

12 115) 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)

13 130) 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)

14 147) 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, , 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

15 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.

16 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

17 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

18 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

19 144) 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 customerfacing 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

20 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 , 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 Webbased 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 enterpriseenabled 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 genera 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 a 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 customer touch points across the enterprise. Customer relationship management systems can be classified as operation 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

21 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.

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