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Management Information Systems, 12e (Laudon)Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business.Answer: TRUEDiff: 2Page Ref: 338AACSB: Use of ITCASE: ComprehensionObjective: 9.42) Enterprise systems are typically built around one or two major business workflows.Answer: FALSEDiff: 1Page Ref: 338AACSB: Use of ITCASE: ComprehensionObjective: 9.13) Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers.Answer: FALSEDiff: 2Page Ref: 337AACSB: Use of ITCASE: ComprehensionObjective: 9.14) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.Answer: FALSEDiff: 2Page Ref: 341AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.25) Supply chain inefficiencies can waste as much as 25 percent of a companys operating costs. Answer: TRUEDiff: 2Page Ref: 342AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.26) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain. Answer: FALSEDiff: 2Page Ref: 342AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.27) 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: TRUEDiff: 2Page Ref: 342AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.28) 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: FALSEDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.29) To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software.Answer: TRUEDiff: 2Page Ref: 356AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.410) Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes.Answer: TRUEDiff: 1Page Ref: 356AACSB: Use of ITCASE: ComprehensionObjective: 9.411) In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain. Answer: FALSEDiff: 2Page Ref: 347AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.212) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.Answer: FALSEDiff: 2Page Ref: 347AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.213) Wal-marts strategy of continuous replenishment of inventory based on actual customer purchases is an example a pull-based SCM model. Answer: TRUEDiff: 2Page Ref: 347AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.214) 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. Answer: TRUEDiff: 2Page Ref: 348AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.215) You would expect to find PRM and ERM modules in the most comprehensive CRM software packages.Answer: TRUEDiff: 1Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.316) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and S. Answer: TRUEDiff: 3Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.317) Cross-selling markets complementary products to customers.Answer: TRUEDiff: 2Page Ref: 352AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.318) CRM software can help organizations identify high-value customers for preferential treatments.Answer: TRUEDiff: 2Page Ref: 352-354AACSB: Use of ITCASE: ComprehensionObjective: 9.319) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firms customer touch points and from other sources. Answer: TRUEDiff: 2Page Ref: 354AACSB: Use of ITCASE: ComprehensionObjective: 9.320) Enterprise systems require fundamental changes in the way the business operates. Answer: TRUEDiff: 2Page Ref: 355AACSB: Use of ITCASE: ComprehensionObjective: 9.421) From your reading of the Cannondale case study, the firm implemented new information systems in order to achieve which of the main six business objectives? A) customer and supplier intimacyB) survivalC) competitive advantageD) operational excellenceAnswer: DDiff: 3Page Ref: 335AACSB: Analytic SkillsCASE: Analysis in terms of categorizeObjective: 9.122) Which of the following is not an example of next-generation enterprise applications?A) open-source solutionsB) on-demand solutionsC) solutions incorporating SCMD) solutions incorporating SOAAnswer: CDiff: 3Page Ref: 357AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.523) 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 describesA) SCM software.B) ERP systems.C) ERM software.D) CRM modules.Answer: BDiff: 2Page Ref: 337AACSB: Use of ITCASE: ComprehensionObjective: 9.124) Enterprise software is built around thousands of predefined business processes that reflectA) the firms organization.B) industry goals.C) best practices.D) cutting edge workflow analyses.Answer: CDiff: 2Page Ref: 338AACSB: Use of ITCASE: ComprehensionObjective: 9.125) 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: CDiff: 2Page Ref: 337-339AACSB: Analytic SkillsCASE: Evaluation in terms of assessObjective: 9.126) 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 companys business processes to the softwares business processes. D) Map the softwares business processes to the companys business processes. Answer: ADiff: 2Page Ref: 338AACSB: Analytic SkillsCASE: Evaluation in terms of assessObjective: 9.427) When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company withA) configuration tables.B) Web services.C) data dictionaries.D) middleware.Answer: ADiff: 2Page Ref: 338AACSB: Use of ITCASE: ComprehensionObjective: 9.128) In order to achieve maximum benefit from an enterprise software package, a businessA) 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 softwares business processes. D) selects only the software that best matches its existing business processes. Answer: CDiff: 2Page Ref: 339AACSB: Use of ITCASE: Evaluation in terms of assessObjective: 9.429) Supply chain complexity and scale increases when firmsA) 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: CDiff: 3Page Ref: 340AACSB: Analytic SkillsCASE: Analysis in terms of appraiseObjective: 9.230) Why is overstocking warehouses not 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. Answer: DDiff: 2Page Ref: 342AACSB: Analytic SkillsCASE: Analysis in terms of appraiseObjective: 9.231) 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: BDiff: 2Page Ref: 340AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.232) Components or parts of finished products are referred to asA) upstream materials.B) raw materials.C) secondary products.D) intermediate products.Answer: DDiff: 2Page Ref: 341AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.233) A companys suppliers and the processes for managing relationships with them is theA) suppliers internal supply chain.B) external supply chain.C) upstream portion of the supply chain.D) downstream portion of the supply chain.Answer: CDiff: 2Page Ref: 341AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.234) A companys organizations and processes for distributing and delivering products to the final customers is theA) suppliers internal supply chain.B) external supply chain.C) upstream portion of the supply chain.D) downstream portion of the supply chain.Answer: DDiff: 2Page Ref: 341AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.235) Uncertainties arise in any supply chain because ofA) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events. Answer: DDiff: 2Page Ref: 342AACSB: Analytic SkillsCASE: Analysis in terms of appraiseObjective: 9.236) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) safety stockB) continuous replenishmentC) just-in-time strategiesD) demand planningAnswer: ADiff: 2Page Ref: 342AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.237) 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-timeB) frictionlessC) bullwhipD) safety-stockAnswer: ADiff: 2Page Ref: 342AACSB: Use of ITCASE: ComprehensionObjective: 9.238) 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) networkB) bullwhipC) rippleD) whirlpoolAnswer: BDiff: 1Page Ref: 342AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.239) Supply chain software can be classified as either supply chain _ systems or supply chain _ systems.A) push; pullB) demand; continualC) upstream; downstreamD) planning; executionAnswer: DDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.240) 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. A) demandB) deliveryC) planningD) executionAnswer: CDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.241) Supply chain planning systemsA) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders. Answer: BDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.242) Which supply chain planning function determines how much product is needed to satisfy all customer demands?A) distribution managementB) replenishment planningC) demand planningD) order planningAnswer: CDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.243) 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.A) demandB) deliveryC) planningD) executionAnswer: DDiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.244) Capabilities of supply chain execution systems would not includeA) identifying the optimal transportation mode.B) tracking the flow of finished goods.C) managing materials.D) managing warehouse operations.Answer: ADiff: 2Page Ref: 344AACSB: Use of ITCASE: ComprehensionObjective: 9.245) From your reading of the Southwest Airlines case study, the company implemented a new inventory management system to achieve which of the following six business objectives? A) customer and supplier intimacyB) new products, services, and business modelsC) survivalD) operational excellenceAnswer: DDiff: 2Page Ref: 345-346AACSB: Analytic SkillsCASE: Evaluation in terms of assessObjective: 9.146) A supply chain driven by actual customer orders or purchases follows a _ model. A) pull-based modelB) build-to-stockC) push-basedD) replenishment-drivenAnswer: ADiff: 2Page Ref: 347AACSB: Use of ITCASE: ComprehensionObjective: 9.247) A build-to-order supply-chain model is also called a _ model.A) supply-basedB) demand-drivenC) replenishment-drivenD) push-basedAnswer: BDiff: 2Page Ref: 347AACSB: Use of ITCASE: ComprehensionObjective: 9.248) Concurrent supply chains are made possible by which technology?A) ERP systemsB) the InternetC) supply chain management systemsD) just-in-time supply-chain technologiesAnswer: BDiff: 1Page Ref: 348AACSB: Use of ITCASE: ComprehensionObjective: 9.249) The business value of an effective supply chain management system includes all of the following exceptA) faster time to market.B) cost reduction.C) supply matched to demand.D) increased inventory levels.Answer: DDiff: 2Page Ref: 348AACSB: Analytic SkillsCASE: Evaluation in terms of assessObjective: 9.250) A _ is a method of interaction with a customer, such as telephone or customer service desk.A) point of presenceB) touch pointC) sales pointD) client channelAnswer: BDiff: 2Page Ref: 350AACSB: Reflective ThinkingCASE: ComprehensionObjective: 9.151) Which of the following would not be considered a contact point?A) e-mailB) Web siteC) intranetD) retail storeAnswer: CDiff: 2Page Ref: 350AACSB: Use of ITCASE: ComprehensionObjective: 9.352) _ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners. A) SCMB) SFAC) ERMD) PRMAnswer: DDiff: 2Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.353) _ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.A) SCMB) SFAC) ERMD) PRMAnswer: CDiff: 2Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.354) Customer relationship management systems typically provide software and online tools for sales, customer service, andA) marketing.B) account management.C) advertising.D) public relations.Answer: ADiff: 2Page Ref: 351-352AACSB: Use of ITCASE: ComprehensionObjective: 9.355) SFA modules in CRM systems would provide tools forA) 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.Answer: DDiff: 1Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.356) Customer service modules in CRM systems provide tools forA) 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.Answer: ADiff: 1Page Ref: 351AACSB: Use of ITCASE: ComprehensionObjective: 9.357) Marketing modules in CRM systems would provide tools forA) 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.Answer: CDiff: 1Page Ref: 352AACSB: Use of ITCASE: ComprehensionObjective: 9.358) _ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.A) EnterpriseB) ERMC) PRMD) ERPAnswer: BDiff: 2Page Ref: 286AACSB: Use of ITCASE: ComprehensionObjective: 9.359) Selling a customer with a checking account a home improvement loan is an example ofA

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