Deck 8: Strengthening Business-to-Business Relationships via Supply Chain and Customer Relationship

Question 1

________ focuses on delivering products or services to consumers as well as warehousing,delivering,invoicing,and payment collection.

A) Product demand planning
B) Production planning
C) Distribution planning
D) Safety stock planning
E) Inventory planning

Answer 1

C

Question 2

Distribution planning leads to the development of the overall ________.

A) production plan
B) safety stock plan
C) demand forecast
D) transportation schedule
E) sourcing plan

Answer 2

D

Question 3

Supply chain planning begins with ________.

A) product demand planning and forecasting
B) distribution planning
C) production scheduling
D) inventory planning
E) safety stock planning

Answer 3

A

Question 4

Which of the following statements about vendor-management inventory (VMI)is true?

A) To make VMI possible,the manufacturer must maintain large inventories of supplies,parts,warehousing resources,and extra workers to meet production contingencies.
B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed.
C) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
D) To make VMI possible,the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.

Question 5

________ is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels.

A) Just-in-case manufacturing
B) Scan-based trading
C) Vendor-managed inventory
D) Lean manufacturing
E) Just-in-time

Question 6

Which of the following statements about just-in-time strategies is true?

A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.
B) Companies using this strategy allow the suppliers to manage the manufacturer's inventory levels based on preestablished service levels.
C) Companies using this strategy maintain large inventories of supplies,parts,warehousing resources,and extra workers to meet production contingencies.
D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
E) The manufacturer or retailer using this strategy shares real-time sales data with their suppliers,who maintain inventory levels based on preestablished agreements.

Question 7

The key use of the order promising module of supply chain management is to ________.

A) work with partners across the supply network to improve accuracy of demand forecasts,reduce inventory buffers,and improve customer service
B) monitor key performance indicators to assess performance across the supply chain
C) manage logistics between company locations or from company to customers,taking into account transportation modes and constraints
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) provide answers to customer relationship management queries regarding product availability,costs,and delivery times

Question 8

________ involves the development of various resource plans to support the efficient and effective production of goods and services.

A) Supply chain visibility
B) Supply chain analytics
C) Supply chain execution
D) Supply chain networking
E) Supply chain planning

Question 9

Demand planning and forecasting leads to the development of the overall ________.

A) sourcing plan
B) transportation schedule
C) production plan
D) demand forecast
E) safety stock plan

Question 10

Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine.Fenfluramine was initially marketed by American Home Products,but was shown to cause potentially fatal pulmonary hypertension and heart valve problems.This eventually led to the withdrawal of the product and legal damages of over $13 billion.This is an example of ________.

A) a product recall
B) lean manufacturing
C) production control
D) the bullwhip effect
E) a green business

Question 11

MaxSteel Inc.,has been supplying steel to a well-known car manufacturer,Agis Corp.,for the past 3 years.Concerned employees at MaxSteel can directly access Agis Corp.'s inventory and sales information via electronic data interchange.This allows MaxSteel to monitor Agis Corp.'s inventory levels on a real-time basis.The system has worked well for both companies so far and there has never been any delay in the supply of steel.Which of the following,if true,would most strengthen Agis' supply chain strategy?

A) Agis Corp.'s management decides to take strong measures for increasing their safety stock of all raw materials.
B) Agis Corp.is taking measures to add wholesalers and retailers into their supply chain.
C) Agis Corp.has a strong desire to purchase MaxSteel in order to reduce dependency.
D) Agis Corp.is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain.
E) Agis Corp.is taking measures to ensure that the information shared with MaxSteel will not be shared outside their organization.

Question 12

Which of the following is the key use of the distribution planning module of supply chain management?

A) to ensure that the materials required for production are available when needed
B) to forecast and plan anticipated demand for products
C) to optimize the allocation of available supply to meet demand
D) to support production processes taking into account capacity and material constraints
E) to support receiving,storing,and picking of goods in a warehouse

Question 13

Which of the following is the main objective of information systems that focus on improving supply chains?

A) discouraging vendor-managed inventory systems
B) accelerating product development and innovation
C) discouraging sustainable production processes
D) decentralizing the organizations
E) encouraging the bullwhip effect

Question 14

La Belle Inc.introduced a new line of accessories for teenaged girls last season.Following its immense popularity with the targeted group,the company anticipated high sales this season.It ordered raw materials accordingly,and even ensured that they had sufficient inventory to meet excess demand,if any.However,the success of the new line turned out to be a fad,as the teens soon turned to other products offered by competing brands,and La Belle's sales declined.This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales.This is an example of ________.

A) the multiplier effect
B) hindsight bias
C) product recall
D) the bullwhip effect
E) safety stock planning

Question 15

Using analytical tools to optimally utilize labor,materials,and equipment is a part of the ________ step of supply chain planning.

A) demand forecasting
B) production scheduling
C) distribution planning
D) inventory planning
E) transportation scheduling

Question 16

Production scheduling ________.

A) focuses on the coordination of all activities needed to create the product or service
B) focuses on delivering products or services to consumers as well as warehousing
C) leads to the development of a sourcing plan
D) focuses on the development of inventory estimates
E) focuses on delivering products or services to consumers as well as invoicing and payment collection

Question 17

Computer maker,Dell,realized the problems with keeping large inventories,especially because of the fast rate of obsolescence of electronics components.Dell now keeps only about two hours of inventory in its factories.The company is most likely using a ________.

A) scan-based trading system
B) customer-managed inventory system
C) just-in-time inventory management system
D) vendor-managed inventory system
E) just-in-case inventory management system

Question 18

The key use of the manufacturing execution module of supply chain management is to ________.

A) forecast and plan anticipated demand for products
B) support production processes taking into account capacity and material constraints
C) ensure that the materials required for production are available where needed,when needed
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) support receiving,storing,and picking of goods in a warehouse

Question 19

The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer.

A) distribution resource planning
B) supply chain
C) procurement
D) demand chain
E) value network

Question 20

One major problem affecting supply chains are ripple effects referred to as the ________.

A) backflush effect
B) multiplier effect
C) bullwhip effect
D) incremental effect
E) stockwhip effect

Question 21

________ is an XML-based specification for publishing financial information.

A) Extensible Rights Markup Language
B) Extensible Application Markup Language
C) Extensible Access Control Markup Language
D) Extensible Business Reporting Language
E) Enterprise Mashup Markup Language

Question 22

Which of the following statements is true about product flow,a key element of supply chain execution?

A) It refers to the ability to track products as they move through the supply chain.
B) It refers to the movement of information along the supply chain,such as order processing and delivery status updates.
C) It refers to the movement of goods from the supplier to production,from production to distribution,and from distribution to the consumer.
D) It tracks a one-way flow of products from producers to consumers but cannot process returns or customer refunds.
E) It refers primarily to the movement of financial assets throughout the supply chain.

Question 23

________ is the use of electromagnetic energy to transmit information between a reader (transceiver)and a processing device.

A) Radio frequency identification
B) High capacity color barcoding
C) Interferometric modulator display
D) Photonic computing
E) Electronic product coding

Question 24

________ allow(s)designers of Web documents to create their own customized tags,enabling the definition,transmission,validation,and interpretation of data between applications and between organizations.

A) MySQL
B) Active Server Pages
C) Extensible Markup Language
D) Perl
E) Unified Modeling Language

Question 25

________ includes tags for data such as annual and quarterly reports,Securities and Exchange Commission filings,general ledger information,and net revenue and accounting schedules.

A) Extensible Application Markup Language
B) Extensible Business Reporting Language
C) Extensible Access Control Markup Language
D) Enterprise Mashup Markup Language
E) Extensible Rights Markup Language

Question 26

Supply chain execution ________.

A) involves the development of a sourcing plan
B) refers to the use of key performance indicators to monitor production
C) involves the management of product flow,information flow,and financial flow
D) refers to the ability to track products as they move through the supply chain
E) involves the development of demand forecast

Question 27

________ is a data presentation standard first specified by the World Wide Web Consortium,an international consortium of organizations whose purpose is to develop open standards for the Web.

A) Extensible Markup Language
B) Perl
C) MySQL
D) Active Server Pages
E) Unified Modeling Language

Question 28

Which of the following key elements of a supply chain execution includes information related to payment schedules,consignment,and ownership of products and materials?

A) financial flow
B) personnel flow
C) information flow
D) product flow
E) material flow

Question 29

Lee's department store uses the every day low prices strategy.This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods.This distribution network allowed them to cut out external suppliers and middlemen,further driving down business costs.This implies that the competitive strategy used by this store would most likely focus on ________.

A) supply chain efficiency
B) supply chain visibility
C) supply chain effectiveness
D) operational CRM
E) analytical CRM

Question 30

________ is the extent to which a company's supply chain is focusing on minimizing procurement,production,and transportation costs,sometimes by sacrificing excellent customer service.

A) Supply chain analytics
B) Supply chain effectiveness
C) Supply network collaboration
D) Supply chain efficiency
E) Supply chain visibility

Question 31

Inventory and safety stock planning ________.

A) leads to the development of the overall demand forecast
B) focuses on the coordination of all activities needed to create the product or service
C) leads to the development of a sourcing plan
D) focuses on delivering products or services to consumers as well as warehousing
E) leads to the development of a transportation schedule

Question 32

________ refers not only to the ability to track products as they move through the supply chain but also to foresee external events.

A) Supply chain visibility
B) Demand planning and forecasting
C) Supply chain analytics
D) Supply network collaboration
E) Supply chain efficiency

Question 33

________ is the extent to which a company's supply chain is focusing on maximizing customer service with lesser focus on procurement,production,and transportation costs.

A) Supply chain visibility
B) Supply chain effectiveness
C) Supply chain analytics
D) Supply chain efficiency
E) Supply network collaboration

Question 34

Which of the following statements is true about information flow,a key element of supply chain execution?

A) A key element of this aspect of supply chain execution is to foresee external events.
B) Information can only flow up the supply chain.
C) It refers to the use of key performance indicators to monitor performance of the entire supply chain.
D) The key element to the information flow is the complete removal of paper documents.
E) It refers primarily to the movement of financial assets throughout the supply chain.

Question 35

Inventory and safety stock planning leads to the development of a(n)________.

A) outsourcing plan
B) production plan
C) transportation schedule
D) demand forecast
E) sourcing plan

Question 36

Which of the following is an example of supply chain efficiency?

A) Federal Express focuses on providing superior service.
B) Caterpillar has high spare parts availability.
C) Dr.Pepper introduces a new flavor of soft drink.
D) Rolex positions itself as a prestige brand.
E) Apple sources its raw materials in ways that keep its costs low.

Question 37

Which of the following statements is true about XML?

A) XML is not standardized.
B) XML specifies a particular formatting.
C) XML cannot be tailored to share any data across applications over the Web.
D) XML tags are incapable of supplying interactive content to a Web page.
E) XML instructs systems as to how information should be interpreted and used.

Question 38

Comptel,a world leader in computer hardware,differentiates itself from its competitors by providing excellent after-sales service.This implies that the competitive strategy used by Comptel would most likely focus on ________.

A) supply chain analytics
B) supply chain visibility
C) supply chain effectiveness
D) supply network collaboration
E) supply chain efficiency

Question 39

________ can be used just about anywhere a unique identification system might be needed,such as on clothing,pets,cars,keys,missiles,or manufactured parts.

A) HTML tags
B) RFID tags
C) Spintronics
D) XML tags
E) High capacity color barcodes

Question 40

________ refers to the use of key performance indicators to monitor performance of the entire supply chain,including sourcing,planning,production,and distribution.

A) Demand forecasting
B) Supply network collaboration
C) Supply chain visibility
D) Supply chain efficiency
E) Supply chain analytics

Question 41

________ is the first component of an operational customer relationship management that supports a broad range of business processes,including tracking and managing customer history and preferences,account and contact management,and order processing and tracking.

A) Enterprise marketing management
B) Sales force automation
C) Data warehousing
D) Execution management
E) Customer service and support

Question 42

Which of the following examples portrays the 24/7/365 operation of a CRM system?

A) Web-based interfaces that provide product information,sales status,support information,issue tracking,and so on
B) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster
C) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
D) integrated information that removes information handoffs,speeding both sales and support processes
E) learning how each customer defines product and service quality so that customized product,pricing,and services can be designed or developed collaboratively

Question 43

________ refers to systems that automate requests,complaints,product returns,and information requests.

A) Data warehouse
B) Enterprise marketing management
C) Customer service and support
D) Execution management
E) Sales force automation

Question 44

Which of the following business processes can be enhanced by the analytical CRM system?

A) sales forecasting and performance analyses
B) account and contact management
C) price,quality,and satisfaction analysis of competitors
D) customer history and preferences management
E) order processing and tracking

Question 45

________ focuses on studying customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service.

A) Analytical CRM
B) Sales force automation
C) Operational CRM
D) Collaborative CRM
E) Integrated CRM

Question 46

Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer.

A) operational CRM
B) integrated CRM
C) analytical CRM
D) collaborative CRM
E) sales force automation

Question 47

Which of the following examples explains the improved planning benefit of using a CRM system?

A) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster
B) learning how each customer defines product and service quality so that customized product,pricing,and services can be designed or developed collaboratively.
C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction,repurchase probabilities,time frames,and frequencies
D) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
E) integrated information that removes information handoffs,speeding both sales and support processes

Question 48

Which of the following is a component of the operational CRM system?

A) sales force automation
B) data warehouses
C) ERP systems
D) data mining and visualization
E) business intelligence

Question 49

Which of the following is a component of the analytical CRM system?

A) enterprise marketing management
B) sales force automation
C) technologies to facilitate communication
D) data mining and visualization
E) customer service and support

Question 50

Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?

A) to track global spending on suppliers
B) to encourage the bullwhip effect
C) to develop demand forecasts
D) to portray a positive corporate image
E) to collaborate demand and production planning

Question 51

________ help create the mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history.

A) Data warehouses
B) Operational CRM systems
C) Analytical CRM systems
D) Integrated CRM systems
E) Collaborative CRM systems

Question 52

________ tools help a company in the execution of the CRM strategy by improving the management of promotional campaigns.

A) Business intelligence
B) Sales force automation
C) Enterprise marketing management
D) Customer interaction center
E) Execution management

Question 53

Which of the following statements about an RFID passive tag is true?

A) They are small and relatively inexpensive.
B) They have a range up to 300 feet or more.
C) They cost more than active tags.
D) They have an internal battery source.
E) They typically cost about $10.

Question 54

Which of the following portrays the individualized service benefit of a CRM system?

A) learning how each customer defines product and service quality so that customized product,pricing,and services can be designed or developed collaboratively
B) Web-based interfaces providing product information,sales status,support information,issue tracking,and so on
C) integrating all information for all points of contact with the customers,so that all who interact with customers have the same view and understand current issues
D) integrated information which removes information handoffs,which speeds both sales and support processes
E) improved record keeping and efficient methods of capturing customer complaints,helping to identify and solve problems faster

Question 55

Which of the following is a component of the collaborative CRM system?

A) sales force automation
B) data mining and visualization
C) enterprise resource planning systems
D) enterprise marketing management
E) technologies to facilitate communication

Question 56

________ refers to using multiple communication channels to support the communication preferences of users,such as the Web,the company's Facebook page,industry blogs,telephone,and so on.

A) Business intelligence
B) Customer interaction center
C) Enterprise marketing management
D) Execution management
E) Sales force automation

Question 57

________ includes the systems used to enable customer interaction and service.

A) Operational CRM
B) Integrated CRM
C) Collaborative CRM
D) A data warehouse
E) Analytical CRM

Question 58

Which of the following statements about an RFID active tag is true?

A) They are inexpensive,with prices starting at 10 cents.
B) They have a range up to 40 feet.
C) They are small compared to passive tags.
D) They include a battery.
E) They are less expensive as compared to passive tags.

Question 59

Which of the following statements is true about RFID systems?

A) RFID scanning can be done at greater distances than bar code scanning.
B) RFID information is readable depending on the entity's position.
C) RFID tags contain less information than bar codes.
D) All RFID tags are small and relatively inexpensive.
E) RFID requires time-consuming hand scanning.

Question 60

Which of the following portrays the improved product development benefit of a CRM system?

A) learning how each customer defines product and service quality so that customized product,pricing,and services can be designed or developed collaboratively
B) Web-based interfaces that provide product information,sales status,support information,issue tracking,and so on
C) integrated information that removes information handoffs,speeding both sales and support processes.
D) improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster
E) tracking customer behavior over time that helps to identify future opportunities for product and service offerings

Question 61

________ facilitate the sharing of information across the various departments of an organization in order to increase customer satisfaction and loyalty.

A) Collaborative CRM systems
B) Data warehousing systems
C) Operational CRM systems
D) Analytical CRM systems
E) Data mining systems

Question 62

Just-in-time is a business model in which the suppliers manage the manufacturer's inventory based on preestablished service levels.

Question 63

Supply chain effectiveness is the extent to which a company's supply chain is focusing on minimizing procurement,production,and transportation costs sometimes by sacrificing excellent customer service.

Question 64

Supply chain execution involves the development of various resource plans to support the efficient and effective production of goods and services.

Question 65

The flow of materials from suppliers to customers can be described as a supply network.

Question 66

Supply chain management improves the coordination of suppliers,product or service production,and distribution.

Question 67

Rather than engaging in conversations with their customers,organizations need to start seeing customers as an audience.

Question 68

Supply chain management is primarily used to optimize business processes within the organization.

Question 69

One major problem affecting supply chains are ripple effects referred to as the multiplier effect.

Question 70

EDI refers to computer-computer communication without any human intervention.

Question 71

Supply chain efficiency is the extent to which a company's supply chain is focusing on maximizing customer service regardless of procurement,production,and transportation costs.

Question 72

Customer relationship management allows organizations to focus on driving revenue as well as on reducing costs,as opposed to emphasizing only cost cutting.

Question 73

The primary use of extranets in organizations is for managing their supply chains.

Question 74

Customer relationship management applications are commonly integrated with a comprehensive enterprise resource planning implementation to leverage internal and external information to better serve customers.

Question 75

The efficiency of an SCM system is independent of the data entered into it.

Question 76

Customer relationship management systems collect data that can be mined to discover the next product line extension that consumers covet.

Question 77

Supply chain management systems allow users to make trade-offs between efficiency and effectiveness for individual components or raw materials.

Question 78

________ refers to systems for providing effective and efficient communication with the customer from the entire organization.

A) Analytical CRM
B) Sales force automation
C) Collaborative CRM
D) Operational CRM
E) Business intelligence

Question 79

The only drawback of XML is that it is not customizable.

Question 80

Although RFID tags contain more information than bar codes,they require time-consuming hand scanning.