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Chapter 9

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications True-False Questions 1. Manufacturing companies typically think about their supply chains as a process ultimately focused on serving the customer. Answer: False 2. Difficulty: Medium Reference: p. 355

Enterprise software allows data to be used by multiple functions and business processes for precise organizational coordination and control. Answer: True Difficulty: Easy Reference: p. 359

3.

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: True Difficulty: Hard Reference: p. 359

4.

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: False Difficulty: Medium Reference: p. 361

5.

Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs. Answer: True Difficulty: Medium Reference: p. 361

6.

Low inventory acts a buffer for the lack of flexibility in the supply chain. Answer: False Difficulty: Medium Reference: p. 362

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: True Difficulty: Medium Reference: p. 362

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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: False Difficulty: Hard Reference: p. 364

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: True Difficulty: Easy Reference: p. 365

10.

Intranets can be used to integrate information from isolated business processes within the firm to help them manage their internal supply chains. Answer: True Difficulty: Easy Reference: p. 365

11.

The Internet provides a standard set of tools that can be used by companies all over the world to coordinate overseas sourcing, transportation, communications, financing, and compliance with customs regulations. Answer: True Difficulty: Easy Reference: p. 365

12.

In a push-based model, actual customer orders or purchases trigger events in the supply chain. Answer: False Difficulty: Medium Reference: p. 366

13.

In a pull-based model, production master schedules are based on forecasts of demand for products. Answer: False Difficulty: Medium Reference: p. 366

14.

Dell Computer’s build-to-order system is an example of a pull-based model. Answer: True Difficulty: Medium Reference: p. 366

15.

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: True Difficulty: Hard Reference: p. 368

16.

Customer relationship management can help organizations identify customers who cost a lot to attract and to keep. Answer: True Difficulty: Hard Reference: p. 368

17.

Cross-selling is the marketing of complementary products to customers. Answer: True Difficulty: Easy Reference: p. 372

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18.

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: True Difficulty: Medium Reference: p. 374

19.

When building an enterprise system, the benefits are easily quantified at the beginning of the project. Answer: False Difficulty: Medium Reference: p. 376

20.

Enterprise systems require fundamental changes in the way the business operates. Answer: True Difficulty: Medium Reference: p. 376

Multiple-Choice Questions 21. What problem in its supply chain system did Whirlpool face by 2000? a. b. c. d. High inventory of finished goods but low availability...
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