CRM and Supply Chain Strategy Complete Test Bank Ch.11

Package Title: Chapter 11, Testbank

Course Title: Rainer, IS 9e

Chapter Number: 11

Question Type: Multiple Choice

1) The _____ is the difference between what brokers charge shippers and what they pay truckers, typically about ___ percent.

a) chunk; 16

b) chuck; 56

c) spread; 16

d) spread; 56

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

2) Most trucking is performed by _____.

a) C.H. Robinson

b) contractors

c) private fleet employees

d) public consultants

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

3) _________ is an online freight _____ that uses algorithms and machine learning to provide full-load shippers with better prices and truck owners with more efficient routes.

a) Transfix; exchange

b) Transfix; marketplace

c) TruckNet; exchange

d) TruckNet; marketplace

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

4) Transfix is an online freight _____ that uses ____________ to provide full-load shippers with better prices and truck owners with more efficient routes.

a) exchange; algorithms and machine learning

b) exchange; expert systems and deep learning

c) marketplace; algorithms and machine learning

d) marketplace; expert systems and deep learning

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

5) ________ systems are important because customers are ________ powerful than ever; these systems put the intimacy back into customer service.

a) CRM; less

b) CRM; more

c) SCM; less

d) SCM; more

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

6) Businesses use customer ________ to create highly individualized offers that customers are more likely to accept.

a) customization

b) intimacy

c) personalization

d) virality

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

7) The optimal result of the organization’s CRM efforts is to ________ the number of high-value repeat customers while ________ customer churn.

a) maximize; maximizing

b) maximize; minimizing

c) minimize; maximizing

d) minimize; minimizing

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

8) ________ is the customer’s potential revenue stream over a number of years.

a) Customer churn

b) Customer life cycle

c) Lifetime value

d) Market capitalization

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

9) ________ is the loss of a certain percentage of customers over time.

a) Customer churn

b) Customer life cycle

c) Lifetime value

d) Market capitalization

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

10) ________ is the number of shares of the company’s stock outstanding multiplied by the price per share of the stock.

a) Customer churn

b) Customer life cycle

c) Lifetime value

d) Market capitalization

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

11) Amazon uses a _________-end CRM system because it ________.

a) low; coordinates staff activities in a campaign to sell its products

b) low; recommends products to returning customers

c) high; coordinates staff activities in a campaign to sell its products

d) high; recommends products to returning customers

Difficulty: Hard

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Application, Synthesis

Standard 1: AACSB || Technology

12) Boeing uses a _________-end CRM system because it ________.

a) low; coordinates staff activities in a campaign to sell its products

b) low; recommends products to returning customers

c) high; coordinates staff activities in a campaign to sell its products

d) high; recommends products to returning customers

Difficulty: Hard

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Application, Synthesis

Standard 1: AACSB || Technology

13) ________ CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

a) 360-degree

b) Analytical

c) Collaborative

d) Operational

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

14) Operational CRM systems support __________-office business processes.

a) back

b) east

c) front

d) west

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

15) Operational CRM systems support _________-office business processes or processes that _________.

a) back; directly interact with customers

b) back; do not directly interact with customers

c) front; directly interact with customers

d) front; do not directly interact with customers

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

16) ________ is a customer-facing CRM application.

a) E-mail

b) FAQ

c) Search

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

17) ________ are/is a customer-facing CRM application.

a) CIC

b) FAQ

c) Loyalty programs

d) Personalized web pages

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

18) ________ are/is a customer-touching CRM application.

a) CMAs

b) CIC

c) FAQs

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

19) ________ is a CRM operation in which organizational representatives use multiple channels to communicate with customers.

a) CIC

b) CMA

c) JIT

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

20) A call center is a _________.

a) CIC

b) CMA

c) JIT

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

21) ________ is the component of an operational CRM system that automatically records all of the components in a sales transaction process.

a) CIC

b) CMA

c) JIT

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

22) A ________ system tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow-up.

a) contact management

b) product knowledge

c) sales forecasting

d) sales lead tracking

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

23) A _________ system lists potential customers or customers who have purchased related products; that is, products similar to those that the salesperson is trying to sell to the customer.

a) contact management

b) product knowledge

c) sales forecasting

d) sales lead tracking

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

24) A ________ system is a mathematical technique for estimating future sales.

a) contact management

b) product knowledge

c) sales forecasting

d) sales lead tracking

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

25) A ________ system is a comprehensive source of information regarding products and services.

a) contact management

b) product knowledge

c) sales forecasting

d) sales lead tracking

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

26) ________ is the marketing of additional related products to customers based on a previous purchase.

a) Bundling

b) Cross-selling

c) Downselling

d) Upselling

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

27) ________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer’s initial product or service selection.

a) Bundling

b) Cross-selling

c) Downselling

d) Upselling

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

28) ________ is when a business sells a group of products or services together at a lower price than their combined individual prices.

a) Bundling

b) Cross-selling

c) Downselling

d) Upselling

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

29) Amazon’s recommender system is an example of ________.

a) bundling

b) cross-selling

c) downselling

d) upselling

Difficulty: Hard

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

30) Your cable company sells you package deal with internet, phone, and TV. This is an example of __________.

a) bundling

b) cross-selling

c) downselling

d) upselling

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

31) You want to buy a 65” TV, but a sales representative talks you into the 70” TV because it is only a little more expensive and will still fit nicely into that spot on your wall. This is an example of ________.

a) bundling

b) cross-selling

c) downselling

d) upselling

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

32) Analytical CRM systems provide ________ by analyzing customer behavior and perceptions.

a) BI

b) CIC

c) ERP

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

33) ________ is an analytical CRM technology.

a) CMA

b) OLAP

c) OLTP

d) SFA

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

34) ________ is NOT an important technology in analytical CRM systems.

a) BI

b) Campaign management

c) Data mining

d) OLAP

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

35) ________ CRM systems are purchased from a vendor and then installed on site.

a) On-demand

b) On-premise

c) Mobile

d) Social

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

36) You decide to purchase Oracle’s Netsuite CRM+ system. This is an example of a(n) ________ CRM system.

a) on-demand

b) on-premise

c) mobile

d) social

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

37) ________ CRM systems are hosted by an external vendor in the vendor’s data center.

a) On-demand

b) On-premise

c) Mobile

d) Social

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

38) The concept of ________ is also known as utility computing or ________.

a) on-demand; ERP

b) on-demand; SaaS

c) on-premise; ERP

d) on-premise; SaaS

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

39) ________ is the best-known on-demand CRM vendor.

a) Microsoft

b) Oracle

c) Salesforce

d) SAP

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

40) ________ CRM systems are interactive systems that enable organizations to conduct communications related to sales, marketing, and customer service activities through portable devices for the purpose of building and maintaining relationships with its customers.

a) On-demand

b) On-premise

c) Open-source

d) Mobile

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

41) It is really important that your customers are able to contact you anytime, anywhere, from any device. This suggests you should implement a(n) ________ CRM system.

a) on-demand

b) on-premise

c) open-source

d) mobile

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

42) ________ CRM systems have source code that is available to developers and users.

a) On-demand

b) On-premise

c) Open-source

d) Social

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

43) Above all, you want to implement the cheapest CRM system available. You are willing to accept any risks associated with this, so you would want to implement a(n) ________ CRM system.

a) mobile

b) on-premise

c) open-source

d) social

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

44) ________ CRM systems use social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.

a) On-demand

b) On-premise

c) Open-source

d) Social

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

45) Morton’s Steakhouse utilized a(n) ________ CRM system to surprise a customer with a meal.

a) mobile

b) open-source

c) real-time

d) social

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

46) Southwest Airlines utilized a(n) ________ CRM system to rearrange a customer’s flight schedule to get to her comatose son.

a) mobile

b) open-source

c) real-time

d) social

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

47) Which of the following does NOT help with managing supply chain information?

a) CRM

b) GPS

c) RFID

d) SCM

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

48) Sourcing and procurement from external suppliers are ________ activities.

a) downstream

b) internal

c) upstream

d) irrelevant

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

49) You purchase the raw metal, glass, and leather to manufacture your new car from various suppliers. You are conducting business ________.

a) downstream

b) internally

c) upstream

d) foolishly

Difficulty: Medium

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Application

Standard 1: AACSB || Technology

50) Packing, assembly, or manufacturing are ________ activities.

a) downstream

b) internal

c) upstream

d) irrelevant

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

51) You work on the assembly line of a BMW in South Carolina. This is a(n) ________ activity.

a) downstream

b) internal

c) upstream

d) irrelevant

Difficulty: Medium

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Application

Standard 1: AACSB || Technology

52) Distribution is a(n) ________ activity.

a) downstream

b) internal

c) upstream

d) irrelevant

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

53) You use FedEx and UPS to ship your products to customers. This is an example of a(n) ________ activity.

a) downstream

b) internal

c) upstream

d) irrelevant

Difficulty: Medium

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Application

Standard 1: AACSB || Technology

54) ________ flows are the physical products, raw materials, supplies, and so forth that flow along the chain.

a) Financial

b) Information

c) Material

d) Supply

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

55) ________ flows consist of data related to demand, shipments, orders, returns, and schedules, as well as changes in any of these data.

a) Financial

b) Information

c) Material

d) Supply

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

56) ________ flows involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

a) Financial

b) Information

c) Material

d) Supply

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

57) Organizations must have a strategy for managing all the resources that are involved in meeting customer demand for their product or service. This strategy is developed in the ________ component of SCM.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

58) In the ________ component of SCM, organizations choose suppliers to deliver the goods and services they need to create their product or service.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

59) In the ________ component of SCM, supply chain managers develop pricing, delivery, and payment processes with suppliers, and they create metrics to monitor and improve their relationships with their suppliers.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

60) In the ________ component of SCM, supply chain managers develop processes for managing their goods and services inventory.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

61) In the ________ component of SCM, supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

62) The ________ component of SCM is the most metric-intensive part of the supply chain in which organizations measure quality levels, production output, and worker productivity.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

63) The ________ component of SCM is often referred to as logistics.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

64) In the ________ component of SCM, organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport their products to their customers, and create an invoicing system to receive payments.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

65) In the ________ component of SCM, supply chain managers create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as for supporting customers who have problems with delivered products.

a) deliver

b) make

c) plan

d) return

e) source

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

66) The push model is also called ________ which means the production process begins with a ________.

a) make-to-order; customer order

b) make-to-order; forecast

c) make-to-stock; customer order

d) make-to-stock; forecast

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

67) The pull model is also called ________ which means the production process begins with a ________.

a) make-to-order; customer order

b) make-to-order; forecast

c) make-to-stock; customer order

d) make-to-stock; forecast

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

68) The pull model is also known as ________ which is closely aligned with mass ________.

a) make-to-order; customization

b) make-to-order; production

c) make-to-stock; customization

d) make-to-stock; production

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

69) ________ refers to erratic shifts in orders up and down the supply chain.

a) JIT

b) The bullwhip effect

c) Vertical integration

d) VMI

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

70) Stockpiling is most likely to occur with ________.

a) ERP

b) the bullwhip effect

c) vertical integration

d) VMI

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

71) ________ is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

a) JIT

b) The bullwhip effect

c) Vertical integration

d) VMI

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

72) ________ is a business strategy in which a company purchases its ________ suppliers to ensure that its essential supplies are available as soon as the company needs them.

a) Vertical integration; downstream

b) Vertical integration; upstream

c) VMI; downstream

d) VMI; upstream

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

73) ________ delivers the precise number of parts to be assembled into a finished product at precisely the right time.

a) JIT

b) The bullwhip effect

c) Vertical integration

d) VMI

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

74) ________ occurs when the supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products.

a) JIT

b) The bullwhip effect

c) Vertical integration

d) VMI

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

75) The Walmart and P&G relationship is an example of ________.

a) JIT

b) the bullwhip effect

c) vertical integration

d) VMI

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Application

Standard 1: AACSB || Technology

76) _______ is the practice of growing groups in stacked layers in controlled environments.

a) Aeroponics

b) Hydroponics

c) Horizontal farming

d) Vertical farming

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

77) _______ is a method of growing plants without soil by using nutrient solutions in water.

a) Aeroponics

b) Hydroponics

c) Horizontal farming

d) Vertical farming

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

78) _______ is a method of growing plants without soil by using nutrients in a mist.

a) Aeroponics

b) Hydroponics

c) Horizontal farming

d) Vertical farming

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

79) AppHarvest uses ____________ ; it is building North America’s largest ____ farm.

a) agricultural technology; horizontal

b) agricultural technology; vertical

c) machine learning; horizontal

d) machine learning; vertical

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

80) Flexe is the _______ of warehousing.

a) Airbnb

b) Amazon

c) Google

d) Twitter

Difficulty: Easy

Section Reference 1: IT’s About Business 11.2

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

81) Flexe helps start-ups and small businesses compete with ____ more effectively.

a) Amazon

b) Facebook

c) Google

d) Walmart

Difficulty: Easy

Section Reference 1: IT’s About Business 11.2

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

82) Which is NOT a reason that Flexe provides such a valuable service to smaller companies?

a) Flexe applies the companies’ own branding to boxes

b) Flexe offers overnight ground service to nearly all of the U.S.

c) Flexe has to ability to help expand holiday pop-up stores beyond their temporary locations

d) Flexe offers CRM solutions that can reroute customers from Amazon.com to competitor websites

Difficulty: Medium

Section Reference 1: IT’s About Business 11.2

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Application

Standard 1: AACSB || Technology

83) _________ is a communication standard that enables business partners to exchange routine documents electronically.

a) EDI

b) ERP

c) JIT

d) VMI

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

84) EDI increases _________.

a) cycle time

b) data entry errors

c) message length

d) productivity

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

85) EDI decreases _________.

a) customer service

b) message length

c) productivity

d) security

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

86) ________ is a disadvantage of EDI.

a) Message length

b) Productivity

c) Security

d) The number of standards

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

87) ________ link(s) business partners over ________ by providing them access to certain areas of each other’s corporate ________.

a) Extranets; the Internet; intranets

b) Intranets; extranets; the internet

c) The Internet; extranets; intranets

d) The Internet; intranets; extranets

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

88) Extranets use ________ technology to make communication over the internet more secure.

a) JIT

b) RFID

c) VMI

d) VPN

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

89) OpenText is an example of ________.

a) a portal and exchange

b) an extranet for a company and its dealers, customers, or suppliers

c) an industry’s extranet

d) joint ventures and other business partnerships

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Application

Standard 1: AACSB || Technology

90) ________ portals automate upstream business processes.

a) Buying

b) Distribution

c) Procurement

d) Selling

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

91) ________ portals automate downstream business processes.

a) Buying

b) Distribution

c) Procurement

d) Selling

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

92) ____________ robots are revolutionizing local delivery services in cities.

a) Automated delivery

b) Follow-me

c) Goods-to-person

d) Telepresence

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

93) ____________ robots move with people in the picking operation.

a) Automated delivery

b) Follow-me

c) Goods-to-person

d) Telepresence

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

94) ____________ robots help pick products or orders by scanning a grid on the warehouse floor that contains bar codes or QR codes.

a) Automated delivery

b) Follow-me

c) Goods-to-person

d) Telepresence

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

95) ____________ robots are remote-controlled, wheeled devices that have wireless internet connectivity and typically have a display that provides video and audio capabilities.

a) Automated delivery

b) Follow-me

c) Goods-to-person

d) Telepresence

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

96) In August 2020, _____ received federal approval to use drones to deliver packages.

a) Amazon

b) FedEx

c) UPS

d) Walmart

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

97) In August 2020, ____ began testing its driverless fleet of trucks.

a) Amazon

b) Google

c) Tesla

d) Waymo

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

98) ________ is critical to Amazon’s success.

a) ERP

b) JIT

c) SCM

d) VMI

Difficulty: Hard

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

99) Which of the following is NOT one of Amazon’s competitors for developing a global shipping and logistics business?

a) Alibaba

b) FedEx

c) UPS

d) Walmart

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

100) _____ is Amazon’s freight forwarding business.

a) Maritime

b) OneTouch

c) Seller Flex

d) Scouts

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

101) _____ is Amazon’s on-demand local delivery service.

a) Maritime

b) OneTouch

c) Seller Flex

d) Scouts

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

102) _____ is the robot program Amazon started using in 2019.

a) Maritime

b) OneTouch

c) Seller Flex

d) Scouts

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question type: True/False

103) Transfix deployed a dedicated smartphone app that allows shippers to request available drivers on an on-demand basis.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

104) Transfix’s app focuses on shipping effectiveness.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

105) Transfix’s app focuses on shipping efficiency.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

106) Customers are increasingly powerful since a competitor is just a click away.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

107) Buyer power is lower in today’s market.

Difficulty: Hard

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

108) Buyer power is higher in today’s market.

Difficulty: Hard

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

109) The SCM approach is designed to achieve customer intimacy.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

110) The CRM approach is designed to achieve customer intimacy.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

111) CRM is not a process or technology but rather a customer-centric way of thinking and acting.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

112) The focus of modern organizations has shifted from managing customer relationships to conducting business transactions.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

113) The focus of modern organizations has shifted from conducting business transactions to managing customer relationships.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

114) Repeat customers are the largest generator of revenue for an enterprise.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

115) Winning back a customer who has switched to a competitor is vastly more expensive than keeping that customer satisfied in the first place.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

116) The optimal result of the organization’s CRM efforts is to minimize customer intimacy while maximizing customer churn.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

117) The optimal result of the organization’s CRM efforts is to maximize customer intimacy while minimizing customer churn.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

118) The fundamental concept of CRM is to treat different customers differently because their needs differ and their value to the company may also differ.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

119) Low-end CRM systems are designed for companies like Boeing because they only have a few, large customers.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

120) High-end CRM systems are designed for companies like Amazon because they are so large and have so many different customers.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

121) Low-end CRM systems are designed for enterprises with many small customers.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

122) High-end CRM systems are designed for enterprises with a few large customers.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

123) High-end CRM systems are designed for enterprises with many small customers.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

124) Low-end CRM systems are designed for enterprises with a few large customers.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

125) Cooperative CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

126) Collaborative CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

127) Cooperative CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

128) A customer identity management platform within a CRM will help a company create the 360-degree view across an entire organization and not just within a division.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

129) Customer identity management platforms focus on creating customer intimacy within a particular functional area.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

130) Operational CRM systems support back-office business processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

131) Analytical CRM systems support front-office business processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

132) Operational CRM systems support front-office business processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

133) Back-office processes are those that directly interact with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

134) Front-office processes are those that directly interact with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

135) Sales, marketing, and service are back-office processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

136) Sales, marketing, and service are front-office processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

137) In customer-touching CRM applications, an organization’s sales, field service, and customer interaction center representatives interact directly with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

138) In customer-facing CRM applications, an organization’s sales, field service, and customer interaction center representatives interact directly with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

139) Customer interaction centers are an example of a customer-touching CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

140) Sales force automation is an example of a customer-touching CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

141) Campaign management applications are an example of a customer-touching CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

142) Customer interaction centers are an example of a customer-facing CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

143) Sales force automation is an example of a customer-facing CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

144) Campaign management applications are an example of a customer-facing CRM application.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

145) Cross-selling is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of great value in place of, or along with, the consumer’s initial product or service selection.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

146) Up-selling is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of great value in place of, or along with, the consumer’s initial product or service selection.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

147) Cross-selling is the marking of additional related products to customers based on a previous purchase.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

148) Upselling is the marking of additional related products to customers based on a previous purchase.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

149) Amazon’s recommender system is an example of cross-selling.

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Application

Standard 1: AACSB || Technology

150) Bundling is a form of upselling.

Difficulty: Hard

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

151) CMA is a way for organizations to avoid targeting people who have opted out of receiving marketing communications.

Difficulty: Medium

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

152) Customer-facing CRM applications allow customers to self-serve.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

153) Customer-touching CRM applications allow customers to self-serve.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

154) Customer-touching CRM applications are also called electronic CRM applications.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

155) The purpose of loyalty programs is to reward past behavior.

Difficulty: Hard

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

156) Analytical CRM systems are the input for operational CRM systems.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

157) Data from customer-facing and customer-touching applications are the inputs for analytical CRM systems.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

158) Open-source CRM systems must be implemented on-premise because they require coding by internal programmers to meet the company’s needs.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

159) On-demand CRM systems take advantage of utility computing.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

160) Salesforce is the best known on-premise CRM vendor.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

161) Salesforce is the best known on-demand CRM vendor.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

162) On-demand CRM systems are CRM systems whose source code is available to developers and users.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

163) Open-source CRM systems are CRM systems whose source code is available to developers and users.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

164) Open-source CRM systems are more cost effective but quality control is an issue.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

165) On-premise CRM systems are the most secure of all the CRM application options.

Difficulty: Hard

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

166) Customer intimacy enhances trust and collaboration among supply chain partners, thus improving supply chain visibility and inventory accessibility.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

167) A supply chain enhances trust and collaboration among supply chain partners, thus improving supply chain visibility and inventory velocity.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

168) Inventory velocity refers to the ability of all organizations within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

169) Supply chain visibility refers to the ability of all organizations within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

170) The higher the inventory velocity, the more satisfied the company’s customers will be.

Difficulty: Medium

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

171) The downstream segment of the supply chain is where sourcing or procurement from external suppliers occurs.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

172) The internal segment of the supply chain is where sourcing or procurement from external suppliers occurs.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

173) The upstream segment of the supply chain is where sourcing or procurement from external suppliers occurs.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

174) The upstream segment of the supply chain is where packaging, assembly, or manufacturing takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

175) The downstream segment of the supply chain is where packaging, assembly, or manufacturing takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

176) The internal segment of the supply chain is where packaging, assembly, or manufacturing takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

177) The upstream segment of the supply chain is distribution takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

178) The internal segment of the supply chain is distribution takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

179) The downstream segment of the supply chain is distribution takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

180) The supply chain always flows downstream.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

181) If you want to return a defective product to the supplier, this is an example of an upstream flow of the supply chain.

Difficulty: Medium

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Application

Standard 1: AACSB || Technology

182) Supply chains require material, information, and financial flows.

Difficulty: Hard

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

183) SCM systems are a type of interorganizational IS.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

184) SCM systems are a type of intraorganizational IS.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

185) The function of SCM is to improve the processes a company uses to acquire the raw materials it needs to produce a product or service and then deliver that product or service to its customers.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

186) The function of CRM is to improve the processes a company uses to acquire the raw materials it needs to produce a product or service and then deliver that product or service to its customers.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

187) The push model is also called make-to-order.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

188) The push model is also called make-to-stock.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

189) The pull model is also called make-to-order.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

190) The pull model is also called make-to-stock.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

191) The push model aligns with mass customization.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

192) The pull model aligns with mass customization.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

193) When the production process begins with a customer order, it is a pull model.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

194) Forecasts are typically accurate which is why most companies utilize the push model.

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Analysis

Standard 1: AACSB || Technology

195) Cars are typically produced using the pull model.

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Application

Standard 1: AACSB || Technology

196) Dell Computer uses the pull model.

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Application

Standard 1: AACSB || Technology

197) The bullwhip effect refers to erratic shifts in orders up and down the supply chain.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

198) Inventory velocity refers to erratic shifts in orders up and down the supply chain.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

199) JIT is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

200) VMI is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

201) Vertical integration is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

202) Vertical integration is a business strategy in which a company purchases its downstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

203) JIT lessens the amount of inventory a company carries.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

204) JIT shifts excess inventory to suppliers.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

205) VMI occurs when the retailer manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

206) Vertical integration occurs when the retailer manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

207) VMI occurs when the supplier manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

208) Vertical integration occurs when the supplier manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

209) The COVID-19 pandemic highlighted the robustness of international food supply chains.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

210) The COVID-19 pandemic highlighted the fragility of international food supply chains.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

211) Agricultural technology is the use of technology in agriculture, horticulture, and aquaculture to improve yield, efficiency, and profitability while decreasing environmental costs.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.1

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

212) Ryder is an excellent example of how vertical integration is always the best solution to supply chain problems like theirs.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

213) JIT eliminates excess inventory.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

214) JIT shifts inventory downstream.

Difficulty: Hard

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

215) JIT shifts inventory upstream.

Difficulty: Hard

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

216) Flexe offers an SCM solution for businesses to compete with Amazon.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.2

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

217) Some companies are trying to replace EDI with XML.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

218) EDI minimizes data entry errors.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

219) Intranets link business partners over the internet by providing them access to certain areas of each other’s corporate extranets.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

220) The primary goal of extranets is to foster collaboration between and among business partners.

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

221) The primary goal of intranets is to foster collaboration between and among business partners.

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

222) Procurement portals are for a company’s suppliers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

223) Distribution portals are for a company’s customers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

224) Distribution portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

225) Distribution portals automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

226) Dell services its business customers through its distribution portal.

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Application

Standard 1: AACSB || Technology

227) The first major impact of drones will be in warehouse and logistics functions.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

228) The first major impact of drones will be in customer delivery.

Difficulty: Easy

Section Reference 1: IT’s About Business 11.3

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

229) Amazon’s package delivery is fully automated (no humans are involved).

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

230) Amazon no longer has to rely on UPS, FedEx, and USPS for its logistics needs.

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question type: Text Entry

231) _________________ is a customer-focused and customer-driven organizational strategy where organizations concentrate on assessing customers’ requirements for products and services and then provide a high-quality, responsive customer experience.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

232) Over time, all organizations inevitably lose a percentage of customers, a process called ___.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

233) _____-end CRM systems are designed for enterprises with many small customers.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

234) _____-end CRM systems are designed for enterprises with a few large customers.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

235) The organization’s numerous and diverse interactions with customers are called ___.

Difficulty: Medium

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

236) ___ systems provide effective and efficient interactive communication with the customer throughout the entire organization.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

237) A(n) _________________________ platform within a CRM will help a company create the 360-degree view across an entire organization and not just within a division.

Difficulty: Easy

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

238) ___________ CRM systems support front-office business processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

239) Operational CRM systems support __________-office business processes.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

240) ___________ -office processes are those that directly interact with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

241) In customer- ___________ CRM applications, an organization’s sales, field service, and customer interaction center representatives interact directly with customers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

242) Organizational representatives use multiple channels to communicate with customers in customer _______ centers.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

243) _____________ is the component of an operational CRM system that automatically records all of the components in a sales transaction process.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

244) A(n) ___________ tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow-up.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

245) A(n) ______________________ system is a mathematical technique for estimating future sales.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

246) A(n) _________ system lists potential customers or customers who have purchased related products.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

247) A(n) __________ system is a comprehensive source of information regarding products and services.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

248) ________________ enable customers to model the product to meet their specific need.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

249) A(n) _____________________ is a snapshot of a consumer’s buying habits that may lead to additional sales.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

250) ________________ is the marketing of additional related products to customers based on a previous purchase.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

251) ___________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer’s initial product or service selection.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

252) ___________ is a form of cross-selling in which a business sells a group of products or services together at a lower price than their combined individual prices.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

253) Bundling is a form of ______________ in which a business sells a group of products or services together at a lower price than their combined individual prices.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

254) ___________ applications help organizations plan campaigns that send the right messages to the right people through the right channels.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

255) Customer-___ CRM applications allow customers to help themselves.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

256) _______________ recognize customers who repeatedly use a vendor’s products or services.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

257) ___ CRM systems provide business intelligence by analyzing customer behavior and perceptions.

Difficulty: Easy

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

258) A(n) ___ CRM system is one that is hosted by an external vendor in the vendor’s data center.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

259) ___ CRM systems are CRM systems whose source code is available to developers and users.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

260) A(n) __________________ CRM system is an interactive system that enables an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium for the purpose of building and maintain relationships with its customers.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

261) A(n) __________________ CRM system’s code is available to developers and users.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

262) __________________ CRM is the use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

263) _______________ CRM systems help organizations to respond to customer product searches, requests, complaints, comments, ratings, reviews and recommendations in near real-time, 24/7/365.

Difficulty: Easy

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

264) A(n) ___ is the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end customers.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

265) ___ refers to the ability of all organizations within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

266) The ____________ supply chain segment is where sourcing or procurement for external suppliers occurs.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

267) The ____________ supply chain segment is where packaging, assembly, or manufacturing takes place.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

268) The ____________ supply chain segment is where distribution takes place, frequently by external distributors.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

269) _____________ flows are the physical products, raw materials, supplies, and so forth that flow along the chain.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

270) _____________ flows consist of data related to demand, shipments, orders, returns, and schedules, as well as changes in any of these data.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

271) _____________ flows involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

Difficulty: Easy

Section Reference 1: 11.4

Learning Objective 11.4: Describe the three components and the three flows of a supply chain.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

272) The function of ___ is to improve the processes a company uses to acquire the raw materials it needs to produce a product or service and then deliver that product or service to its customers.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

273) In the _____ model also called make-to-_____, the production process begins with a forecast.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

274) In the _____ model also called make-to-_____, the production process begins with a customer order.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

275) The ___ refers to erratic shifts in orders up and down the supply chain.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

276) _________________ is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

277) Vertical integration is a business strategy in which a company purchases its ______ suppliers to ensure that its essential supplies are available as soon as the company needs them.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

278) _________________ occurs when the supplier rather than the retailer manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

279) VMI occurs when the _____ rather than the retailer manages the entire inventory process for a particular product or group of products.

Difficulty: Easy

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

280) ___ is a communication standard that enables business partners to exchange routine documents electronically.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

281) ___ link business partners over the internet by providing them access to certain areas of each other’s corporate ___.

Answer 1: Extranets

Answer 2: intranets

Difficulty: Medium

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

282) ___ portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

283) Procurement portals automate the business processes involved in _______________ products between a single buyer and multiple suppliers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

284) ___ portals automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

285) Distribution portals automate the business processes involved in _________________ products from a single supplier to multiple buyers.

Difficulty: Easy

Section Reference 1: 11.6

Learning Objective 11.6: Explain the utility of each of the three major technologies that support supply chain management.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question Type: Essay

286) Describe the CRM process. How does a company differentiate between a low- and high-value repeat customers? Why should customers be treated differently? How do you think customer touch points should be adjusted based on customer value?

Difficulty: Hard

Section Reference 1: 11.1

Learning Objective 11.1: Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies.

Bloomcode: Comprehension, Application, Evaluation

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: 1) Marketing efforts – solicit potential customers
2) Some will purchase = customers and some will continue to purchase = repeat customers
3) Segment into high- and low-value customers based on lifetime value (how much money can be made off a customer over a number of years)
4) Some customers will be lost over time = customer churn
Differentiate based on how much money they spend over time
Why? Because some customers spend more money and should be “catered to” so they keep buying
Touch points: Everyone should have access to www, call center, etc., but not every customer should get targeted ads on their smartphone (potentially too impersonal or don’t want to irritate customers) or direct mail (this is expensive and is often ignored, so this should be reserved for special customers) or a sales representative (only large customers should have someone assigned to them) – students should discuss multiple touch points and justify their answer by using the terms high- and low-value customers (there could be multiple answers, but they should explain why not every touch point is appropriate for every customer)

287) What is the difference between customer-facing and customer-touching CRM applications? List and describe the different customer-facing and customer-touching CRM applications. Which applications would you use for high-value customers and why? Which applications would you use for low-value customers and why?

Difficulty: Hard

Section Reference 1: 11.2

Learning Objective 11.2: Discuss how businesses might use applications of each of the two major components of operational CRM systems.

Bloomcode: Synthesis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: Customer-facing = employees interact directly with customers; customer interaction centers to communicate with customers via web, phone, fax, and face-to-face, salesforce automation use to keep records of all components in a sales transaction process, marketing to develop a purchasing profile and get people to spend more, and campaign management applications to send the right messages to the right people; more likely to use these for high-value customers in addition to customer-touching
Customer-touching = customers interact with applications directly instead of through an employee; search and comparison, websites, customized products, personalized web pages, FAQs, e-mail, loyalty programs (rewarded for repeat purchases); these are more likely for low-value but also high-value if people want to self-serve

288) List and describe the five alternatives to traditional, on-premise CRM systems. Suppose your organization cannot afford an on-premise CRM system; which of these alternatives would you choose to implement and why? In your answer, you should consider the advantages and disadvantages of each option.

Difficulty: Medium

Section Reference 1: 11.3

Learning Objective 11.3: Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems.

Bloomcode: Application, Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Standard 3 : AACSB || Reflective Thinking

Solution: On-demand = vendor-hosted CRM system; benefit = cheaper (SaaS); limitation = unreliable vendors, modification difficult/impossible, integrating with existing software difficult/impossible, security and privacy
Mobile = CRM through mobile devices; benefit = interact with customers anywhere at any time; limitation = small screens and internet isn’t everywhere (limitation not in book)
Open-source = source code available; benefit = free, lots of applications, easy to customize, updates and bug fixes quickly available; limitation = quality control, no central authority for overseeing quality (depend on volunteers), must have same IT platform in place as the one on which the open-source CRM system was developed
Social = social media to get customers involved in collaborative conversations; benefit = getting customers involved and meet customer needs quickly and unexpectedly (Morton’s Steakhouse example); limitation = customers can say bad things (limitation not in book)
Real-time = organizations are able to respond to customer product searches, requests, complaints, comments, ratings, reviews, and recommendations in near real-time; benefit = meet customer needs quickly and efficiently (Southwest Airlines example); limitation = privacy (limitation not in book)

289) List and describe the five basic components of SCM. Explain how a company like Amazon may have used these components.

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: plan (strategy for managing all resources involved in meeting customer demand – efficient delivery, quality products, low cost), source (choose suppliers – relationships with suppliers – host their products on their website and possibly in their warehouses), make (manufacturing – not really relevant), deliver (logistics, coordinating receipt of customer orders, develop a network of warehouses, select carrier to transport, create an invoicing system to receive payments – warehouses in nearly every state – close to big cities for same day or next day shipping, deals with FedEx/UPS/USPS and starting their own shipping division with their own trucks), and return (handling defective, returned, or excess products from customers – make it easy to return products)

290) Describe problems that can occur along the supply chain. What are the consequences of these problems? How can companies address these problems?

Difficulty: Medium

Section Reference 1: 11.5

Learning Objective 11.5: Identify popular strategies to solve the multiple challenges of supply chains.

Bloomcode: Comprehension

Standard 1: AACSB || Communication

Standard 2 : AACSB || Technology

Solution: Problems = uncertainties in demand forecast caused by competition, price, weather, technological developments, economic conditions, customer confidence, delivery times (construction, traffic jams, quality problems); need to coordinate multiple activities, internal units, and business partners – lack of communication leads to the bullwhip effect (excessive inventory that increases as you move upstream)
Consequences = poor customer service, do not deliver products or services when and where customers need them, poor quality products, high inventory costs, revenue loss

Solutions = vertical integration (purchase upstream suppliers to ensure essential supplies are always available when needed), just-in-time (JIT) inventory systems (get raw materials just before they are needed – but does not eliminate excess inventory across the supply chain), vendor managed inventory (VMI, supplier rather than retailer manages the entire inventory process for a particular product or group of products)