Multiple-Choice Questions
1. / What unique approach did Whirlpool employ in defining a solution?a. Seeing the supply chain as originating with suppliers
b. Seeing the supply chain as a way to focus on customers
c. Seeing the supply chain as an extension of its sales practices
d. Seeing the supply chain as a tool secondary to knowledge management
Reference: p. 355
2. / (Analysis)
Why is overstocking warehouses not an effective solution for a problem of low availability?
a. It slows product time to market.
b. It is an inefficient use of raw materials.
c. It increases sales costs.
d. It increases inventory costs.
Reference: p. 362
3. / A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes:
a. process management software.
b. ERP systems.
c. groupware.
d. application software.
Reference: p. 358
4. / This software is built around thousands of predefined business processes:
a. process management software.
b. collaboration software.
c. enterprise software.
d. groupware.
Reference: p. 359
5. / In order to achieve maximum benefit from an enterprise software package, a business:
a. customizes the software to match all of its business processes.
b. uses only the processes in the software that match its own processes.
c. changes the way it works to match the software’s business processes.
d. selects only the software that best matches its existing business processes.
Reference: p. 359
6. / Supply chain complexity and scale:
a. affect both very small companies and large, global corporations.
b. were difficult to address before the Internet.
c. result when firms produce complex products and services.
d. result when firms implement full-scale supply-chain management systems.
Reference: p. 360
7. / IHOP purchased a middleware software package to integrate its data because:
a. middleware packages are built for adaptability.
b. packaged software is less expensive.
c. they were able to customize their business processes to this software.
d. this packaged software addressed their unique needs.
Reference: p. 370
8. / A company’s suppliers, supplier’s suppliers, and the processes for managing relationships with them is:
a. the supplier’s internal supply chain.
b. the external supply chain.
c. the upstream portion of the supply chain.
d. the downstream portion of the supply chain.
Reference: p. 361
9. / Inefficiencies arise in a supply chain because of:
a. inaccurate or untimely information.
b. poor integration between systems of suppliers, manufacturers, and distributors.
c. inefficient or inaccurate MIS.
d. unforeseeable events.
Reference: p. 361
10. / A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes which strategy:
a. just-in-time strategy.
b. stockless inventory.
c. ASAP inventory.
d. replenishment-only inventory.
Reference: p. 362
11. / Supply chain software can be classified as either:
a. supply chain source systems or supply chain recovery systems.
b. supply chain build systems or supply chain delivery systems.
c. supply chain planning systems or supply chain build systems.
d. supply chain planning systems or supply chain execution systems.
Reference: p. 364
12. / Supply chain planning systems:
a. track the physical status of goods.
b. identify the transportation mode to use for product delivery.
c. track the financial information involving all parties.
d. track the status of orders.
Reference: p. 364
13. / Systems to manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner best describes supply chain ______systems.
a. demand
b. delivery
c. planning
d. execution
Reference: p. 364
14. / Capabilities of supply chain planning systems would not include:
a. replenishment.
b. advanced scheduling and manufacturing planning.
c. demand planning.
d. order planning.
Reference: p. 365
15. / Some supply chain integration can be developed inexpensively by:
a. adapting to the business processes embedded in SCM packages.
b. using Internet technology
c. adapting PRM modules
d. customizing ERP software
Reference: p. 365
16. / A build-to-order supply-chain model is also called a:
a. supply-driven model
b. demand-driven model
c. replenishment-driven model
d. push-based model
Reference: p. 366
17. / Companies with effective supply chain management systems can expect:
a. improved customer service and responsiveness.
b. cost reduction.
c. reduced inventory levels.
d. all of the above.
Reference: p. 368
18. / Which of the following enterprise software deals with employee issues such as setting objectives, employee performance management, performance-based compensation, and employee training?
a. Enterprise systems software
b. Employee relationship management software
c. Supply chain management software
d. Customer relationship management software
Reference: p. 371
19. / What are the three general business functions that CRM software serves?
a. ERM, PRM, and CRM
b. Sales, customer service, and marketing
c. Sales and marketing, human resources, and finance and accounting
d. Sales and marketing, customer service, and human resources
Reference: p. 371
20. / Which capability would be classified as an operational CRM application?
a. SFA modules
b. Call center automation modules
c. Web-based customer self-service modules
d. All of the above
Reference: p. 374
21. / Which type of enterprise software would allow you to analyze CLTV?
a. PRM
b. Operational CRM
c. Analytical CRM
d. ERM
Reference: p. 375
22. / The measurement of the number of customers who stop using or purchasing products or services from a company is called:
a. switching costs.
b. churn rate.
c. CLTV.
d. switching rate.
Reference: p. 375
23. / Evaluation
Why is an order-to-cash service considered a complex process to implement as an enterprise application?
a. It is a modern, Internet-based concept that legacy systems typically do not provide.
b. It needs information from many different functions of the enterprise.
c. It requires the use of XML and Web services.
d. All of the above
Reference: p. 379
24. / From your reading of the Limited Brands case study, what was the cause of 400 merchandise trailers showing up at the parking lot of a distribution center that was designed to hold only 150 trailers?
a. Legacy applications used for SCM
b. Use of a complex, little-understood supply-chain execution system
c. Hundreds of SCM applications on different platforms being used
d. Lack of real-time reporting capabilities
Reference: pp. 385–386
25. / What was the most important impact of Major League Baseball’s Web site development efforts?
a. Created a strategic advantage for major league baseball
b. Increased the efficiency of baseball operations
c. Strengthened the relationship with customers and suppliers
d. Made it possible for major league baseball to survive
Reference pp 389–390
26. / Since the dot-com bubble burst of 2001, e-commerce revenues:
a. have essentially stagnated.
b. show signs of stabilizing.
c. have returned to solid growth.
d. have returned to exponential growth.
Reference: p. 392
27. / Which of the following is not one of the unique features of e-commerce technology?
a. Information density
b. Information asymmetry
c. Richness
d. Interactivity
Reference: p. 394
28. / The lowered costs of information storage, processing, and communication, along with the improvement of data quality has resulted in which unique quality of e-commerce?
a. Information density
b. Richness
c. Customization
d. Interactivity
Reference: p. 394
29. / Information density refers to:
a. the complexity and content of a message.
b. the total amount and quantity of information delivered to consumers by merchants.
c. the total amount and quantity of information available to all market participants.
d. the amount of information available to reduce price transparency.
Reference: p. 395
30. / Information ______exists when one party in a transaction has more information that is important for the transaction than the other party.
a. transparency
b. asymmetry
c. symmetry
d. imbalance
Reference: p. 396
31. / Varying a product’s price according to the supply situation of the seller is called:
a. menu pricing.
b. supply pricing.
c. dynamic pricing.
d. asymmetrical pricing.
Reference: p. 397
32. / Reducing the business process layers in a distribution channel is called:
a. disintermediation.
b. BPR.
c. market segmentation.
d. network effects.
Reference: p. 397
33. / Digital goods are goods that:
a. are produced digitally.
b. are sold over digital networks.
c. are delivered digitally.
d. all of the above.
Reference: p. 398
34. / Which of the following Internet business models does Amazon.com use?
a. Information broker
b. Transaction broker
c. Online service provider
d. Virtual storefront
Reference: p. 399
35. / Internet content providers:
a. generate from directing buyers to sellers.
b. save users money and time by processing online sales dealings.
c. provide a digital environment where buyers and sellers can establish prices for products.
d. create revenue by providing digital content over the Web.
Reference: p. 399
36. / Transaction brokers:
a. generate revenue from advertising or from directing buyers to sellers.
b. save users money and time by processing online sales dealings.
c. provide a digital environment where buyers and sellers can establish prices for products.
d. sell physical products directly to consumers or individual businesses.
Reference: p. 399
37. / Online marketplaces:
a. save users money and time by processing online sales dealings.
b. provide a digital environment where buyers and sellers can establish prices for products.
c. create revenue by providing digital content over the Web.
d. sell physical products directly to consumers or individual businesses.
Reference: p. 399
38. / Pure-play business models:
a. are primarily used in business-to-business electronic commerce.
b. do not sell a physical product.
c. are extensions of traditional bricks-and-mortar businesses.
d. did not have an earlier existing bricks-and-mortar business before they went to the Internet.
Reference: p. 404
39. / eBay is an example of:
a. a click-and-mortar business.
b. C2C electronic commerce.
c. B2C electronic commerce.
d. an online exchange.
Reference: p. 404
40. / Businesses retailing products and services directly via the Internet to individual consumers best describes:
a. B2B electronic commerce.
b. C2C electronic commerce.
c. M-commerce.
d. B2C electronic commerce.
Reference: p. 404
41. / Consumers selling goods and services electronically to other consumers best describes:
a. disintermediation.
b. C2C electronic commerce.
c. M-commerce.
d. B2C electronic commerce.
Reference: p. 404
42. / The presentation of Web pages tailored to a customer, based on the gathering of demographic information provided by the customer, is called:
a. interactive marketing.
b. personalization.
c. collaborative filtering.
d. localization.
Reference: p. 406
43. / Tools that record customer activities at Web sites and store them in a log for further analysis are called:
a. clickstream tracking tools.
b. customer tracking tools.
c. collaborative filtering tools.
d. filtering tools.
Reference: p. 405
44. / Tools that compare user behavior and interests to make purchasing recommendations to users are called:
a. clickstream tracking tools.
b. customer tracking tools.
c. collaborative filtering tools.
d. filtering tools.
Reference: p. 406
45. / The organizational department responsible for handling customer service issues is the:
a. service center.
b. customer support.
c. call center.
d. sales department.`1
Reference: p. 409
46. / The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:
a. procurement.
b. e-procurement.
c. supply chain management.
d. electronic commerce.
Reference: p. 410
47. / An extranet that links a large firm to its suppliers and other key business partners is called a(n):
a. private industrial network.
b. e-hub.
c. marketspace.
d. exchange.
Reference: p. 411
48. / A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n):
a. exchange.
b. vertical market.
c. private exchange.
d. e-hub.
Reference: p. 412
49. / The electronic payment system in which users make micropayments and purchases on the Web, accumulating a debit balance on their credit card or telephone bill is called a(n) ______payment system.
a. smart card
b. accumulated balance digital
c. stored value
d. digital cash
Reference: p. 416
50. / The electronic payment system that uses a credit card-size plastic card that stores digital information and that can be used for electronic payments in place of cash is called:
a. digital cash.
b. e-cash.
c. digital wallet.
d. smart card.
Reference: p. 416
51. / Analysis
What capability of its new knowledge management system allowed Southern Company to experience greater productivity from its engineers?
a. Knowledge repository
b. Expertise location and management
c. Intelligent techniques
d. Learning management
Reference: p. 429–430
52. / The flow of events or transactions captured by an organization’s system describes:
a. information.
b. data.
c. wisdom.
d. knowledge.
Reference: p. 432
53. / Expertise and experience of organizational members that has not been formally documented best describes:
a. wisdom.
b. information.
c. data.
d. tacit knowledge.
Reference: p. 432
54. / These systems digitize, index, and tag documents according to a coherent framework.
a. Wikis
b. CAD
c. Document management
d. LMS
Reference: p. 435
55. / The senior executive responsible for the firm’s knowledge management program is the:
a. CTO.
b. CIO.
c. CKO.
d. CEO.
Reference: p. 436
56. / These are specialized systems built for engineers, scientists, and other knowledge workers charged with discovering and creating new knowledge for a company:
a. KWS
b. LMS
c. Wikis
d. CAD systems
Reference: p. 436
57. / Fuzzy logic is a type of:
a. data mining.
b. neural network.
c. intelligent technique.
b. business intelligence.
Reference: p. 437
58. / Knowledge that already exists inside a firm in the form of formal reports or presentations is categorized as:
a. structured knowledge.
b. semistructured knowledge.
c. tacit knowledge.
d. unstructured knowledge.
Reference: pp. 437–438