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2nd review questions TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers. 2) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. 3) Supply chain inefficiencies can waste as much as 25 percent of a companys operating costs. 4) The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain. 5) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. 6) To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software. 7) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products. 8) You would expect to find PRM and ERM modules in the most comprehensive CRM software packages. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 9) Which of the following is not an example of next-generation enterprise applications? A) solutions incorporating SCM B) solutions incorporating SOA C) on-demand solutions D) open-source solutions 10) 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) CRM modules. B) ERP systems. C) ERM software. D) SCM software. 11) Which of the following is not true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software includes analytical tools to evaluate overall organizational performance. D) Enterprise software is expressly built to allow companies to mimic their unique business practices. 9) 1)


3) 4)







12) Supply chain complexity and scale increases when firms A) modify their existing workflows to comply with supply-chain management systems. B) move to globalization. C) produce products and services that coordinate with hundreds or more firms and suppliers. D) manage the procurement, manufacturing, and distribution functions themselves. 13) In order to achieve maximum benefit from an enterprise software package, a business A) selects only the software that best matches its existing business processes. B) uses only the processes in the software that match its own processes. C) customizes the software to match all of its business processes. D) changes the way it works to match the softwares business processes. 14) A companys suppliers and the processes for managing relationships with them is the A) external supply chain. B) supplier's internal supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. 15) Uncertainties arise in any supply chain because of A) inaccurate or untimely information. B) inefficient or inaccurate MIS. C) unforeseeable events. D) poor integration between systems of suppliers, manufacturers, and distributors. 16) A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy. A) bullwhip B) safety-stock C) frictionless D) just-in-time 17) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) planning; execution C) demand; continual D) upstream; downstream 18) A supply chain driven by actual customer orders or purchases follows a ________ model. A) build-to-stock B) pull-based model C) replenishment-driven D) push-based 19) The business value of an effective supply chain management system includes all of the following except A) increased inventory levels. B) cost reduction. C) faster time to market. D) supply matched to demand. 20) Which of the following would not be considered a contact point? A) intranet B) Web site C) e-mail









D) retail store


21) Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company? A) CLTV B) cost per sale C) cost per lead D) churn rate


22) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) continuous replenishment B) just-in-time strategies C) demand planning D) safety stock 23) The measurement of the number of customers who stop using or purchasing products or services from a company is called A) switching costs. B) CLTV. C) churn rate. D) switch rate. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 24) Identify two supply chain models. Which is better?



Answer Key Testname: UNTITLED3

1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) A 10) B 11) D 12) C 13) D 14) C 15) C 16) D 17) B 18) B 19) A 20) A 21) A 22) D 23) C 24) Push-based and pull-based models were discussed in the textbook. Push-based refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products. Pull-based refers to a supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered. Pull-based models are better.