Best Problems and Solutions

Chapter 11

Multiple Choice Questions

1. Which of the following is a phase of implementing an ERP

system? (Choose all that apply.)

a. Feasibility study
b. Requirements analysis
c. Prototype development
d. Operations and maintenance
2. In a manufacturing firm, which of the following isn’t an
information flow in an SCM system?

a. Product
b. Customer
c. Information
d. Finances
3. Which of the following is a key decision in supply chain
management for manufacturing? (Choose all that apply.)

a. Location
b. Inventory
c. Production
d. Financing
4. Marketing strategies in a CRM system focus on which of
the following?

a. Transactions
b. Operational efficiency
c. Long-term customer relationships
d. Push technologies
5. Which of the following isn’t a category of ERP
applications?

a. Collaborative filtering
 b. E-commerce
c. Back end
d. Front end
True/False Questions

6. The key step in the vendor selection phase of ERP

implementation is developing selection criteria. True or False?

7. EDI takes place over VPNs only and can’t be used over the
Internet. True or False?

8. ERP applications for accounting and human resources are

considered back-end applications. True or False?

9. Salesforce automation is a common feature of CRM

software packages. True or False?

10. Collaborative filtering is useful for making

recommendations across unrelated categories. True or False?

Solutions to Multiple Choice and True/False Questions

1. A,B,C,D
2. C
3. A,B,C
4. C
5. B,C,D
6. TRUE
7. FALSE
8. TRUE
9. TRUE
10. FALSE
Projects

Answers to projects will vary.

1. Go to the Salesforce Web site at www.salesforce.com. What
are some applications and services this company offers? What are some
 unique features of these products? Who are some of this company’s
competitors?

2. Go to www.salesforce.com/customers/communications-
media/case-studies/cars.jsp, and review some case studies on CRM. Write a
one-page paper discussing three advantages of using CRM systems in these
cases.

3. Go to www-
01.ibm.com/software/success/cssdb.nsf/industrytsL2VW?
OpenView&Count=30&RestrictToCategory=gicss67sap_ConsumerProducts
&cty=en_us, and read some case studies on ERP. Write a one-page paper
discussing three advantages of using ERP systems in these cases.

4. Write a two-page report on how the Internet is used in SCM

systems. What are some challenges that must be overcome?

5. Write a two-page report explaining how e-procurement is

used in SCM systems. What types of organizations might benefit from e-
procurement? List some vendors that provide e-procurement services.

6. Write a two-page report on the advantages and

disadvantages of collaborative planning, forecasting and replenishment
(CPFR).

7. Write a two-page report on features in CRM software for

developing a CRM system. Include a discussion of the differences between an
on-premise CRM system versus a Web-based CRM system.

8. Write a two-page report outlining the advantages and

disadvantages of personalization technology. In addition to Amazon and
Google, what other companies use it to improve customer service?

9. Write a two-page report outlining the disadvantages of ERP

systems and explaining possible solutions for minimizing these problems.

10. Go to www-
01.ibm.com/software/success/cssdb.nsf/CS/STRD-7N2M2M?
 OpenDocument&Site=software&cty=en_us, and summarize the advantages of
using this ERP system.

Review Questions

1. List some functions that an SCM system can coordinate.

Answer—An SCM system coordinates the following functions:
 Procuring materials (can include resources and information, for
example, in service organizations).
 Transforming materials into intermediate and finished products or
services.
 Distributing finished products or services to customers.
2. What is the role of electronic data interchange in supply
chain management?
Answer—Electronic data interchange (EDI) enables business partners to send
and receive information on business transactions. EDI expedites delivering
accurate information in the following processes, for example:
 Transaction acknowledgments
 Financial reporting
 Invoice and payment processing
 Order status
 Purchasing
 Shipping and receiving
 Inventory management and sales forecasting

3. What are some SCM activities that Internet-enabled SCM

can improve?
Answer—The following are some of the SCM activities that Internet-enabled
SCM can improve:
 Purchasing/procurement: Purchasing and paying for goods and
services online, bargaining and renegotiating prices and term
agreements, using global procurement strategies
 Inventory management: Providing real-time stock information,
replenishing stock quickly and efficiently, tracking out-of-stock items
 Transportation: Customers using the Internet for shipping and
delivery information
 Order processing: Checking order placement and order status,
improving the speed and quality of order processing, handling returned
goods and out of—stock notifications to customers
4. What services do e-distributors offer in the B2B business
model?
 Answer—An e-distributor might offer a catalog containing a variety of
hardware and software products so that a network administrator can order all
the equipment and applications needed for an organization’s network instead
of purchasing components from several different vendors. Another common
offering from e-distributors is maintenance, repair, and operations (MROs)
services; a company can purchase an MRO package that might include
services from different vendors, but the e-distributor coordinates them into
one package for customers.

5. What is a reverse auction?

Answer—A reverse auction invites sellers to submit bids for products and
services. In other words, there’s one buyer and many sellers: a many-to-one
relationship. The buyer can choose the seller that offers the service or product
at the lowest price.
6. Describe how some IT tools and technologies are used in a
CRM system.
Answer—Several IT tools discussed throughout this book are used to improve
customer service. For example, e-mail, the Internet, Web portals, and
automated call centers have played a major role in CRM systems. E-
commerce sites use e-mail to confirm items purchased, confirm shipping
arrangements, and send notifications on new products and services. Web
portals and extranets, such as FedEx.com, allow customers to perform tasks
such as checking the status of shipments and arranging a package pickup.
Database systems, data warehouses, and data-mining tools are effective in
tracking and analyzing customers’ buying patterns, which helps businesses
meet customers’ needs.
7. Explain the difference between personalization and
customization.
Answer—Personalization is the process of satisfying customers’ needs,
building customer relationships, and increasing profits by designing goods and
services that meet customers’ preferences better. It involves not only
customers’ requests, but also the interaction between customers and the
company. Customization allows customers to modify the standard offering,
such as selecting a different home page to be displayed each time you open
your Web browser.
8. How does collaborative filtering work?
Answer—Collaborative filtering (CF) searches for specific information or
patterns, using input from multiple business partners and data sources. It
identifies groups of people based on common interests and recommends
products or services based on what members of the group purchased or didn’t
purchase.
9. How does knowledge management improve customer
service?
Answer—Knowledge management plays a key role in the success of a CRM
system because it helps businesses use their knowledge assets to improve
customer service and productivity, reduce costs, and generate more revenue.
10. What is an enterprise resource planning system?
Answer—Enterprise resource planning (ERP) is an integrated system that
collects and processes data and manages and coordinates resources,
information, and functions throughout an organization.