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Chapter 9 – True/False

Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business.
True
Enterprise systems are typically built around one or two major business workflows.
False
Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers.
False
The upstream portion of the supply chain consists of the organization and processes for distributing and delivering products to the final suppliers
False
Supply chain inefficiencies can waste as much as 25 percent of a companies operating costs
True
Safety stock acts as an inefficiencies buffer for the lack of flexibility in the supply chain
False
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
True
Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product
False
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.
True
Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes
True
In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain
False
In a pull-based model of SCM systems,production master schedules are based on forecasts of demand for products.
False
Wal-mart’s strategy of continuous replenishment of inventory based on actual customer purchases is an example a pull-based SCM model
True
Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.
True
You would expect to find PRM and ERM modules in the most comprehensive CRM software packages
True
Major CRM application software vendors include Sebel Sytems, PeopleSoft, SAP and Salesforce.com
True
Cross-selling markets complementary products to customers
True
CRM software can help organizations identify high-value customers for preferential treatments
True
Analytical CRM uses a customer data warehouse and tools to analyze customer data warehouse and tools to analyze customer data collected from the firm’s customer touch points and from other sources.
True
Enterprise systems require fundamental changes in the way business operates.
True
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