Baltzan6e Chapter08 TB AnswerKey

Business Driven Information Systems, 6e (Baltzan)
Chapter 8 Enterprise Applications: Business Communications
1) Integrations allow separate systems to communicate directly with each other, eliminating the
need for manual entry into multiple systems.
Answer: TRUE
Explanation: Integrations allow separate systems to communicate directly with each other,
eliminating the need for manual entry into multiple systems.
Difficulty: 1 Easy
Topic: Building a Connected Corporation through Integration
Bloom's: Remember
Learning Outcome: 08-01 Explain integrations and the role they play in connecting a
corporation.
Accessibility: Keyboard Navigation
Gradable: automatic
2) Integrations provide enterprisewide support and data access for a firm's operations and
business processes.
Answer: FALSE
Explanation: Enterprise systems provide enterprisewide support and data access for a firm's
operations and business processes.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
3) Middleware translates information between disparate systems.
Answer: TRUE
Explanation: Middleware translates information between disparate systems.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
1
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4) Enterprise application integration (EAI) middleware takes a new approach to middleware by
packaging commonly used applications together, reducing the time needed to integrate
applications from multiple vendors.
Answer: TRUE
Explanation: Enterprise application integration (EAI) middleware takes a new approach to
middleware by packaging commonly used applications together, reducing the time needed to
integrate applications from multiple vendors.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
5) Eintegration is the use of the Internet to provide customers with the ability to gain
personalized information by querying corporate databases and their information sources.
Answer: TRUE
Explanation: Eintegration is the use of the Internet to provide customers with the ability to gain
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
6) Data integration is the integration of a company's existing management information systems.
Answer: FALSE
Explanation: Application integration is the integration of a company's existing management
information systems.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
2
7) Application integration is the integration of data from multiple sources, which provides a
unified view of all data.
Answer: FALSE
Explanation: Data integration is the integration of data from multiple sources, which provides a
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
8) Application integration is the integration of a company's existing management information

systems.
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
9) Data integration is the integration of data from multiple sources, which provides a unified
view of all data.
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
3
10) A forward integration takes information entered into a given system and sends it
automatically to all downstream systems and processes.
Answer: TRUE
Explanation: A forward integration takes information entered into a given system and sends it
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
11) A backward integration takes information entered into a given system and sends it
automatically to all upstream systems and processes
Answer: TRUE
Explanation: A backward integration takes information entered into a given system and sends it
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
12) A backward integration takes information entered into a given system and sends it
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
4
13) A forward integration takes information entered into a given system and sends it
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
14) Integrations are achieved using middleware —several types of software that sit between and
provide connectivity for two or more software applications. Middleware translates information
between disparate systems.
Answer: TRUE
Explanation: Integrations are achieved using middleware —several types of software that sit
between and provide connectivity for two or more software applications. Middleware translates
information between disparate systems.
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
15) Enterprise application integration (EAI) middleware takes a new approach to middleware by
packaging commonly used applications together, reducing the time needed to integrate
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Understand
corporation.
Gradable: automatic
5
16) The customers' customer is upstream in the supply chain.
Answer: FALSE
Explanation: The customers' customer is downstream in the supply chain.
Difficulty: 2 Medium
Topic: Supply Chain Management
Bloom's: Understand
Learning Outcome: 08-02 Describe supply chain management along with its associated benefits
and challenges.
Gradable: automatic
17) Plan, source, make, deliver, and return are the five basic supply chain management
components.
Answer: TRUE
Explanation: Plan, source, make, deliver, and return are the five basic supply chain management
components.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
18) Plan, source, give, get, and return are the five basic supply chain management components.
Answer: FALSE
Explanation: Plan, source, make, deliver, and return are the five basic supply chain management
components.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
6
19) In the basic supply chain source refers to building relationships with suppliers to procure raw
materials.
Answer: TRUE
Explanation: In the basic supply chain source refers to building relationships with suppliers to
procure raw materials.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
20) In the basic supply chain source refers to planning for transportation of goods to customers.
Answer: FALSE
Explanation: In the basic supply chain deliver refers to planning for transportation of goods to
customers.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
21) In the basic supply chain return refers to supporting customers and product returns.
Answer: TRUE
Explanation: In the basic supply chain return refers to supporting customers and product returns.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
7
22) In the basic supply chain make refers to manufacturing products and create production
schedules.
Answer: TRUE
Explanation: In the basic supply chain make refers to manufacturing products and create
production schedules.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
23) In the basic supply chain return refers to prepare to manage all resources required to meet
demands.
Answer: FALSE
Explanation: In the basic supply chain plan refers to prepare to manage all resources required to
meet demands.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
24) In the basic supply chain plan refers to preparing to manage all resources required to meet
demand.
Answer: TRUE
Explanation: In the basic supply chain plan refers to preparing to manage all resources required
to meet demand.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
8
25) In the basic supply chain deliver refers to planning for transportation of goods to customers.
Answer: TRUE
Explanation: In the basic supply chain deliver refers to planning for transportation of goods to
customers.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
26) Materials are transformed into semifinished and finished products—the organization's own
production processes.
Answer: TRUE
Explanation: Materials are transformed into semifinished and finished products—the
organization's own production processes.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
27) Products are distributed to customers and their downstream customers at all levels.
Answer: TRUE
Explanation: Products are distributed to customers and their downstream customers at all levels.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
9
28) A back order is an unfilled customer order for a product that is out of stock.
Answer: TRUE
Explanation: A back order is an unfilled customer order for a product that is out of stock.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
29) Inventory cycle time is the time it takes to manufacture a product and deliver it to the
retailer.
Answer: TRUE
Explanation: Inventory cycle time is the time it takes to manufacture a product and deliver it to
the retailer.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
30) Customer order cycle time is the agreed upon time between the purchase of a product and the
delivery of the product.
Answer: TRUE
Explanation: Customer order cycle time is the agreed upon time between the purchase of a
product and the delivery of the product.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
10
31) Inventory turnover is the frequency of inventory replacement.
Answer: TRUE
Explanation: Inventory turnover is the frequency of inventory replacement.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
32) Inventory turnover is an unfilled customer order for a product that is out of stock.
Answer: FALSE
Explanation: A back order is an unfilled customer order for a product that is out of stock.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
33) Customer order cycle time is the time it takes to manufacture a product and deliver it to the
retailer.
Answer: FALSE
Explanation: Inventory cycle time is the time it takes to manufacture a product and deliver it to
the retailer.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
11
34) Inventory cycle time is the agreed upon time between the purchase of a product and the
delivery of the product.
Answer: FALSE
Explanation: Customer order cycle time is the agreed upon time between the purchase of a
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
35) Inventory cycle time is the frequency of inventory replacement.
Answer: FALSE
Explanation: Inventory turnover is the frequency of inventory replacement.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
36) Information technology's primary role in supply chain management is creating the
integrations or tight process and information linkages between functions within a firm - such as
marketing, sales, finance, manufacturing, and distribution – and between firms.
Answer: TRUE
Explanation: Information technology's primary role in supply chain management is creating the
integrations or tight process and information linkages between functions within a firm - such as
marketing, sales, finance, manufacturing, and distribution – and between firms.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
12
37) Effective and efficient supply chain management systems can enable an organization to
decrease the power of its buyers.
Answer: TRUE
Explanation: Organizations can decrease the power of its buyers through efficient and effective
SCM.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
38) Supply chain visibility is the ability to view all areas up and down the supply chain
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
39) Supply chain execution systems ensure supply chain cohesion by automating the different
activities of the supply chain.
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
13
40) Supply chain execution system is the ability to view all areas up and down the supply chain
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
41) Supply chain visibility ensure supply chain cohesion by automating the different activities of
the supply chain.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
42) Electronic data interchange (EDI) is a standard format for the electronic exchange of
information between supply chain participants
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
43) The bullwhip effect occurs when distorted product-demand information ripples from one
partner to the next throughout the supply chain
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
14
44) The bullwhip effect is a standard format for the electronic exchange of information between
supply chain participants
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
45) Electronic data interchange occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
46) A supply chain execution system might electronically route orders from a manufacturer to a
supplier using electronic data interchange (EDI), a standard format for the electronic exchange of
information between supply chain participants.
Answer: TRUE
Explanation: A supply chain execution system might electronically route orders from a
manufacturer to a supplier using electronic data interchange (EDI), a standard format for the
electronic exchange of information between supply chain participants.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
15
47) Supply chain event management (SCEM) enables an organization to react more quickly to
resolve supply chain issues.
Answer: TRUE
Explanation: Supply chain event management (SCEM) enables an organization to react more
quickly to resolve supply chain issues.
Difficulty: 1 Easy
Topic: Technologies Reinventing the Supply Chain
Bloom's: Remember
Learning Outcome: 08-03 Identify the three technologies that are reinventing the supply chain.
Gradable: automatic
48) Selling chain management applies technology to the activities in the order life cycle from
inquiry to sale.
Answer: TRUE
Explanation: Selling chain management applies technology to the activities in the order life
cycle from inquiry to sale.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
49) Collaborative engineering allows an organization to reduce the cost and time required during
the design process of a product.
Answer: TRUE
Explanation: Collaborative engineering allows an organization to reduce the cost and time
required during the design process of a product.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
16
50) Collaborative demand planning helps organizations reduce their investment in inventory
while improving customer satisfaction through product availability.
Answer: TRUE
Explanation: Collaborative demand planning helps organizations reduce their investment in
inventory while improving customer satisfaction through product availability.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
51) Selling chain management enables an organization to react more quickly to resolve supply
chain issues.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
52) Supply chain event management applies technology to the activities in the order life cycle
from inquiry to sale.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
17
53) Collaborative demand planning allows an organization to reduce the cost and time required
during the design process of a product.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
54) Collaborative engineering helps organizations reduce their investment in inventory while
improving customer satisfaction through product availability.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
55) Procurement is the purchasing of goods and services to meet the needs of the supply chain.
Answer: TRUE
Explanation: Procurement is the purchasing of goods and services to meet the needs of the
supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
18
56) Procurement can help a company answer the following question - What quantity of raw
materials should we purchase to minimize spoilage?
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
57) Logistics includes the processes that control the distribution, maintenance, and replacement
of materials and personnel to support the supply chain.
Answer: TRUE
Explanation: Logistics includes the processes that control the distribution, maintenance, and
replacement of materials and personnel to support the supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
58) Inbound logistics acquires raw materials and resources and distributes them to manufacturing
as required.
Answer: TRUE
Explanation: Inbound logistics acquires raw materials and resources and distributes them to
manufacturing as required.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
19
59) Outbound logistics distributes goods and services to customers.
Answer: TRUE
Explanation: Outbound logistics distributes goods and services to customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
60) Logistics controls processes inside a company (warehouse logistics) and outside a company
(transport logistics) and focuses on the physical execution part of the supply chain.
Answer: TRUE
Explanation: Logistics controls processes inside a company (warehouse logistics) and outside a
company (transport logistics) and focuses on the physical execution part of the supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
61) Materials management is the purchasing of goods and services to meet the needs of the
supply chain.
Answer: FALSE
supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
20
62) Logistics can help a company answer the following question - What quantity of raw
materials should we purchase to minimize spoilage?
Answer: FALSE
Explanation: Procurement can help a company answer the following questions:
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
63) Procurement includes the processes that control the distribution, maintenance, and
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
64) Outbound logistics acquires raw materials and resources and distributes them to
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
21
65) Inbound logistics distributes goods and services to customers.
Answer: FALSE
Explanation: Outbound logistics distributes goods and services to customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
66) Logistics includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave. Cradle to grave provides logistics support.
Answer: TRUE
Explanation: Logistics includes the increasingly complex management of processes,
information, and communication to take a product from cradle to grave. Cradle to grave provides
logistics support.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
67) Cradle to grave provides materials management support.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
22
68) Materials management includes activities that govern the flow of tangible, physical materials
through the supply chain such as shipping, transport, distribution, and warehousing.
Answer: TRUE
Explanation: Materials management includes activities that govern the flow of tangible, physical
materials through the supply chain such as shipping, transport, distribution, and warehousing.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
69) Logistics includes activities that govern the flow of tangible, physical materials through the
supply chain such as shipping, transport, distribution, and warehousing.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
70) The process of 3D printing (additive manufacturing) builds—layer by layer in an additive

process—a three-dimensional solid object from a digital model.
Answer: TRUE
Explanation: The process of 3D printing (additive manufacturing) builds—layer by layer in an
additive process—a three-dimensional solid object from a digital model.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
23
71) 3D Printing is a process that builds—layer by layer in an additive process- a three-
dimensional solid object from a digital model.
Answer: TRUE
Explanation: 3D Printing is a process that builds—layer by layer in an additive process- a three-
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
72) Drones include a process that builds—layer by layer in an additive process- a three-
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
73) 3D printing supports procurement.
Answer: TRUE
Explanation: 3D printing supports procurement.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
24
74) 3D printing supports materials management.
Answer: FALSE
Explanation: 3D printing supports procurement.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
75) RFID uses electronic tags and labels to identify objects wirelessly over short distances.
Answer: TRUE
Explanation: RFID uses electronic tags and labels to identify objects wirelessly over short
distances.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
76) RFID supports logistics.
Answer: TRUE
Explanation: RFID supports logistics.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
77) RFID supports procurement.
Answer: FALSE
Explanation: RFID supports logistics.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
25
78) Drones are unmanned aircraft that can fly autonomously, or without a human.
Answer: TRUE
Explanation: Drones are unmanned aircraft that can fly autonomously, or without a human.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
79) 3D printing is unmanned aircraft that can fly autonomously, or without a human.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
80) Drones support logistics.
Answer: TRUE
Explanation: Drones support logistics.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
81) Drones support materials management.
Answer: FALSE
Explanation: Drones support logistics.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
26
82) Robotics focus on creating artificial intelligence devices that can move and react to sensory
input.
Answer: TRUE
Explanation: Robotics focus on creating artificial intelligence devices that can move and react to
sensory input.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
83) Robotics supports materials management.
Answer: TRUE
Explanation: Robotics supports materials management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
84) Robotics supports procurement.
Answer: FALSE
Explanation: Robotics supports materials management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
27
85) Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are used to
create the digital designs and then manufacture the products.
Answer: TRUE
Explanation: Computer-aided design/computer-aided manufacturing (CAD/CAM) systems are
used to create the digital designs and then manufacture the products.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
86) RFID systems are used to create the digital designs and then manufacture the products.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
87) The maker movement is a cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things.
Answer: TRUE
Explanation: The maker movement is a cultural trend that places value on an individual's ability
to be a creator of things as well as a consumer of things.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
28
88) The robotics movement is a cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
89) Makerspaces is a community center that provides technology, manufacturing equipment, and
educational opportunities to the public that would otherwise be inaccessible or unaffordable.
Answer: TRUE
Explanation: Makerspaces, a community center that provides technology, manufacturing
equipment, and educational opportunities to the public that would otherwise be inaccessible or
unaffordable.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
90) Cradle to grave is a community center that provides technology, manufacturing equipment,
and educational opportunities to the public that would otherwise be inaccessible or unaffordable.
Answer: FALSE
unaffordable.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
29
91) Radio-frequency identification (RFID) uses electronic tags and labels to identify objects
wirelessly over short distances.
Answer: TRUE
Explanation: Radio-frequency identification (RFID) uses electronic tags and labels to identify
objects wirelessly over short distances.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
92) RFID's Electronic Product Code (RFID EPC) promotes serialization or the ability to track
individual items by using the unique serial number associated with each RFID tag.
Answer: TRUE
Explanation: RFID's Electronic Product Code (RFID EPC) promotes serialization or the ability
to track individual items by using the unique serial number associated with each RFID tag.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
93) A drone is an unmanned aircraft that can fly autonomously, or without a human.
Amazon.com is piloting drone aircraft for package deliveries.
Answer: TRUE
Explanation: A drone is an unmanned aircraft that can fly autonomously, or without a human.
Amazon.com is piloting drone aircraft for package deliveries.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
30
94) Robotics focuses on creating artificial intelligence devices that can move and react to sensory
input.
Answer: TRUE
Explanation: Robotics focuses on creating artificial intelligence devices that can move and react
to sensory input.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
95) The primary difference between operational CRM and analytical CRM is the direct
interaction between the organization and its suppliers.
Answer: FALSE
Explanation: The primary difference between operational CRM and analytical CRM is the direct
interaction between the organization and its customers.
Topic: The Benefits of CRM
Bloom's: Understand
Learning Outcome: 08-04 Describe customer relationship management along with its associated
benefits and challenges.
Gradable: automatic
96) Back-office operations deal directly with the customer.
Answer: FALSE
Explanation: Front-office operations deal directly with the customer.
Bloom's: Understand
Gradable: automatic
31
97) RFM stands for Regency, Frequency, and Monetary.
Answer: FALSE
Explanation: RFM stands for Recency (not regency), Frequency, and Monetary.
Bloom's: Understand
Gradable: automatic
98) The evolution of CRM is reporting, analyzing, and predicting.
Answer: TRUE
Explanation: The evolution of CRM is reporting, analyzing, and predicting.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
99) List generators fall under the category of the sales department's CRM tools.
Answer: FALSE
Explanation: List generators fall under the category of the marketing department's CRM tools.
Bloom's: Understand
Gradable: automatic
32
100) Contact management falls under the category of the customer service department's CRM
tools.
Answer: FALSE
Explanation: Contact management falls under the category of the sales department's CRM tools.
Bloom's: Understand
Gradable: automatic
101) Call scripting falls under the category of the sales department's CRM tools.
Answer: FALSE
Explanation: Call scripting falls under the category of the customer service department's CRM
tools.
Bloom's: Understand
Gradable: automatic
102) Customer service and support (CSS) is a part of operational CRM that automates service
requests, complaints, product returns, and information requests.
Answer: TRUE
Explanation: Customer service and support (CSS) is a part of operational CRM that automates
service requests, complaints, product returns, and information requests.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
33
103) Opportunity management CRM systems target sales opportunities by finding new
customers or companies for future sales.
Answer: TRUE
Explanation: Opportunity management CRM systems target sales opportunities by finding new
customers or companies for future sales.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
104) Opportunity management CRM occurs when a website has stored enough data about a
person's likes and dislikes to fashion offers more likely to appeal to that person.
Answer: FALSE
Explanation: Website personalization occurs when a website has stored enough data about a
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
105) Call scripting occurs when a customer service representative's answers customer inquiries
and solves problems by email and IMing.
Answer: FALSE
Explanation: A contact center or call center is where customer service representatives answer
customer inquiries and solve problems, usually by email, chat, or phone.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
34
106) Call scripting systems gather product details and issue resolution information that can be
automatically generated into a script for the representative to read to the customer.
Answer: TRUE
Explanation: Call scripting systems gather product details and issue resolution information that
can be automatically generated into a script for the representative to read to the customer.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
107) Web-based self-service systems allow customers to use the web to find answers to their
questions or solutions to their problems.
Answer: TRUE
Explanation: Web-based self-service systems allow customers to use the web to find answers to
their questions or solutions to their problems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
108) Click-to-talk functions, which allow customers to click on a button and talk with a
representative via the Internet.
Answer: TRUE
Explanation: Click-to-talk functions, which allow customers to click on a button and talk with a
representative via the Internet.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
35
109) CRM predicting technologies help organizations identify their customers across other
applications.
Answer: FALSE
Explanation: CRM reporting technologies help organizations identify their customers across
other applications.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
110) CRM analysis technologies help organizations segment their customers into categories such
as best and worst customers.
Answer: TRUE
Explanation: CRM analysis technologies help organizations segment their customers into
categories such as best and worst customers
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
111) CRM predicting technologies help organizations predict customer behavior, such as which
customers are at risk of leaving.
Answer: TRUE
Explanation: CRM predicting technologies help organizations predict customer behavior, such
as which customers are at risk of leaving.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
36
112) Analytical CRM supports traditional transactional processing for day-to-day front-office
operations or systems that deal directly with the customers.
Answer: FALSE
Explanation: Operational CRM supports traditional transactional processing for day-to-day
front-office operations or systems that deal directly with the customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
113) Operational CRM supports back-office operations and strategic analysis and includes all
systems that do not deal directly with the customers.
Answer: FALSE
Explanation: Analytical CRM supports back-office operations and strategic analysis and
includes all systems that do not deal directly with the customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
114) List generators compile customer information from a variety of sources and segment it for
different marketing campaigns.
Answer: TRUE
Explanation: List generators compile customer information from a variety of sources and
segment it for different marketing campaigns.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
37
115) Campaign management systems guide users through marketing campaigns by performing
such tasks as campaign definition, planning, scheduling, segmentation, and success analysis.
Answer: TRUE
Explanation: Campaign management systems guide users through marketing campaigns by
performing such tasks as campaign definition, planning, scheduling, segmentation, and success
analysis.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
116) Up-selling is selling additional products or services to an existing customer.
Answer: FALSE
Explanation: Cross-selling is selling additional products or services to an existing customer.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
117) Cross-selling is increasing the value of the sale.
Answer: FALSE
Explanation: Up-selling is increasing the value of the sale.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
38
118) Call scripting systems gather product details and issue resolution information that can be
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
119) Uplift modeling is a form of predictive analytics for marketing campaigns that attempts to
identify target markets or people who could be convinced to buy products.
Answer: TRUE
Explanation: Uplift modeling is a form of predictive analytics for marketing campaigns that
attempts to identify target markets or people who could be convinced to buy products.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
120) Uplift modeling gathers product details and issue resolution information that can be
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
39
121) Call scripting systems offer a form of predictive analytics for marketing campaigns that
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
122) Website personalization occurs when a website has stored enough data about a person's
likes and dislikes to fashion offers more likely to appeal to that person.
Answer: TRUE
Explanation: Website personalization occurs when a website has stored enough data about a
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
123) Supplier relationship management (SRM) focuses on keeping suppliers satisfied by

evaluating and categorizing suppliers for different projects.
Answer: TRUE
Explanation: Supplier relationship management (SRM) focuses on keeping suppliers satisfied by
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
40
124) Partner relationship management (PRM) discovers optimal sales channels by selecting the
right partners and identifying mutual customers.
Answer: TRUE
Explanation: Partner relationship management (PRM) discovers optimal sales channels by
selecting the right partners and identifying mutual customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
125) Employee relationship management (ERM) provides web-based self-service tools that
streamline and automate the human resource department.
Answer: TRUE
Explanation: Employee relationship management (ERM) provides web-based self-service tools
that streamline and automate the human resource department.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
126) Employee relationship management focuses on keeping suppliers satisfied by evaluating

and categorizing suppliers for different projects.
Answer: FALSE
Explanation: Supplier relationship management (SRM) focuses on keeping suppliers satisfied by
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
41
127) Supplier relationship management discovers optimal sales channels by selecting the right
partners and identifying mutual customers.
Answer: FALSE
Explanation: Partner relationship management (PRM) discovers optimal sales channels by
selecting the right partners and identifying mutual customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
128) Partner relationship management provides web-based self-service tools that streamline and
automate the human resource department.
Answer: FALSE
Explanation: Employee relationship management (ERM) provides web-based self-service tools
that streamline and automate the human resource department.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
129) Analytical CRM provides customer segmentation, which divides a market into categories
that share similar attributes such as age, location, gender, habits, and so on. By segmenting
customers into groups, it becomes easier to create targeted marketing and sales campaigns,
ensuring that you are not wasting resources marketing products to the wrong customers.
Answer: TRUE
Explanation: Analytical CRM provides customer segmentation, which divides a market into
categories that share similar attributes such as age, location, gender, habits, and so on. By
segmenting customers into groups, it becomes easier to create targeted marketing and sales
campaigns, ensuring that you are not wasting resources marketing products to the wrong
customers.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
42
130) Automatic call distribution routes inbound calls to available agents.
Answer: TRUE
Explanation: Automatic call distribution routes inbound calls to available agents.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
131) Interactive voice response directs customers to use touch-tone phones or keywords to
navigate or provide information.
Answer: TRUE
Explanation: Interactive voice response directs customers to use touch-tone phones or keywords
to navigate or provide information.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
132) Predictive dialing automatically dials outbound calls and forwards answered calls to an
available agent.
Answer: TRUE
Explanation: Predictive dialing automatically dials outbound calls and forwards answered calls
to an available agent.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
43
133) Interactive voice response routes inbound calls to available agents.
Answer: FALSE
Explanation: Automatic call distribution routes inbound calls to available agents.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
134) Automatic call distribution directs customers to use touch-tone phones or keywords to
navigate or provide information.
Answer: FALSE
Explanation: Interactive voice response directs customers to use touch-tone phones or keywords
to navigate or provide information.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
135) Interactive voice response automatically dials outbound calls and forwards answered calls
Answer: FALSE
Explanation: Predictive dialing automatically dials outbound calls and forwards answered calls
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
44
136) In the past, departments made decisions independent of each other.
Answer: TRUE
Explanation: In the past, departments made decisions independent of each other.
Difficulty: 1 Easy
Topic: Enterprise Resource Planning
Bloom's: Remember
Learning Outcome: 08-05 Describe enterprise resource planning along with its associated
Gradable: automatic
137) When a user enters or updates information in one ERP module, it is immediately and
automatically updated throughout the entire system.
Answer: TRUE
Explanation: When a user enters or updates information in one ERP module, it is immediately
and automatically updated throughout the entire system.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
138) Enterprise resource planning (ERP) integrates all departments and functions throughout an
organization into a single IT system (or integrated set of IT systems) so employees can make
decisions by viewing enterprisewide information about all business operations.
Answer: TRUE
Explanation: When a user enters or updates information in one ERP module, it is immediately
and automatically updated throughout the entire system.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
45
139) Core ERP components are the traditional components included in most ERP systems and
primarily focus on internal operations.
Answer: TRUE
Explanation: Core ERP components are the traditional components included in most ERP
systems and primarily focus on internal operations.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
140) Core ERP components are the extra components that meet organizational needs not covered
by the core components and primarily focus on external operations.
Answer: FALSE
Explanation: Extended ERP components are the extra components that meet organizational
needs not covered by the core components and primarily focus on external operations.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
141) Accounting and finance ERP components manage accounting data and financial processes
within the enterprise with functions such as general ledger, accounts payable, accounts
receivable, budgeting, and asset management.
Answer: TRUE
Explanation: Accounting and finance ERP components manage accounting data and financial
processes within the enterprise with functions such as general ledger, accounts payable, accounts
receivable, budgeting, and asset management
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
46
142) Production and materials management ERP components handle production planning and
execution tasks such as demand forecasting, production scheduling, job cost accounting, and
quality control.
Answer: TRUE
Explanation: Production and materials management ERP components handle production
planning and execution tasks such as demand forecasting, production scheduling, job cost
accounting, and quality control.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
143) Production and materials management ERP components track employee information
including payroll, benefits, compensation, and performance assessment and ensure compliance
with all laws
Answer: FALSE
Explanation: Human resources ERP components track employee information including payroll,
benefits, compensation, and performance assessment and ensure compliance with all laws
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
144) Elogistics manages the transportation and storage of goods.
Answer: TRUE
Explanation: Elogistics manages the transportation and storage of goods.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
47
145) Eprocurement is the business-to-business (B2B. online purchase and sale of supplies and
services.
Answer: TRUE
Explanation: Eprocurement is the business-to-business (B2B. online purchase and sale of
supplies and services.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
146) Balanced scorecard is a management system, as well as a measurement system, that a firm
uses to translate business strategies into executable tasks.
Answer: TRUE
Explanation: Balanced scorecard is a management system, as well as a measurement system,
that a firm uses to translate business strategies into executable tasks.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
147) Production and materials management is a core ERP component.
Answer: TRUE
Explanation: Production and materials management is a core ERP component.
Difficulty: 1 Easy
Topic: The Benefits of ERP
Bloom's: Remember
Gradable: automatic
48
148) Business intelligence is both a core and extended ERP component.
Answer: FALSE
Explanation: Business intelligence is an extended ERP component.
Bloom's: Understand
Gradable: automatic
149) SCM, CRM, and ERP are all extended ERP components.
Answer: FALSE
Explanation: Only SCM and CRM are extended ERP components. ERP is not extended ERP
component.
Bloom's: Understand
Gradable: automatic
150) Elogistics manage the transportation and storage of goods.
Answer: TRUE
Explanation: This is the definition of elogistics.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
49
151) Software customization modifies existing software according to the business's or user's
requirements.
Answer: TRUE
Explanation: Software customization modifies existing software according to the business's or
user's requirements.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
152) A two-tier ERP architecture allows an organization to have an on-premises ERP system
along with cloud ERP applications.
Answer: TRUE
Difficulty: 1 Easy
Topic: Integrating Technologies in ERP
Bloom's: Remember
Learning Outcome: 08-06 Discuss the current technologies organizations are integrating in
enterprise resource planning systems.
Gradable: automatic
153) The goal of ERP is to integrate all of the organizational systems into one fully functioning,
high-performance system that is capable of meeting all business needs and user requirements. Of
course, this goal is incredibly difficult to achieve because businesses and technologies
experience rapid change, and ERP must support mobility, cloud, SaaS, and tiered architectures
Answer: TRUE
Explanation: The goal of ERP is to integrate all of the organizational systems into one fully
functioning, high-performance system that is capable of meeting all business needs and user
requirements. Of course, this goal is incredibly difficult to achieve because businesses and
technologies experience rapid change, and ERP must support mobility, cloud, SaaS, and tiered
architectures
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
50
154) The primary concern with mobile ERP is security of sensitive data, including trade secrets,
financial data, and customer data.
Answer: TRUE
Explanation: The primary concern with mobile ERP is security of sensitive data, including trade
secrets, financial data, and customer data.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
155) SaaS ERP uses the cloud platform to enable organizations not only to unite around business
processes but to gather cloud data across supplier networks and supply chains to drive greater
efficiency in manufacturing projects.
Answer: TRUE
Explanation: SaaS ERP uses the cloud platform to enable organizations not only to unite around
business processes but to gather cloud data across supplier networks and supply chains to drive
greater efficiency in manufacturing projects.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
156) What allows separate systems to communicate directly with each other, eliminating the
need for manual entry into multiple systems?
A) Integration
B) Intelligence
C) Data interchange
D) Demand plan
Answer: A
Explanation: This is the definition of integration.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
51
157) What takes information entered into a given system and sends it automatically to all
downstream systems and processes?
A) Forward integration
B) Forward data interchange
C) Backward integration
D) Backward data interchange
Answer: A
Explanation: This is the definition of a forward integration.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
upstream systems and processes?
A) Forward integration
B) Forward data interchange
C) Backward integration
D) Backward data interchange
Answer: C
Explanation: This is the definition of a backward integration.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
52
159) What provides enterprise wide support and data access for a firm's operations and business
processes?
A) Enterprise systems
B) Enterprise application integration
C) Middleware
D) Enterprise application integration middleware
Answer: A
Explanation: This is the definition of enterprise systems.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
160) What connects the plans, methods, and tools aimed at integrating separate enterprise
systems?
C) Middleware
Answer: B
Explanation: This is the definition of EAI.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
53
161) What are several different types of software that sit between and provide connectivity for
two or more software applications?
C) Middleware
Answer: C
Explanation: This is the definition of middleware.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
162) What takes a new approach to middleware by packaging commonly used applications
together, reducing the time needed to integrate applications from multiple vendors?
C) Middleware
Answer: D
Explanation: This is the definition of enterprise application integration middleware.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
54
163) What is an application integration?
A) The integration of a company's existing management information systems.
B) The integration of data from multiple sources, which provides a unified view of all data.
C) Sends information entered into a given system automatically to all downstream systems and
processes.
D) Sends information entered into a given system automatically to all upstream systems and
processes.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
164) What is a data integration?

processes.
processes.
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
55
165) What is a forward integration?
processes.
processes.
Answer: C
Explanation: A forward integration sends information entered into a given system automatically
to all downstream systems and processes.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
166) What is a backward integration?

processes.
processes.
Answer: D
Explanation: A backward integration sends information entered into a given system
automatically to all upstream systems and processes.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
56
167) What are enterprise systems?
processes.
D) Enterprise wide support and data access for a firm's operations and business processes.
Answer: D
Explanation: Enterprise systems provide enterprisewide support and data access for a firm's
operations and business processes.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
168) What is enterprise application integration (EAI)?

A) Connects the plans, methods, and tools aimed at integrating separate enterprise system.
processes.
D) Enterprise wide support and data access for a firm's operations and business processes.
Answer: A
Explanation: Enterprise application integration (EAI) connects the plans, methods, and tools
aimed at integrating separate enterprise system.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
57
169) How are integrations achieved?
A) Connects the plans, methods, and tools aimed at integrating separate enterprise system.
B) Integrations are achieved using middleware —several types of software that sit between and
provide connectivity for two or more software applications.
processes.
D) Enterprisewide support and data access for a firm's operations and business processes.
Answer: B
Explanation: Integrations are achieved using middleware —several types of software that sit
between and provide connectivity for two or more software applications.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
170) What is middleware?

A) The use of the Internet to provide customers with the ability to gain personalized information
by querying corporate databases and their information sources.
C) Translates information between disparate systems.
D) Packages commonly used applications together, reducing the time needed to integrate
Answer: C
Explanation: Middleware translates information between disparate systems.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
58
171) What is enterprise application integration (EAI) middleware?
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
172) What is eintegration?

Answer: A
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
59
173) Which of the following is not an example of a primary enterprise system?
A) Supply chain management
B) Customer relationship management
C) Enterprise revenue planning
D) Enterprise resource planning
Answer: C
Explanation: Enterprise revenue planning is not an enterprise system discussed in this text.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
174) What is the use of the Internet to provide customers with the ability to gain personalized
information by querying corporate databases and their information sources?
A) Eintegration
B) Application integration
C) Data integration
D) Forward integration
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
60
175) What is the integration of a company's existing management information systems?
A) Backward integration
C) Data integration
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
176) What is the integration of data from multiple sources, which provides a unified view of all
data?
C) Data integration
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
61
downstream systems and processes?
C) Data integration
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
upstream systems and processes?
C) Data integration
Answer: A
automatically to all upstream systems and processes.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
62
179) What is data integration?
A) The integration of data from multiple sources, which provides a unified view of all data.
B) Takes information entered into a given system and sends it automatically to all downstream
systems and processes.
C) Takes information entered into a given system and sends it automatically to all upstream
systems and processes
D) The integration of a company's existing management information systems.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
180) What is a forward integration?

Answer: B
Explanation: Forward integration takes information entered into a given system and sends it
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
63
181) What is a backward integration?
Answer: C
Explanation: Backward integration takes information entered into a given system and sends it
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
182) What is application integration?

Answer: D
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
64
183) What is Supply chain management (SCM)?
A) The management of information flows between and among activities in a supply chain to
maximize total supply chain effectiveness and corporate profitability.
C) A means of managing all aspects of a customer's relationship with an organization to increase
customer loyalty and retention and an organization's profitability.
D) Connects the plans, methods, and tools aimed at integrating separate enterprise system.
Answer: A
Explanation: What is Supply chain management (SCM) is the management of information flows
between and among activities in a supply chain to maximize total supply chain effectiveness and
corporate profitability.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
184) What is enterprise resource planning (ERP)?

B) Integrates all departments and functions throughout an organization into a single IT system
(or integrated set of IT systems) so employees can make decisions by viewing enterprisewide
information about all business operations.
Answer: B
Explanation: Enterprise resource planning (ERP) integrates all departments and functions
throughout an organization into a single IT system (or integrated set of IT systems) so employees
can make decisions by viewing enterprisewide information about all business operations.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
65
185) What is customer relationship management (CRM)?
Answer: C
Explanation: Customer relationship management (CRM) is a means of managing all aspects of a
customer's relationship with an organization to increase customer loyalty and retention and an
organization's profitability.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
186) What is enterprise application integration (EAI)?

Answer: D
Explanation: Enterprise application integration (EAI) connects the plans, methods, and tools
aimed at integrating separate enterprise system.
Difficulty: 1 Easy
Bloom's: Remember
corporation.
Gradable: automatic
66
187) In which of the five basic supply chain activities do you prepare to manage all resources
required to meet demand?
A) Plan
B) Source
C) Deliver
D) Return
Answer: A
Explanation: In the plan activity you prepare to manage all resources required to meet demand.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
188) In which of the five basic supply chain activities do you build relationships with suppliers
to procure raw materials?
A) Plan
B) Source
C) Deliver
D) Return
Answer: B
Explanation: In the source activity you build relationships with suppliers to procure raw
materials.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
67
189) In which of the five basic supply chain activities do you manufacture products and create
production schedules?
A) Plan
B) Source
C) Deliver
D) Make
Answer: D
Explanation: In the make activity you manufacture products and create production schedules.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
190) In which of the five basic supply chain activities do you plan for the transportation of goods
to customers?
A) Plan
B) Source
C) Deliver
D) Return
Answer: C
Explanation: During the deliver activity you plan for the transportation of goods to customers.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
68
191) In which of the five basic supply chain activities do you support customers and product
returns?
A) Plan
B) Source
C) Deliver
D) Return
Answer: D
Explanation: In return you support customers and product returns.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
192) Where would you find the customers' customer in a typical supply chain?
A) Upstream
B) Downstream
C) In the middle
D) Not on the supply chain
Answer: B
Explanation: Customers' customer is downstream in a typical supply chain.
Bloom's: Understand
and challenges.
Gradable: automatic
69
193) Where would you find the suppliers' suppler in a typical supply chain?
A) Upstream
B) Downstream
C) In the middle
Answer: A
Explanation: Suppliers' supplier is upstream in a typical supply chain.
Bloom's: Understand
and challenges.
Gradable: automatic
194) Where would you find the manufacturer and distributor in a typical supply chain?
A) Upstream
B) Downstream
C) In the middle
Answer: C
Explanation: The manufacturer and distributor are in the middle of a typical supply chain.
Bloom's: Understand
and challenges.
Gradable: automatic
70
195) Walmart and Procter & Gamble (P&G) implemented a tremendously successful SCM
system. The system linked Walmart's ________ centers directly to P&G's ________ centers.
A) Manufacturing, distribution
B) Distribution, manufacturing
C) Stores, distribution
D) Distribution, stores
Answer: B
Explanation: Walmart's distribution centers are linked directly to P&G's manufacturing centers.
Bloom's: Understand
and challenges.
Gradable: automatic
196) What can effective and efficient supply chain management systems enable an organization
to accomplish?
A) Increase the power of its buyers
B) Increase its supplier power
C) Increase switching costs to increase the threat of substitute products or services
D) All of the above
Answer: B
Explanation: Answer A should state "decrease" the power of its buyers, and Answers C should
state "reduce" the threat of substitute products or services.
Difficulty: 3 Hard
Bloom's: Analyze
and challenges.
Gradable: automatic
71
197) Which of the following is not one of the five basic components of supply chain
management?
A) Plan
B) Source
C) Cost
D) Deliver
Answer: C
Explanation: Plan, source, make, deliver, and return are the five components of SCM.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
management?
A) Plan
B) Source
C) Analyze
D) Deliver
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
72
management?
A) Plan
B) Source
C) Sale
D) Deliver
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
200) What is it called when distorted product-demand information ripples from one partner to the
next throughout the supply chain?
A) Bullwhip effect
B) Demand planning systems
C) Supply chain planning systems
D) Supply chain execution systems
Answer: A
Explanation: This is the definition of the bullwhip effect.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
73
201) Which of the below represents the bullwhip effect?
A) Organizations know about employee events triggered downstream in the supply chain
B) Customers receive distorted product demand information regarding sales information
C) Distorted product-demand information ripples from one partner to the next throughout the
supply chain
D) The ability to view all areas up and down the supply chain
Answer: C
Explanation: Distorted product-demand information ripples from one partner to the next
throughout the supply chain represents the bullwhip effect.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
202) What is the ability to view all areas up and down the supply chain in real time?
A) Bullwhip effect
B) Demand planning software
C) Supply chain visibility
D) Supply chain execution software
Answer: C
Explanation: This is the definition of supply chain visibility.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
74
203) Which of the below metrics represents an unfilled customer order for a product that is out
of stock?
A) Back order
B) Inventory cycle time
C) Customer order cycle time
D) Inventory turnover
Answer: A
Explanation: This is the definition of back order.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
204) Which of the below metrics represents the time it takes to manufacture a product and
deliver it to the retailer?
A) Back order
Answer: B
Explanation: This is the definition of inventory cycle time.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
75
205) Which of the below metrics represents the agreed upon time between the purchase of a
product and the delivery of the product?
A) Back order
Answer: C
Explanation: This is the definition of customer order cycle time.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
206) Which of the below metrics represents the frequency of inventory replacement?
A) Back order
Answer: D
Explanation: This is the definition of inventory turnover.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
76
207) What is a back order?
A) An unfilled customer order for a product that is out of stock.
B) The time it takes to manufacture a product and deliver it to the retailer.
C) The agreed upon time between the purchase of a product and the delivery of the product.
D) The frequency of inventory replacement.
Answer: A
Explanation: Back order: An unfilled customer order for a product that is out of stock.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
208) What is inventory cycle time?

Answer: B
Explanation: Inventory cycle time: The time it takes to manufacture a product and deliver it to
the retailer.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
77
209) What is customer order cycle time?
Answer: C
Explanation: Customer order cycle time: The agreed upon time between the purchase of a
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
210) What is inventory turnover?

Answer: D
Explanation: Inventory turnover: The frequency of inventory replacement.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
78
211) What is supply chain visibility?
A) The ability to view all areas up and down the supply chain in real time.
B) Uses advanced mathematical algorithms to improve the flow and efficiency of the supply
chain while reducing inventory.
C) Ensures supply chain cohesion by automating the different activities of the supply chain.
D) Occurs when distorted product-demand information ripples from one partner to the next
throughout the supply chain.
Answer: A
Explanation: Supply chain visibility is the ability to view all areas up and down the supply chain
in real time.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
212) What is a supply chain planning system?

Answer: B
Explanation: Supply chain planning systems use advanced mathematical algorithms to improve
the flow and efficiency of the supply chain while reducing inventory.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
79
213) What is a supply chain execution system?
Answer: C
Explanation: Supply chain execution systems ensure supply chain cohesion by automating the
different activities of the supply chain.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
214) What is the bullwhip effect?

Answer: D
Explanation: The bullwhip effect occurs when distorted product-demand information ripples
from one partner to the next throughout the supply chain.
Difficulty: 1 Easy
Bloom's: Remember
and challenges.
Gradable: automatic
80
215) Which of the following is one of the business areas of supply chain management?
A) Logistics
B) Procurement
C) Materials Management
D) All of the above
Answer: D
Explanation: Logistics, procurement, and materials management are the three areas of supply
chain management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
216) What is the purchasing of goods and services to meet the needs of the supply chain?
A) Procurement
B) Logistics
C) Materials management
D) Bullwhip effect
Answer: A
supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
81
217) What includes the processes that control the distribution, maintenance, and replacement of
materials and personnel to support the supply chain?
A) Procurement
B) Logistics
D) Bullwhip effect
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
218) What includes activities that govern the flow of tangible, physical materials through the
supply chain such as shipping, transport, distribution, and warehousing?
A) Procurement
B) Logistics
D) Bullwhip effect
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
82
219) What is procurement?
A) The purchasing of goods and services to meet the needs of the supply chain.
B) Includes the processes that control the distribution, maintenance, and replacement of materials
and personnel to support the supply chain.
C) Includes activities that govern the flow of tangible, physical materials through the supply
chain such as shipping, transport, distribution, and warehousing.
Answer: A
supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
220) What is logistics?

Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
83
221) What is materials management?
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
222) What acquires raw materials and resources and distributes them to manufacturing as
required?
A) Inbound logistics
B) Outbound logistics
C) Logistics
D) Cradle to grave
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
84
223) What distributes goods and services to customers?
C) Logistics
D) Cradle to grave
Answer: B
Explanation: Outbound logistics distributes goods and services to customers. Logistics controls
processes inside a company (warehouse logistics) and outside a company (transport logistics)
and focuses on the physical execution part of the supply chain.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
224) What includes the increasingly complex management of processes, information, and
communication to take a product from cradle to grave?
C) Logistics
D) Cradle to grave
Answer: C
Explanation: Logistics includes the increasingly complex management of processes,
information, and communication to take a product from cradle to grave.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
85
225) Which of the following questions can procurement help a company answer?
A) What quantity of raw materials should we purchase to minimize spoilage?
B) How can we guarantee that our raw materials meet production needs?
C) At what price can we purchase materials to guarantee profitability?
D) All of the above
Answer: D
Explanation: All of these questions can be answered by procurement.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
226) Which of the following questions can logistics help a company answer?
A) What is the quickest way to deliver products to our customers?
B) What is the optimal way to place items in the warehouse for picking and packing?
C) What is the optimal path to an item in the warehouse?
D) All of the above
Answer: D
Explanation: Logistics can answer all of these questions.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
227) Which of the following questions can procurement help a company answer?
A) What is the quickest way to deliver products to our customers?
B) What is the optimal way to place items in the warehouse for picking and packing?
C) What is the optimal path to an item in the warehouse?
D) How can we guarantee that our raw materials meet production needs?
Answer: D
Explanation: How can we guarantee that our raw materials meet production needs?
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
86
228) Which of the following questions can logistics help a company answer?
A) What quantity of raw materials should we purchase to minimize spoilage?
B) How can we guarantee that our raw materials meet production needs?
C) At what price can we purchase materials to guarantee profitability?
D) What path should the vehicles follow when delivering the goods?
Answer: D
Explanation: What path should the vehicles follow when delivering the goods?
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
229) Which of the following questions can materials management help a company answer?
A) What are our current inventory levels?
B) What items are running low in the warehouse?
C) What items are at risk of spoiling in the warehouse?
D) All of the above
Answer: D
Explanation: All of these questions can be answered by materials management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
230) Which of the following questions can materials management help a company answer?
A) How do we dispose of spoiled items?
B) What laws need to be followed for storing hazardous materials?
C) Which items must be refrigerated when being stored and transported?
D) All of the above
Answer: D
Explanation: All of these questions can be answered by materials management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
87
231) What is 3D Printing?
A) A process that builds—layer by layer in an additive process- a three-dimensional solid object
from a digital model.
B) Uses electronic tags and labels to identify objects wirelessly over short distances.
C) Unmanned aircraft that can fly autonomously, or without a human.
D) Focus on creating artificial intelligence devices that can move and react to sensory input.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
232) What is RFID?

Answer: B
distances.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
88
233) What are drones?
Answer: C
Explanation: Drones an unmanned aircraft that can fly autonomously, or without a human.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
234) What are robotics?

Answer: D
Explanation: Robotics focus on creating artificial intelligence devices that can move and react to
sensory input.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
89
235) What is a process that builds—layer by layer in an additive process- a three-dimensional
solid object from a digital model?
A) 3D Printing
B) Robotics
C) Drones
D) RFID
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
236) What focuses on creating artificial intelligence devices that can move and react to sensory
input?
A) 3D Printing
B) Robotics
C) Drones
D) RFID
Answer: B
Explanation: Robotics focuses on creating artificial intelligence devices that can move and react
to sensory input.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
90
237) What are unmanned aircraft that can fly autonomously, or without a human?
A) 3D Printing
B) Robotics
C) Drones
D) RFID
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
238) What uses electronic tags and labels to identify objects wirelessly over short distances?
A) 3D Printing
B) Robotics
C) Drones
D) RFID
Answer: D
distances.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
91
239) What is computer-aided design/computer-aided manufacturing (CAD/CAM)?
A) Systems are used to create the digital designs and then manufacture the products.
B) A cultural trend that places value on an individual's ability to be a creator of things as well as
a consumer of things.
C) A community center that provides technology, manufacturing equipment, and educational
opportunities to the public that would otherwise be inaccessible or unaffordable.
D) Promotes serialization or the ability to track individual items by using the unique serial
number associated with each RFID tag.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
240) What is the maker movement?

Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
92
241) What is a makerspace?
Answer: C
unaffordable.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
242) What is an RFID's electronic product code?

Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
93
243) What are systems are used to create the digital designs and then manufacture the products?
A) Computer-aided design/computer-aided manufacturing
B) Maker movement
C) Makerspace
D) RFID electronic product code
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
244) What is a cultural trend that places value on an individual's ability to be a creator of things
as well as a consumer of things?
B) Maker movement
C) Makerspace
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
94
245) What is a community center that provides technology, manufacturing equipment, and
educational opportunities to the public that would otherwise be inaccessible or unaffordable?
B) Maker movement
C) Makerspace
Answer: C
unaffordable.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
246) What promotes serialization or the ability to track individual items by using the unique
serial number associated with each RFID tag?
B) Maker movement
C) Makerspace
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
95
247) What is supply chain event management (SCEM)?
A) Enables an organization to react more quickly to resolve supply chain issues.
B) Applies technology to the activities in the order life cycle from inquiry to sale.
C) Allows an organization to reduce the cost and time required during the design process of a
product.
D) Helps organizations reduce their investment in inventory while improving customer
satisfaction through product availability.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
248) What is selling chain management?

product.
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
96
249) What is collaborative engineering?
product.
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
250) What is collaborative demand planning?

product.
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
97
251) What enables an organization to react more quickly to resolve supply chain issues?
A) Supply chain event management
B) Selling chain management
C) Collaborative engineering
D) Collaborative demand planning
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
252) What applies technology to the activities in the order life cycle from inquiry to sale?
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
98
253) What allows an organization to reduce the cost and time required during the design process
of a product?
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
254) What helps organizations reduce their investment in inventory while improving customer
satisfaction through product availability?
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
99
255) Which of the following is not a current CRM trend?
A) Partner relationship management
B) Supplier relationship management
C) Employee relationship management
D) Distributor relationship management
Answer: D
Explanation: Distribution relationship management is not a CRM trend.
Bloom's: Understand
Gradable: automatic
256) Which of the following is not a valid way that a CRM system can collect information?
A) Accounting system
B) Order fulfillment system
C) Inventory system
D) Customer's personal computer
Answer: D
Explanation: A CRM system cannot collect information from a customer's personal computer.
Bloom's: Understand
Gradable: automatic
100
257) What occurs when a website can know enough about a person's likes and dislikes that it can
fashion offers that are more likely to appeal to that person?
A) Operational CRM
B) Analytical CRM
C) Website personalization
D) List generators CRM
Answer: C
Explanation: This is the definition of website personalization.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
258) Which of the following is not one of the three phases in the evolution of CRM?
A) Reporting
B) Analyzing
C) Processing
D) Predicting
Answer: C
Explanation: Processing is not one of the three phases in the evolution of CRM.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
101
259) What helps an organization identify its customers across applications?
A) CRM reporting technologies
B) CRM analyzing technologies
C) CRM processing technologies
D) CRM predicting technologies
Answer: A
Explanation: Reporting helps an organization identify its customers across applications.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
260) What is an organization performing when it asks questions such as "why was customer
revenue so high"?
Answer: B
Explanation: Why was customer revenue so high is analyzing.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
102
261) What is an organization performing when it asks questions such as "which customers are at
risk of leaving"?
Answer: D
Explanation: Which customers are at risk of leaving is predicting.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
262) Which question below represents a CRM reporting technology example?

A) Why did sales not meet forecasts?
B) What customers are at risk of leaving?
C) What is the total revenue by customer?
D) All of the above
Answer: C
Explanation: Total revenue by customer is a report.
Bloom's: Understand
Gradable: automatic
103
263) Which question below represents a CRM analyzing technology question?
D) All of the above
Answer: A
Explanation: Why did sales not meet forecasts is analyzing.
Bloom's: Understand
Gradable: automatic
264) Which question below represents a CRM predicting technology question?

D) All of the above
Answer: B
Explanation: What customers are at risk of leaving is predicting.
Bloom's: Understand
Gradable: automatic
104
265) Which of the following operational CRM technologies does the sales department typically
use?
A) Campaign management, contact management, opportunity management
B) Sales management, contact management, contact center
C) Sales management, call scripting, opportunity management
D) Sales management, contact management, opportunity management
Answer: D
Explanation: Sales management, contact management, and opportunity management are
generally used by sales departments.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
266) Which of the following operational CRM technologies does the marketing department
typically use?
A) Contact center, web-based self-service, call scripting
B) Contact center, cross-selling and up-selling, web-based self-service
C) List generator, opportunity management, cross-selling and up-selling
D) List generator, campaign management, cross-selling and up-selling
Answer: D
Explanation: List generator, campaign management, and cross-selling and up-selling are
generally used by marketing departments.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
105
267) Which of the following operational CRM technologies does the customer service
department typically use?
A) Contact center, web-based self-service, call scripting
B) Sales management, contact management, opportunity management
C) List generator, opportunity management, cross-selling and up-selling
D) List generator, campaign management, cross-selling and Up-selling
Answer: A
Explanation: Contact center, web-based self-service, and call scripting are generally used by
customer service departments.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
268) What compiles customer information from a variety of sources and segments the
information for different marketing campaigns?
A) Campaign management system
B) Cross-selling
C) Up-selling
D) List generator
Answer: D
Explanation: This is the definition of list generator.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
106
269) What guides users through marketing campaigns performing such tasks as campaign
definition, planning, scheduling, segmentation, and success analysis?
A) Campaign management system
B) Cross-selling
C) Up-selling
D) List generator
Answer: A
Explanation: This is the definition of campaign management system.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
270) What is McDonald's performing when it asks its customers if they would like to super-size
their meals?
A) Campaign management
B) Cross-selling
C) Up-selling
D) Down-selling
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
107
271) Which of the following represents sales force automation?
A) Helping an organization identify its customers across applications
B) Selling additional products or services to a customer
C) A system that automatically tracks all of the steps in the sales process
D) Selling larger products or services to a customer
Answer: C
Explanation: This is the definition of sales force automation.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
272) What automates each phase of the sales process, helping individual sales representatives
coordinate and organize all of their accounts?
A) Sales management CRM systems
B) Contact management CRM systems
C) Opportunity management CRM systems
D) All of the above
Answer: A
Explanation: This is the definition of sales management CRM systems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
108
273) What maintains customer contact information and identifies prospective customers for
future sales?
A) Sales management CRM system
B) Contact management CRM system
C) Opportunity management CRM system
D) Sales force automation CRM system
Answer: B
Explanation: This is the definition of contact management CRM systems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
274) What targets sales opportunities by finding new customers or companies for future sales?
A) Sales management system
B) Contact management system
C) Opportunity management system
D) Sales force automation system
Answer: C
Explanation: This is the definition of opportunity management CRM systems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
109
275) Which of the following was one of the first CRM components built to address the issues
that sales representatives were struggling with the overwhelming amount of customer account
information they were required to maintain and track?
A) Sales management system
B) Contact management system
C) Opportunity management system
D) Sales force automation system
Answer: D
Explanation: One of the first CRM components built to help address sales issues was the sales
force automation system.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
276) What is the primary difference between contact management and opportunity management?
A) Contact management deals with new customers, opportunity management deals with existing
customers
B) Contact management deals with existing customers, opportunity management deals with
existing customers
C) Contact management deals with new customers, opportunity management deals with new
customers
D) Contact management deals with existing customers, opportunity management deals with new
customers
Answer: D
Explanation: Contact management deals with existing customers, opportunity management deals
with new customers.
Bloom's: Understand
Gradable: automatic
110
277) Which of the following is where customer service representatives answer customer
inquiries and respond to problems through a number of different customer touchpoints?
A) Contact center
B) Web-based self-service
C) Call scripting
D) Website personalization
Answer: A
Explanation: This is the definition of contact center.
Bloom's: Understand
Gradable: automatic
278) What allows customers to use the web to find answers to their questions or solutions to their
problems?
A) Contact center
C) Call scripting
Answer: B
Explanation: This is the definition of web-based self-service.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
111
279) What accesses organizational databases that track similar issues or questions and
automatically generate the details to the CSR who can then relay them to the customer?
A) Contact center
C) Call scripting
Answer: C
Explanation: This is the definition of call scripting.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
280) What is automatic call distribution?

A) Automatically dials outbound calls and when someone answers, the call is forwarded to an
available agent
B) Directs customers to use touch-tone phones or keywords to navigate or provide information
C) A phone switch routes inbound calls to available agents
D) All of the above
Answer: C
Explanation: This is the definition of automatic call distribution.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
112
281) What is interactive voice response (IVR)?
available agent
D) All of the above
Answer: B
Explanation: This is the definition of interactive voice response.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
282) What is predictive dialing?

available agent
D) All of the above
Answer: A
Explanation: Predictive dialing automatically dials outbound calls and when someone answers,
the call is forwarded to an available agent.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
113
283) What is a contact center or call center?
A) A place where customer service representatives answer customer inquiries and solve
problems, usually by email, chat, or phone.
B) Allows customers to use the web to find answers to their questions or solutions to their
problems.
C) Gathers product details and issue resolution information that can be automatically generated
into a script for the representative to read to the customer.
D) A form of predictive analytics for marketing campaigns that attempts to identify target
markets or people who could be convinced to buy products.
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
284) What is Web-based self-service?

problems.
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
114
285) What is call scripting?
problems.
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
286) What is uplift modeling?

problems.
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
115
287) What is a place where customer service representatives answer customer inquiries and solve
problems, usually by email, chat, or phone?
A) Contact center
B) Web-based Self-service
C) Call scripting system
D) Uplift modeling
Answer: A
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
288) What allows customers to use the web to find answers to their questions or solutions to their
problems?
A) Contact center
D) Uplift modeling
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
116
289) What gathers product details and issue resolution information that can be automatically
generated into a script for the representative to read to the customer?
A) Contact center
D) Uplift modeling
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
290) What is a form of predictive analytics for marketing campaigns that attempts to identify
target markets or people who could be convinced to buy products?
A) Contact center
D) Uplift modeling
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
117
291) What divides a market into categories that share similar attributes such as age, location,
gender, habits, and so on?
A) Contact center
B) Customer segmentation
D) Uplift modeling
Answer: B
Explanation: Customer segmentation divides a market into categories that share similar
attributes such as age, location, gender, habits, and so on.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
292) Which of the following is not considered a feature in a contact center?

A) Automatic call distribution
B) Interactive voice response
C) Predictive dialing
D) Automatic predictive dialing
Answer: D
Explanation: Automatic predictive dialing does not exist.
Bloom's: Understand
Gradable: automatic
118
293) What focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for
different projects?
A) Supplier relationship management
B) Partner relationship management
D) All of the above
Answer: A
Explanation: This is the definition of supplier relationship management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
294) What discovers optimal sales channels by selecting the right partners and identifying
mutual customers?
D) All of the above
Answer: B
Explanation: This is the definition of partner relationship management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
119
295) What provides Web-based self-service tools that streamline and automate the human
resource department?
D) All of the above
Answer: C
Explanation: This is the definition of employee relationship management.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
296) Which of the following is a common customer service CRM metric?

A) Number of new prospective customers
B) Number of marketing campaigns
C) Average time to resolution
D) Revenue generated by marketing campaigns
Answer: C
Explanation: The average time to resolution is a common customer service CRM metric.
Bloom's: Understand
Gradable: automatic
120
297) Which of the following is a common marketing CRM metric?
A) Number of new prospective customers
B) Average number of service calls per day
C) Average time to resolution
D) Cost per interaction by marketing campaign
Answer: D
Explanation: Cost per interaction by marketing campaign is a common marketing CRM metric.
Bloom's: Understand
Gradable: automatic
298) What is a part of operational CRM that automates service requests, complaints, product
returns, and information requests?
A) Cross-selling
B) Up-selling
C) Campaign management system
D) Customer service and support
Answer: D
Explanation: Customer service and support (CSS) is a part of operational CRM that automates
service requests, complaints, product returns, and information requests.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
121
299) What guides users through marketing campaigns by performing such tasks as campaign
definition, planning, scheduling, segmentation, and success analysis?
A) Cross-selling
B) Up-selling
Answer: C
Explanation: Campaign management systems guide users through marketing campaigns by
performing such tasks as campaign definition, planning, scheduling, segmentation, and success
analysis.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
300) What is selling additional products or services to an existing customer?

A) Cross-selling
B) Up-selling
Answer: A
Explanation: Cross-selling is selling additional products or services to an existing customer.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
122
301) What is increasing the value of the sale?
A) Cross-selling
B) Up-selling
Answer: B
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
302) Which of the following will help an organization maintain consistent business operations?
A) Marketing, sales, and accounting departments decide to use the same vendor for a new system
B) Sales decides to implement a new system without considering other departments
C) A new office policy states that all managers can implement their own policies for purchasing
supplies and materials
D) Marketing decides to save customer's email addresses in the marketing system, even though
other organizational systems do not have this capability
Answer: A
Explanation: A great way to implement consistent business operations is for marketing, sales,
and accounting departments to use the same vendor for a new system.
Difficulty: 1 Easy
Bloom's: Analyze
Gradable: automatic
123
303) What is the key word in ERP?
A) Enterprise
B) Resource
C) Planning
D) None of the above
Answer: A
Explanation: The key word in ERP is "enterprise" and not necessarily resource or planning.
Bloom's: Understand
Gradable: automatic
304) What is enterprise resource planning?

A) The analysis and redesign of workflow within and between enterprises
B) A standardized set of activities that accomplish as specific task, such as processing a
customer's order
C) Integrates all departments and functions throughout an organization into a single IT system so
that employees can make decisions by viewing enterprise wide information on all business
operations
D) Involves managing all aspects of a customer's relationship with an organization to increase
customer loyalty and retention and an organization's profitability
Answer: C
Explanation: This is the definition of ERP.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
124
305) Which of the following is a component ERP vendors offer to differentiate themselves in the
marketplace?
A) Accounting
B) CRM
C) Sales
D) Human resources
Answer: B
Explanation: ERP vendors differentiate themselves by offering distinct functionality such as
CRM and SCM.
Bloom's: Understand
Gradable: automatic
306) Which of the following is not one of the three most common core ERP components
focusing on internal operations?
A) Accounting and finance
B) Production and materials management
C) Business intelligence
D) Human resources
Answer: C
Explanation: Business intelligence is an extended ERP component.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
125
307) Which activities do accounting and finance components perform?
A) Track employee information including payroll, benefits, compensation, performance
assessment, and assumes compliance with the legal requirements of multiple jurisdictions and
tax authorities.
B) Handle the various aspects of production planning and execution such as demand forecasting,
production scheduling, job cost accounting, and quality control.
C) Manage accounting data and financial processes within the enterprise with functions such as
general ledger, accounts payable, accounts receivable, budgeting, and asset management.
D) None of the above.
Answer: C
Explanation: These are the primary activities performed by the accounting and finance
components.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
308) Which activities do production and materials management components perform?

tax authorities.
Answer: B
Explanation: These are the primary activities performed by the production and materials
management components.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
126
309) Which activities do human resource components perform?
tax authorities.
Answer: A
Explanation: These are the primary activities performed by the human resource components.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
310) Which component is a credit-management feature typically included in?

A) Accounting and finance components
B) Production and managerial management components
C) Human resource components
D) Production and materials management components
Answer: A
Explanation: One of the best features of an accounting and finance component is its credit
management feature.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
127
311) Which component can help an organization determine such things as the identification of
individuals who are likely to leave the company unless additional compensation or benefits are
provided?
A) Accounting and finance components
B) Production and managerial management components
C) Human resource components
D) Production and materials management components
Answer: C
Explanation: These activities are performed by the human resource component.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
312) Which of the following is an extended ERP component?

A) Business intelligence
B) Ebusiness
C) Customer relationship management
D) All of the above
Answer: D
Explanation: All of the above are included in extended ERP.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
128
313) Which extended ERP component collects information used throughout an organization,
organizes it, and applies analytical tools to assist managers with decisions?
A) Business intelligence
B) Ebusiness
C) Customer relationship management
D) Supply chain management
Answer: A
Explanation: These are the primary activities performed by business intelligence.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
314) What are two of the primary features of ebusiness components?

A) Eprocurement
B) Elogistics
C) Eprocurement and elogistics
D) None of the above
Answer: C
Explanation: Elogistics and eprocurement are both included in the ebusiness component.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
129
315) Which of the following describes an ERP system?
A) ERP systems provide a foundation for collaboration between departments
B) ERP systems enable people in different business areas to communicate
C) ERP systems have been widely adopted in large organizations to store critical knowledge
used to make the decisions that drive the organization's performance
D) All of the above
Answer: D
Explanation: All of the above describe ERP systems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
316) What is at the heart of any ERP system?

A) Information
B) Employees
C) Customers
D) Database
Answer: D
Explanation: At the heart of an ERP system is a central database.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
130
317) Which of the following occurs when everyone involved in sourcing, producing, and
delivering the company's product works with the same information?
A) Eliminates redundancies
B) Cuts down wasted time
C) Removes misinformation
D) All of the above
Answer: D
Explanation: All of the above occur due to the use of an ERP system.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
318) Who are the primary users of SCM systems?

A) Sales, marketing, customer service
B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and distributors
D) All of the above
Answer: C
Explanation: The primary users of SCM systems are customers, resellers, partners, suppliers,
and distributors.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
131
319) What are the primary business benefits of an ERP system?
A) Sales forecasts, sales strategies, and marketing campaigns
B) Market demand, resource and capacity constraints, and real-time scheduling
C) Forecasting, planning, purchasing, material management, warehousing, inventory, and
distribution
D) All of the above
Answer: C
Explanation: The primary business benefits of an ERP system include forecasting, planning,
purchasing, material management, warehousing, inventory, and distribution.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
320) Who are the primary users of ERP systems?

A) Sales, marketing, customer service
B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and distributors
D) All of the above
Answer: B
Explanation: The primary users of ERP systems are accounting, finance, logistics, and
production.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
132
321) Which application's primary business benefits include sales forecasts, sales strategies, and
marketing campaigns?
A) CRM
B) SCM
C) ERP
D) All of the above
Answer: A
Explanation: CRM application's primary business benefits include sales forecasts, sales
strategies, and marketing campaigns.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
322) Which application's primary business benefits include market demand, resource and
capacity constraints, and real-time scheduling?
A) CRM
B) SCM
C) ERP
D) All of the above
Answer: B
Explanation: SCM application's primary business benefits include market demand, resource and
capacity constraints, and real-time scheduling.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
133
323) Which application's primary business benefits include forecasting, planning, purchasing,
material management, warehousing, inventory, and distribution?
A) CRM
B) SCM
C) ERP
D) All of the above
Answer: C
Explanation: ERP application's primary business benefits include forecasting, planning,
purchasing, material management, warehousing, inventory, and distribution.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
324) What modifies existing software according to the business's or user's requirements?
A) Software customization
B) Data integration
C) Elogistics
D) Eprocurement
Answer: A
Explanation: Software customization modifies existing software according to the business's or
user's requirements.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
134
325) What is key for business process support that spans functional areas and legacy systems?
B) Data integration is key for business process support that spans functional areas and legacy
systems.
C) Elogistics manages the transportation and storage of goods.
D) Eprocurement is the business-to-business (B2B) online purchase and sale of supplies and
services.
Answer: B
Explanation: Data integration is key for business process support that spans functional areas and
legacy systems.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
326) What manages the transportation and storage of goods?

B) Data integration is key for business process support that spans functional areas and legacy
systems.
C) Elogistics manages the transportation and storage of goods.
D) Eprocurement is the business-to-business (B2B) online purchase and sale of supplies and
services.
Answer: C
Explanation: Elogistics manages the transportation and storage of goods.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
135
327) What is the business-to-business (B2B) online purchase and sale of supplies and services?
B) Data integration
C) Elogistics
D) Eprocurement
Answer: D
Explanation: Eprocurement is the business-to-business (B2B) online purchase and sale of
supplies and services.
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
328) Explain integrations and the role they play in connecting a corporation.
Answer: Integrations allow separate systems to communicate directly with each other,
eliminating the need for manual entry into multiple systems. Building integrations allows
information sharing across databases along with dramatic increase of quality.
Difficulty: 3 Hard
Bloom's: Understand
corporation.
Gradable: manual
136
329) Describe supply chain management along with its impact on business.
Answer: A supply chain consists of all parties involved, directly or indirectly, in obtaining raw
materials or a product. To automate and enable sophisticated decision making in these critical
areas, Companies are turning to systems that provide demand forecasting, inventory control, and
information flows between suppliers and customers. Supply chain management (SCM) is the
management of information flows between and among activities in a supply chain to maximize
total supply chain effectiveness and corporate profitability. In the past, manufacturing efforts
focused primarily on quality improvement efforts within the company; today these efforts reach
across the entire supply chain, including customers, customers' customers, suppliers, and
suppliers' suppliers. Today's supply chain is an intricate network of business partners linked
through communication channels and relationships. Improved visibility across the supply chain
and increased profitability for the firm are the primary business benefits received when
implementing supply chain management systems. Supply chain visibility is the ability to view all
areas up and down the supply chain in real time. The primary challenges associated with supply
chain management include costs and complexity. The next wave in supply chain management
will be home-based supply chain fulfillment. No more running to the store to replace your
products because your store will come to you as soon as you need a new product.
Bloom's: Understand
and challenges.
Gradable: manual
330) Identify the three technologies that are reinventing the supply chain.
Answer: The goal of ERP is to integrate all of the organizational systems into one fully
architectures.
Difficulty: 3 Hard
Bloom's: Understand
Gradable: manual
137
331) Explain operational and analytical customer relationship management.
Answer: Customer relationship management (CRM) is a means of managing all aspects of a

customer's relationship with an organization to increase customer loyalty and retention and an
organization's profitability. CRM allows an organization to gain insights into customers'
shopping and buying behaviors. Every time a customer communicates with a company, the firm
has the chance to build a trusting relationship with that particular customer. Companies that
understand individual customer needs are best positioned to achieve success. Building successful
customer relationships is not a new business practice; however, implementing CRM systems
allows a company to operate more efficiently and effectively in the area of supporting customer
needs. CRM moves far beyond technology by identifying customer needs and designing specific
marketing campaigns tailored to each. The two primary components of a CRM strategy are
operational CRM and analytical CRM. Operational CRM supports traditional transactional
processing for day-to-day front-office operations or systems that deal directly with the
customers. Analytical CRM supports back-office operations and strategic analysis and includes
all systems that do not deal directly with the customers.
Difficulty: 3 Hard
Bloom's: Understand
Gradable: manual
332) Identify the core and extended areas of enterprise resource planning.
Answer: Enterprise resource planning (ERP) integrates all departments and functions throughout
an organization into a single IT system (or integrated set of IT systems) so employees can make
decisions by viewing enterprisewide information about all business operations. The current
generation of ERP, ERP-II, is composed of two primary components—core and extended. Core
ERP components are the traditional components included in most ERP systems and primarily
focus on internal operations. Extended ERP components are the extra components that meet
organizational needs not covered by the core components and primarily focus on external
operations.
Difficulty: 3 Hard
Bloom's: Understand
Gradable: manual
138
333) Discuss the current technologies organizations are integrating in enterprise resource
planning systems.
Answer: The goal of ERP is to integrate all of the organizational systems into one fully
architectures.
Difficulty: 3 Hard
Bloom's: Understand
Gradable: manual
139

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Business Driven Information Systems, 6e (Baltzan)

Chapter 8 Enterprise Applications: Business Communications

3) Middleware translates information between disparate systems.

6) Data integration is the integration of a company's existing management information systems.

8) Application integration is the integration of a company's existing management information

35) Inventory cycle time is the frequency of inventory replacement.

67) Cradle to grave provides materials management support.

70) The process of 3D printing (additive manufacturing) builds—layer by layer in an additive

73) 3D printing supports procurement.

76) RFID supports logistics.

77) RFID supports procurement.

80) Drones support logistics.

81) Drones support materials management.

83) Robotics supports materials management.

84) Robotics supports procurement.

96) Back-office operations deal directly with the customer.

98) The evolution of CRM is reporting, analyzing, and predicting.

116) Up-selling is selling additional products or services to an existing customer.

117) Cross-selling is increasing the value of the sale.

123) Supplier relationship management (SRM) focuses on keeping suppliers satisfied by

126) Employee relationship management focuses on keeping suppliers satisfied by evaluating

144) Elogistics manages the transportation and storage of goods.

147) Production and materials management is a core ERP component.

150) Elogistics manage the transportation and storage of goods.

164) What is a data integration?

166) What is a backward integration?

168) What is enterprise application integration (EAI)?

170) What is middleware?

172) What is eintegration?

180) What is a forward integration?

182) What is application integration?

184) What is enterprise resource planning (ERP)?

186) What is enterprise application integration (EAI)?

208) What is inventory cycle time?

210) What is inventory turnover?

212) What is a supply chain planning system?

214) What is the bullwhip effect?

220) What is logistics?

232) What is RFID?

234) What are robotics?

240) What is the maker movement?

242) What is an RFID's electronic product code?

248) What is selling chain management?

250) What is collaborative demand planning?

262) Which question below represents a CRM reporting technology example?

264) Which question below represents a CRM predicting technology question?

280) What is automatic call distribution?

282) What is predictive dialing?

284) What is Web-based self-service?

286) What is uplift modeling?

292) Which of the following is not considered a feature in a contact center?

296) Which of the following is a common customer service CRM metric?

300) What is selling additional products or services to an existing customer?

304) What is enterprise resource planning?

308) Which activities do production and materials management components perform?

310) Which component is a credit-management feature typically included in?

312) Which of the following is an extended ERP component?

314) What are two of the primary features of ebusiness components?

316) What is at the heart of any ERP system?

318) Who are the primary users of SCM systems?

320) Who are the primary users of ERP systems?

326) What manages the transportation and storage of goods?

Answer: Customer relationship management (CRM) is a means of managing all aspects of a