1

The profit which is not confined to the organization is called Business Profit Social Profit Extra Profit Respectable Profit The spirit of social profit is investing financial and non-financial wealth (such as knowledge) possesses by the organizational community in the larger societal community.

2

“Respect for the customer. Respect for the employee. Respect for suppliers and other business partners. Respect for community.” It describes which core value for sustainable service businesses? Joy Teamwork Innovation Respect Great service companies compete through respect, one of the core values of sustainable service businesses.

3

“No one takes the blame and no one takes the credit in our culture; it is group effort”. It describes which core value for sustainable service businesses? Innovation Excellence Joy Teamwork Individuals collaboratively pooling in pursuit of a common purpose.

4

_ devoting considerable funds, time and other resources to protecting – and in some cases repairing – the places in the world where it takes customers. Tourism Responsible tourism Profitable tourism Business Responsible helps to inspire travelers to become more aware and informed about environmental issues.

5

“Individuals collaboratively pooling their resources in pursuit of a common purpose”. It describes which core value? Teamwork Joy Innovation Excellence Teamwork in one of the core values, it is a primary way through which companies enriches employee’s quality of work life.

6

The characteristic focus perspective classifies the purchasing function into _ stages. Five Four Eight Six The characteristic focus perspective classifies the purchasing function into four stages.

7

The bullwhip effect has _ key characteristics. Two Five Four Three The bullwhip effect has three key characteristics: oscillation, amplification and lag.

8

_ is defined as the single ownership of consecutive activities along the supply chain. Red queen effect Bullwhip effect Vertical integration Dynamic network Vertical integration is defined as the single ownership of consecutive activities along the supply chain. It must not be confused with the concept of supply chain integration.

9

The strategy of expanding on the supply side of the network is called Forward vertical integration Upstream vertical integration Backward or upstream vertical integration Backward vertical integration The direction of vertical integration is that should an operation expand by buying one of its suppliers or by buying one of its customers. The strategy of expanding on the supply side of the network is sometimes called backward or upstream vertical integration.

10

_ is about how a supply chain is constructed from all its participating firms. Supply chain operation Supply chain relationship Supply chain coordination Supply chain configuration Supply chain configuration is about how a supply chain is constructed from all its participating firms. This includes how big is the supply base for OEM (Original Equipment Manufacturer), how wide or narrow is the extent of vertical integration, how much of the OEM’s operations are outsourced.

11

For the organization, _ dynamic structure that aligned to products and market segment is more preferred than the _ hierarchical reporting lines. Horizontal, vertical Diagonal horizontal Vertical, horizontal Diagonal, vertical For the organization, horizontal dynamic structure that aligned to products and market segment is more preferred than the vertical hierarchical reporting lines, for the supply chain, a networked flexible s tructure with a small span of vertical integration is more responsive to the customer demand.

12

Strategic alliance usually takes on of the _ structural types. Three Four Two Five Strategic alliance is defined as an informal or formal arrangement between two or more companies with a common business objective. They usually will take on of the three structural types.

13

For bottleneck products, Kraljic recommended a purchasing strategy of Competitive bidding System contracting plus e-commerce solutions Securing supply plus searching for alternatives Performance based partnership For the bottleneck products, Kraljic proposed a purchasing strategy of securing supply plus searching for alternatives. You must secure your current supply because you have no choice.

14

In the characteristic focus perspective of the purchasing function, stage one is _ in character. Independent Passive Integrative Supportive The character focus perspective classifies the purchasing function into four stages. Stage one is passive in character. In this stage the purchasing can be defined as lack of strategic directions and is mainly reactive to operational requirements.

15

The components that may or may not cost too much in comparison with the total material cost, but they must have them and they are very difficult to get hold of are Bottleneck products Routine products Leverage products Strategic products Bottleneck products are those components that may or may not cost too much in comparison with the total material cost, but they must have them and they are very difficult to get hold of. The supply risk for those components is high and the availability of the components is not guaranteed.

16

Which of the following types of models which companies can imitate are these three components: Virtual Distributors, Exchanges and Enablers a part of? Sale-driven – Marketplaces Buyer-driven e-Marketplaces Horizontal e-Marketplaces Vertical e-Marketplaces Virtual Distributors, Exchanges and Enablers are all components of Vertical e -Marketplaces.

17

Which of the following is NOT a component of e-SRM Processing? Shopping Tools Requisitioning Product Catalog Management Value Added Services Value added services is NOT a component of e-SRM Processing.

18

Which of the following is NOT a model which companies can imitate? Sale-driven e-marketplaces Vertical e-marketplaces Buyer-driven e-marketplaces Horizontal e-marketplaces Companies can imitate with three types of models and Sale-driven e-marketplaces is not one of them.

19

e-SRM applications require technology support services. Which of the following is NOT an example of e -SRM Technology Services? Logistics Member Services Content Search and Management Security Logistics is not an example of e-SRM technology services; it is in fact an example of e-SRM processing. The rest however are all examples of e-SRM technology services.

20

What is e-SRM processing? It outlines the technical architecture that enables e-SRM front-end and backbone functions to be effectively applied to solve procurement strategies It details the enhancement of traditional buyer functions, such as sourcing and supplier relationships, through the use of Web toolsets It lists the new functions provided by the Internet that facilitate the transaction process It comprises the traditional database and execution functions utilized by purchasing to generate orders, perform receiving and transfer to accounts payable, and record supplier statistics e-SRM processing lists the new functions provided by the Internet that facilitate the transaction process.

21

What are e-SRM technology services? It details the enhancement of traditional buyer functions, such as sourcing and supplier relationships, through the use of Web toolsets It outlines the technical architecture that enables e-SRM front-end and backbone functions to be effectively applied to solve procurement strategies It lists the new functions provided by the Internet that facilitate the transaction process It comprises the traditional database and execution functions utilized by purchasing to generate orders, perform receiving and transfer to accounts payable, and record supplier statistics e-SRM technology services outline the technical architecture that enables e -SRM front-end and backbone functions to be effectively applied to solve procurement strategies

22

Which of the following is not a benefit of B2B e-marketplaces? Price Benefits from Increased Competition Improved Product Portfolio Enhanced Customer Management Increased Market Supply and Demand Visibility Improved Product Portfolio is not a benefit of B2B e-marketplaces.

23

Residual risk assessment evaluates the adequacy and effectiveness of the: External checks Both Internal checks and Balance in place Internal checks Balance in place Residual risk assessment evaluates the adequacy and effectiveness of internal checks and balances in place providing reasonable assurance that the likelihood and impact of an adverse event is brought down to an acceptable level.

24

Risk tolerance can vary from one risk type to another, depending on the importance to the organization’s following points, EXCEPT Values Objectives Key mission Resources Risk tolerance can vary from one risk type to another, but it has nothing to do with the resources available to the organization.

25

Lack of _ and defined risk tolerance could result in an organization’s over controlling a risk, which could place an excessive cost burden on the organization and/or stifle its ability to seize opportunities. Resources Available data Effective risk assessment process Time An effective risk assessment is required by an organization in order to reduce cost burden and over-controlling a risk. Without an effective risk management, the costs as well as the over controlling of a risk will increase.

26

Risk responses that yield immediate results are called: Quick yielder Immediate wins Incremental yielder Quick wins Quick win is the risk response that yield in immediate results.

27

Interval scales have numerically equal distance and: 2 equal lowest and 4 equal highest 1 equal lowest and 3 equal highest 3 equal lowest and 5 equal highest 1 equal lowest and 5 equal highest 1 equal lowest and 3 equal highest, but the highest is not 3 times greater than the lowest.

28

_ rating scales bring a greater degree of precision and measurability to the risk assessment process. Qualitative Quantitative Neither qualitative nor quantitative Both qualitative and quantitative Quantitative rating scales bring a greater degree of precision and measurability while qualitative terms need to be used when risks do not lend themselves to quantification, when credible data is not available, or when obtaining and analyzing data is not cost-effective.

29

What does intimacy with consumer group lead to? Knowing about business plans Knowing about product life cycle Knowing desired levels of supply channel relationship Knowing about emotional needs of customers Intimacy with the customer means knowing about their emotional needs, appealing to their intuition, and meeting the psychological desires for buying experiences that just make them feel better.

30

Which of the following is the channel strategy used to manage the customer groups? Channel mix strategy Horizontal channel strategy Individual integrated channel Vertical integrated channel Correct answer: vertical integrated channel

31

What is a key element that enables the customer to determine exactly how, what, and at what price they want to buy? Technology Marketing Planning Forecasting A key element is using technology to enable the customer to determine exactly how, what, and at what price they want to buy.

32

Which of the following is not the center of effective segmentation strategy? Lack of interest by suppliers Customer growth potential Brand recognition Possession of special skills and resources required by niche customers The elements of an effective segmentation strategy center on customer growth potential, lack of interest by competitors, possession of special skills and resources required by niche customers, and brand recognition or customer loyalty.

33

Which of the following inventory categories leads to lower overtime costs and lower training costs? Lot-size inventory Anticipation inventory Transportation inventory Fluctuation inventory It is anticipation inventory which leads to lower overtime costs, lower hiring and firing costs, lower training costs, lower subcontracting costs and lower capacity required.

34

Which of the following comes under MRO? Purchased items that have not become a part of the production process Items used in production but are not a part of the product Raw material that has entered the production process Finished products of the manufacturing process MRO: maintenance, repair and operational supplies are the items used in the production process but are not a part of the final product. Examples of MRO include: spare parts, lubricants, hand tools and cleaning supplies.

35

What is another name for lot-size inventory? Pipeline stock Cycle stock Movement stock Safety stock Another name for lot-size inventory is cycle stock.

36

What is cycle stock another name for? Transportation inventory Safety inventory Fluctuation inventory Lot-size inventory Cycle stock is another name for lot-size inventory.

37

What is the difference between anticipation inventory and fluctuation inventory? Anticipation inventory is in charge of taking care of unanticipated supply and demand while fluctuation inventory is in charge of building up stock for future demand Anticipation inventory is safety stock whereas fluctuation inventory is provided when all inventory is finished Anticipation inventory is in charge of building up stock for future demand whereas fluctuation inventory is in charge of taking care of unanticipated supply and demand Anticipation inventory is cycle stock whereas fluctuation inventory is safety stock Anticipation inventory is built upon the notion of the anticipation of demand increasing (future demand). Fluctuation inventory exists so that it can make up for the unanticipated, unpredictable change in demand and supply for inventory.

38

Inventory items are classified into groups such as raw materials, work-in-progress or even finished goods. But it also depends on the production environment. So if we were to take tires as an inventory item from a car manufacturer’s perspective, which classified group would it come under? Work-in-progress Distribution inventory Raw material Finished goods Tires are seen as component parts to a car from a car manufacturer’s perspect ive. If we were to look at it from a supplier’s perspective it would come under the category of finished goods.

39

Which of the following is the component of inventory decisions? Transportation inventory Pipeline inventory Seasonal inventory Anticipation inventory Inventory planners must consider four key inventory-related decisions that will influence how the inventory is to be managed. These decisions relate to cycle inventory, safety stock, seasonal inventory, and surplus and obsolete inventory.

40

What is production planning concerned with? Overall inventory Component parts End items Raw materials Production planning is concerned with overall inventory, master planning with end items, and material requirements planning with component parts and raw material.

41

What are inventories? Materials and supplies that a business requires for production process Machinery that a business requires for production process Cash that a business requires for production process Revenue generated by businesses Inventories are materials and supplies that a business or institution carries either for sale or to provide inputs or supplies to the production process.

42

What is master planning concerned with? Raw materials Overall inventory Component parts End items Production planning is concerned with overall inventory, master planning with end items, and material requirements planning with component parts and raw materials.

43

How much percentage of the total assets does inventory represent? 10% to 15% 30% to 50% 20% to 60% 5% to 15% On the balance sheet, they usually represent from 20% to 60% of total assets.

44

What is inventory management responsible for? Only forecasting the budget for inventory Planning and controlling inventory from the raw material stage to the customer. Only planning inventory from the raw material stage to the customer Planning and controlling inventory from the finished goods stage to the customer Inventory management is responsible for planning and controlling inventory from the raw material stage to the customer.

45

Inventory is shown as a part of _ in the balance sheet. Total assets Owner’s equity Long term liabilities Short term liabilities All businesses and institutions require inventories. Often they are a substantial part of total assets.

46

In process objective, the effect an implementation has on _ basic objectives should be assessed. Four Five Six Three In process objective, at minimum the effect an implementation has on five basic objectives should be assessed: quality, speed, dependability, flexibility and cost.

47

If strategic objectives are relatively unambiguous, but the effects of interventions are not known, nor is strategic decision making repetitive, we imply Expert control Operational control Intuitive control Trial and error control If strategic objectives are relatively unambiguous, but the effects of interventions are not known, nor is strategic decision making repetitive, learning by trial and error is not possible. Therefore says Hofstede, the organization has to view strategic control as more of an art than a science.

48

A key aspect of overcoming resistance to the changes implied by any implementation is To teach the people to whom the change would happen in the process Exclude the people to whom the change would happen in the process To include the people to whom the change would not happen in the process To include the people to whom the change would happen in the process A key aspect of overcoming resistance to the changes implied by any implementati on is to include the people to whom the change would happen in the process, and allow them to influence what changes would take place.

49

Implementation is the _ step of operations strategy. Second Last First Middle Operations strategy implementation is the way that strategies are operationalized or executed. Implementation is an important part of operations strategy even if it comes at the end of the operation strategy process.

50

If central operations have a predominantly top-down view of the world, it is likely to Take a programmatic approach to its activities Emphasize the way in which each business operations develop its competences and successfully deploy them Focus on the explicit performance achieved by each business operation Favor an emergent model of operations development If central operations have a predominantly top-down view of the world, it is likely to take a programmatic approach to its activities, emphasizing the implementation of overall company strategy.

51

Which is the following is a link of Dynamic Network original equipment manufacturer? Designer Demand Cash Balance There are four links to dynamic network OEM: these are supplier, contractor, designer and distributor.

52

Dynamic network is better than Stable network because It can maximize profit It is flexible and can quickly form new networks It is new It has minimum cost Dynamic network is more flexible than stable network in that it can quickly form a new network in supply market to cater for the changed demand both in volume and in variety.

53

All of them are linked with Dynamic network original equipment manufacturer EXCEPT Designer Contractor Watch man Supplier Dynamic network original equipment manufacturer is a network among supplier, contractor, designer, and distributor.

54

There are _ kinds of Original equipment manufacturer networks. Five Two Three Four There are two kinds of OEM that are stable network and dynamic network.

55

When Original equipment manufacturer does not have many of those long term tiered suppliers and customers, but instead uses dynamic and mostly short term suppliers and distributors to achieve high level of operational flexibility and strategic agility, it can be called the _. Supplier network New network Distributor network Dynamic network Description of Dynamic Network.

56

“Given that everything else is equal: the differences on time could make or break a supply chain”; it describes which dimension? Resource dimension Technology dimension Power dimension Time dimension Most of the key global supply chain challenges are time related and it appears to be that they are becoming even more time related than ever before us.

57

Which of the following is not the function of logistics? Transportation management Profitability measurement Performance measurement Warehouse management The three functions of logistics are: transportation management, warehouse management, performance measurement.

58

Which of the following is the cost involved in transportation? Billing and collecting Pickup and delivery All of the above Line haul The four basic costs are as follows: 1. Line haul; 2. Pickup and delivery; 3. Terminal handling; 4. Billing and collecting.

59

What does TL stand for? Tax Load Terminal Load Truck Load Traffic Load Correct answer: Truck load.

60

Which of the following is not the interrelated activity that affects customer service and the cost of providing it? Cost Warehouses Material handling Transportation In a distribution system, six interrelated activities affect customer serv ice and the cost of providing it: transportation, distribution inventory, warehouses, materials handling, protective packaging and order processing and communication.

61

What is global distribution? The movement of goods to and from locations around the world The movement of goods to and from locations nationally The movement of goods to and from one company to another The movement of goods to and from locations locally Global distribution is the movement of goods to and from locations around the world.

62

How many activities are there in a distribution system that affects customer service and the cost of providing it? Five Eight Six Four In a distribution system, six interrelated activities affect customer service and the cost of providing it.

63

Which of the following is not the reason for the return of goods? Damaged or defective products Seasonal inventories For sale into alternate markets Out-of-date inventories Goods are returned for many reasons that can include: quality demands by final customers (both real and perceived); Damaged or defective products; Inventories that result from over-forecast demand; Seasonal inventories; Out-of-date inventories and Re-manufacturing and refurbishment of products.

64

Which of the following is not the rule for forecasting with seasonality? Only use deseasonalized data to forecast Calculate the seasonal forecast by applying the seasonal index to the base forecast Forecast deseasonalized demand not seasonal demand Forecast seasonal demand not deseasonalized demand The rules for forecasting with seasonality are: only use deseasonalized data to forecast, forecast deseasonalized demand (base forecast), not seasonal demand and calculate the seasonal forecast by applying the seasonal index to the base forecast.

65

Which of the following is not the use of mean absolute deviation? Forecasting more accurately Contingency planning Tracking signals Safety stock The uses of mean absolute deviation are: tracking signals, contingency planning, and safety stock.

66

What does absolute refer to in mean absolute deviation? With reference to plus and minus The error Without reference to plus and minus An average Mean implies an average, absolute means without reference to plus and minus and deviation refers to the error.

67

When is the forecast and plan reviewed for a production plan? Quarterly Yearly Weekly Monthly Production planning is concerned with manufacturing activity for the next one to three years. Forecasts and plans will probably be reviewed monthly.

68

When is the forecast and plan reviewed for a master schedule plan? Weekly Monthly Yearly Quarterly Master production scheduling is concerned with production activity from the present to a few months ahead. Forecasts and plans will probably be reviewed weekly.

69

Forecasting must be made for strategic business plan, _ and master production schedule. Operation plan Manufacturing plan Forecasting plan Production plan Forecasts depend upon what is to be done. They must be made for the strategic business plan, the production plan, and the master production schedule.

70

Which of the following is important for production in strategic business plan? Plant expansion Procurement items Inventory levels Budget planning For production, the strategic business plan should provide sufficient time for resource planning: plant expansion, capital equipment purchase, and anything requiring a long lead time to purchase.

71

When does order processing occurs? Order is delivered Product starts to manufacture Ordered product is completed Customer order is received Order processing occurs when a customer’s order is received.

72

What does a copy of sales order state? Authorization to go ahead and plan for manufacture Terms and conditions of acceptance of the order What to produce, how much, and when to deliver Authorization to forecast and plan A copy of sales order stating the terms and conditions of acceptance of the order is sent to the customer.

73

Which of the following are things the organization’s supply chain needs to get it right before they can become competitive in the agility dominated operating environment? Investing in IT system Both A and B Developing KPI A only There are several measures, these are organizational structure change, process reengineering, cultivating appropriate culture, developing KPI, and investing in IT system.

74

Which of the following are things the organization’s supply chain needs to get it right before they can become competitive in the agility dominated operating environment? Process re-engineering Organizational structure change. Process re-engineering & Cultivating appropriate culture Cultivating appropriate culture Organizational structure change There are several measures, these are organizational structure change, process reengineering, cultivating appropriate culture, developing KPI, and investing in IT system.

75

Which supply chain will help to win maximum market share? Agile supply chain Lean supply chain Old supply chain New supply chain With volatile demand, it is very hard for firms to win maximum share until they employ agile supply chain management.

76

For agile supply chain the cost is supposed to be _. Minimum A lot Fixed Changing With the changing demand, the supply chain has to respond equally that is why the cost associated with agile supply chain always changes.

77

All of these the things which the organization’s supply chain need to get it right before they can become competitive in the agility dominated operating environment EXCEPT. Cultivating appropriate culture Process reengineering Cash flow management Organizational structure change There are several measures, these are organizational structure change, process reengineering, cultivating appropriate culture, developing KPI, and investing in IT system.

78

The levels of responsiveness a supply chain can deliver do make significant difference in terms of winning the _. Supplier Customer Market share Lottery Different supply chain systems are installed to satisfy customers need and mostly to cov er or win maximum market share in any product.

79

If customer’s demand is not changing, what is the alternative cost efficient supply chain? New supply chain Lean supply chain Old supply chain Agile supply chain Lean supply chain as opposed to agile supply chain is less responsive and more cost efficient if demand is not urgent.

80

In what area are CRM technologies used to provide customer-facing functions with focused order management tools and information to service the customer? Business Enterprise Backbones Demand Sensing Demand Shaping Operations Optimization It is demand shaping that provides customer-facing functions with focused order management tools and information to service the customer.

81

What does CTI stand for? Customer-Telephone Integration Customer Training Integration Computer Telephony Integration Computer Training Integration CTI officially stands for Computer Telephony Integration.

82

What is the difference between CRM and CEM? CRM focuses on the in-depth relationship between a customer and the companies and CEM focuses on the highest level of customer equity CRM focuses on the highest level of customer equity and CEM focuses on the in-depth relationship between a customer and the companies CRM is customer relationship management whereas CEM is customer electronic management CRM is responsible for optimum customer satisfaction whereas CEM is responsible for higher sales CRM is customer relationship management and it focuses on the highest level of customer equity and CEM customer experience management and it focuses on the in-depth relationships between a customer and the companies.

83

What kind of marketing came out due to the internet? Direct marketing Personal marketing Relationship marketing Target marketing The advent of the internet brought about personal marketing.

84

Which of the following is NOT a mission of customer care functions? Putting the customer in control by providing self-service and solution-centered support Segmenting customer behavior one-to-one to individualize goods and services Improving customer service while reducing costs Marketing CSR initiatives to the customer Marketing CSR initiatives to the customer is not a mission of customer care functions. The four missions are putting the customer in control by providing self-service and solution-centered support, segmenting customer behavior one-to-one to individualize goods and services, improving customer service while reducing costs and earning customer loyalty to gain a lifetime of business.

85

What kind of web-based application aggregates information, third party resources, and reference materials arranged in a specific Web content that can be customized and personalized to sell to and service prospects? Online order configurability Online catalogs Online order processing Online portal A portal is basically a web-based application that aggregates information, third party resources, and reference materials arranged in a specific Web content that can be customized and personalized to sell to and se rvice prospects, a known customer, or customer segments across multiple channels.

86

Which of the following enables customers to design their own products and services? Literature fulfillment Online order configurability Online design Online catalogs Online order configurability enables customers to design their own products and services through special configuration capabilities.

87

What is it that uses the value of a customer to the firm and also the value of the firm to the customer? LCV Marketing AMR research Value proposition Companies pursuing intimate customer strategies view LCV as detailing not only the value of a customer to the firm but also the value of the firm to the customer.

88

Which of the following is a factor that defines vertical integration? Balance in relationships The direction of vertical integration The extent of horizontal integration Non-exclusive balance between stages Vertical integration can be defined in terms of three factors: the direction of vertical integration, the extent of vertical integration and the balance among stages.

89

Which of the following are the three stages of trust in a partnership supply relationship? Qualitative, cognitive and bonding Calculative, cognitive and bonding Cognitive, calculative and qualitative Bonding, accepting and calculative Correct answer: calculative, cognitive and bonding

90

What is the fundamental purchasing and supply strategy issue? Decision to do or buy Buy Horizontal integration Lateral integration The decision whether to do (create, deliver, design, etc.) something within the organization (in-house) or buy it from external suppliers (outsource it) is the most fundamental purchasing and supply strategy issue.

91

Which of the following is the category of efforts to coordinate supply chain activity, except? Operational efficiency Information sharing Channel alignment Supply affectivity The categories for efforts to control supply chain activity are: information sharing, channel alignment and operational efficiency.

92

Which of the following is not the major cause of supply chain instability? Order batching Demand fluctuation Demand forecast updating Rationing and shortage gaming The four major causes are: demand forecast updating, order batching, price fluctuation an d rationing and shortage gaming.

93

Which of the following is the action taken in order to understand the nature of supply chain dynamics, except? Differentiation activities Integration activities Reconfiguration activities Coordination activities There are several actions that operations take in order to understand the nature of these dynamics. These include coordination activities, differentiation activities, and reconfiguration activities.

94

What is meant by “job rotation”? Expanding a worker’s job by clustering similar or related tasks into one job Changing the duration of the job Adding more meaningful, satisfying, and fulfilling tasks Training of workers to do several jobs so they can be moved from one job to another. Job design is an attempt to provide more satisfying, meaningful jobs. These improvements include job enlargement, job enrichment and job rotation. Job rotation is to train workers to do several jobs so they can be moved from one job to another. This is called cross training.

95

“Square” shows which of the activity? Storage Inspection Movement Operation All activities can generally be classified into one of six types. As a method of shorthand, there are six universally used symbols for these activities. The square shoes an inspection for quality or a check for quantity. Where process can be measured, regulated and controlled.

96

_ analysis can be used to select the problem with the greatest economic impact. Cost equalization analysis ABC analysis Pareto analysis Production analysis Pareto analysis can be used to select problems with the greatest economic impact. The theory states that a few items account for most of the cost or problems.

97

The aim of CPI is to increase the productivity by Better use of existing resources Buying better and faster machines Spending more money Increase the number of workers Continuous improvement is a low cost method of designing or improving work methods to maximize productivity. The aim is to increase productivity by better use of existing resources.

98

_ determines how equipment is used and managed. Factors influencing process design Continuous process improvement (CPI) Product development principles Cost equalization point (CEP) Continuous process improvement consists of a logical set of steps and techniques used to analyze processes and to improve them. CPI determines how equipment is used and managed.

99

“Being able to efficiently and effectively respond to the customer after the sale is critical in keeping current customers and acquiring new ones”. It describes which technology-driven process around customer? Service Web systems CRM applications Analytics It is the purpose of service technology to deal with customer problems after sale.

100

Electronic service surveys are example of which technology-driven process? CRM applications Web systems Analytics Service Internet and other communications technologies have been applied to the service function in the form of automated contact centers, computer telephony integration, CTI Web-based self-service, cyber agents, and electronic service surveys.

101

“The ability to act on the data and analysis mined from customer and marketing repositories to improve business processes so that they are more customer-centric”. It describes which technology-driven process around customer? CRM applications Analytics Service Web systems It is the goal of CRM analytics to act on a data and make every information possible customer-centric.

102

Which technology focuses on channel spanning functions such as forecasting and process design? Collaborative CRM New CRM Analytical CRM Operations CRM Collaborative CRM deals with forecasting and process design functioning.

103

The technology which consists in the capture, storage, extraction, reporting and analysis of historical customer data is _. Analytical CRM New CRM Collaborative CRM Operations CRM The third segment of technology in CRM is analytical CRM.

104

The technology which includes the traditional functions of customer service, ordering, invoicing/billing and sales statistics; it also includes portal and exchanges, email, EDI, SFA, and wireless customer management is called _. Collaborative CRM New CRM Analytical CRM Operations CRM Description of Operations CRM

105

Which of the following is not the function possessed by SFA marketplace? Opportunity management Quotation management Response management Pipeline management While the SFA marketplace contains a number of software vendors and competing products, they all possess to some degree the following functionality: contact management, opportunity management, quotation management, account management, knowledge management and sales process/activity management.

106

What is another name for opportunity management? Knowledge management Contact management Pipeline management Account management Opportunity Management is also known as pipeline management which assists in converting leads into sales.

107

Which of the following is true about the job of CCO? Assist suppliers to navigate the organization Define and enforce service standards Identify supplier touch points Search for methods to enrich the supplier experience Requiring strong operational, marketing, and financial skills, the CCO will identify customer touch points, define and enforce service standards, assist customers to navigate the organization, and search for methods to enrich the customer experience.

108

What research should be done when determining existing customer positioning? Qualitative Secondary Primary Random Qualitative research through surveys, face-to-face interviews, and other techniques should be conducted with each customer segment identified.

109

Chief customer officer acts as a _ between customers and the firm. Liaison Buffer Barrier Division An emerging management position that organizations have been establishing to achieve customer-centric organizations is the chief customer officer (CCO). Basically, this position acts as a liaison between customers and the firm.

110

Which of the following are the skills that a CCO has? Operational, promotional and financial Marketing, financial and operational Promotional, operational and marketing Financial, promotional and innovation Requiring strong operational, marketing, and financial skills, the CCO will ide ntify customer touch points, define and enforce service standards, assist customers to navigate the organization, and search for methods to enrich the customer experience.

111

What is the management position that organizations are establishing to achieve customer-centric organizations? Chief customer officer Management officer Chief manager Chief marketing officer An emerging management position that organizations have been establishing to achieve customer-centric organizations is the chief customer officer (CCO).

112

What does CCO stand for? Custom communication organization Chief customer officer Chief communication officer Customer centric organization Correct answer: chief customer officer

113

What is another word for job enlargement? Horizontal integration Vertical integration Direct integration Lateral integration Job enlargement expands workers jobs by clustering similar or related tasks into one job. For example, a job might be expanded to include a sequence of activities instead of only one activity. This is called horizontal integration.

114

What is the purpose of job enlargement? Assumes the workers have more knowledge and responsibility for understanding and performing the work Expands workers jobs by clustering similar or related tasks into one job Adds more meaningful, satisfying, and fulfilling tasks Trains workers to do several jobs so they can be moved from one job to another Job enlargement expands workers jobs by clustering similar or related tasks into one job. For example, a job might be expanded to include a sequence of activities instead of only one activity.

115

Which of the following is not one of the categories into which the root causes can be classified? People Capital Environment Machines The six categories are: materials, machines, people, methods, measurements and environment.

116

In how many categories can the root causes of a fishbone diagram be classified? Six Seven Four Five Generate some ideas about the main causes of the problem. Usually all probable root causes can be classified into six categories.

117

Which of the following is not the step involved in developing a fishbone? Brainstorm all possible causes for each of the main causes Once all the causes have been listed, try to identify the most likely root causes and work on these Generate some ideas about the main causes of the problem Identify the problem to be studied and state it in an essay The steps are: identify the problem to be studied and state it in a few words; generate some ideas about the main causes of the problem; brainstorm all possible causes for each of the main causes; and once all the causes have been listed, try to identify the most likely root causes and work on these.

118

One name for cause and effect diagram is fishbone. What is another name? Pareto diagram Impact diagram Ishikawa diagram Bone diagram Sometimes called a fishbone or an Ishikawa diagram, the cause-and-effect diagram is a very useful tool for identifying root causes.

119

Which of the following is the step involved in developing a fishbone? Once all the causes have been listed, try to identify the most likely root effects and work on these Generate some ideas about the main causes of the problem Identify the problem to be studied and state it in an essay Brainstorm all possible effects for each of the main causes The steps are: identify the problem to be studied and state it in a few words; generate some ideas about the main causes of the problem; brainstorm all possible causes for each of the main causes; and once all the causes have been listed, try to identify the most likely root causes and work on these.

120

What is the other name for cause and effect diagram? Impact Fishbone Pareto Bone Sometimes called a fishbone or an Ishikawa diagram, the cause-and-effect diagram is a very useful tool for identifying root causes.

121

Which of the following is not the dimension of pursuing world class excellence? Strategic fit Managing excellence Unique voice Capability to adapt The four dimensions are: unique voice, strategic fit, capability to adapt and operational excellence.

122

Which of the following is not the current trend in global supply chain management? Risk management involves end to end supply chains Market growth depends increasingly on global suppliers Supply chain volatility and market uncertainty is on the rise Emphasis on supply chain integration and empowerment The current trends are: risk management involves end to end supply chains; emphasis on supply chain integration and empowerment; supply chain volatili ty and market uncertainty is on the rise; market growth depends increasingly on global customers and suppliers networks and more cost optimized supply chain configurations.

123

Which of the following is the approach that helps supply chains to survive the global challenges? Market research Technological power Time efficiency Collaboration The approaches to help supply chains survive the global challenges are developing the blue ocean strategy; collaboration; divergent product portfolio; supply chain integration; and pursuing world class excellence.

124

Which of the following is the key strategic challenge in the technological dimension of global supply chain management, except? Disruptive technology power Supply chain network Inventory management Lead time challenge The key strategic challenges are lead time challenge, disruptive technology power, and supply chain network.

125

What has happened to the trade barriers in the global business environment? Increased Lowered Accepted Regulated The trade barriers in the global business environment have been demolished or at least significantly lowered.

126

The global business environment has emerged as a _. International market Inter-connected single market Efficient market e-market Correct answer: inter-connected single market.

127

Which of the following are the performance objectives of supply chains? Customer responsiveness, profitability, and reduced costs Customer responsiveness, profitability, and increased costs Customer retention, profitability, and increased costs Customer retention, profitability, and reduced costs All supply chains strive for three performance objectives: customer responsiveness, profitability, and reduced costs by optimizing asset utilization.

128

Which of the following is not a development trend that has created a new understanding for supply chain management? from strategic to operational view point from transactional to relationship based engagement from single enterprise to extended enterprise from functional to process perspective Correct answer: from strategic to operational view point.

129

How can operational excellence manifest? Through profitability Through efficiency Through strategic fit Through operational fit Operational excellence can only be manifested through its strategic fit.

130

What can be achieved, if a supply manager has a guidance regarding the end customer’s needs and wants? Market responsiveness Price responsiveness Supply responsiveness Demand responsiveness The guidance regarding the needs and wants of end customers, where they are, what they can afford etc. can help supply managers to achieve market responsiveness.

131

What is a supply chain? A group of independent organizations connected together through products and services which they add value to in order to deliver to the end customer. A group of suppliers add value to raw materials in order to deliver to OEM An organization adding value to products and services in order to deliver to customer A group of independent organizations separately add value to products and services in order to deliver to the customer Correct answer: a group of independent organizations connected together through products and services which they add value to in order to deliver to the end customer.