The factors to consider in the make-or-buy decision include costs, proprietary knowledge,
and:

A.

design history.

B.

available capacity.

C.

inventory balance.

D.

warehouse location.

A firm wants to lose customers that don't value the unique products and services the firm
offers and to attract and retain customers that want what the firm offers. Engaging in this
activity should allow the firm to:

A.

create a more loyal customer base.

B.

improve customer satisfaction rates.

C.

increase market share.

D.

target higher-profit customers.

After identifying the potential causes for delays in communicating demand information up
the supply chain, the trading partners should take which of the following actions?

A.

Implement a higher-speed data communications network.

B.

Change procedures so data is communicated more frequently.

C.

Identify the root causes for the delays.

D.

Map and analyze the value stream.

Using an independent service provider for logistics would be most appropriate in which of
the following situations?

A.

A shoe company that wants to penetrate a foreign market

B.

A business that owns plants and warehouses globally

C.

A financial services company that wants to expand its services

D.

A cable television company that wants to add services

Maintaining a long-term collaborative relationship with a trading partner requires:

A.

formal and informal communication.

B.

interconnected information systems.

C.

one partner regularly exercising power.

D.

standardized terms of agreement

Which of the following types of information would be an appropriate basis for a qualitative
forecast?

A.

Leading indicators

B.

Market research data

C.

Order history

D.

Shipment history

Demand management involves which of the following undertakings?

A.

Adjusting capacity to support expected demand

B.

Engaging in activities associated with customer relationship management

C.

Creating higher customer demand by improving performance in areas such as lead time
and service levels

D.

Understanding events and managing activities that could influence future demand

A company manufactures special products for select customers. When demand for these
products drops, the manufacturer can switch the production line to a commodity-type
product that can be sold on the open market at reduced terms to generate cash. The
company is executing a corporate strategy that is based on:

A.

customer focus and alignment.

B.

forecast accuracy.

C.

multiple downstream channels.

D.

multiple upstream supply chains

A firm has identified groups of customers based on specific characteristics the customers
desire from products and services the firm can provide. Characteristics include lead times,
pricing tiers, and service levels. The firm is engaged in which of the following activities?

A.

Customer differentiation

B.

Order winner segregation

C.

Market segmentation

D.

Channel definition

Which of the following outcomes is a benefit typically expected of customer relationship
management (CRM)?

A.

Reducing the size of the sales force by automating activities

B.

Gaining a better understanding of customer requirements

C.

Implementing automated inter-organizational processes

D.

Focusing sales efforts on the most profitable customers