1. Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

A) compete for customers based on service.
B) reach a larger number of potential customers.
C) reduce inventory to improve cash flow.
D) focus on attracting new customers.



2. A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

A) Price concessions
B) Make-or-buy
C) Distribution warehouse locations
D) Freight terms



3. Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

A) efficient material replenishment processes.
B) clearly identified roles for the buyer and seller.
C) a shared vision of added value.
D) a sole-source agreement.



4. Effective data acquisition for supply chain management requires:

A) establishment of market standards for forecasting accuracy.
B) establishment of a six-segment matrix classifying function and innovation.
C) identification of products that have market predictability.
D) identification of the proper supply chain profile for the product type.



5. The primary business advantage of developing an international supply chain is to:

A) reduce transportation costs.
B) decrease inventory costs.
C) limit the number of component suppliers.
D) realize economies of scale in production and distribution.