Deck 8: Order Management and Customer Service

Question 1

Order management system represents the principal means by which:

A) price and lead time add value.
B) buyers and sellers communicate information relating to individual orders of product.
C) orders are handled inside the company.
D) customers are segmented by profitability.

Answer 1

B

Question 2

Activity-based costing works well in warehouse-type environments but does not work for customer service applications.

Answer 2

False

Question 3

Customer service is anything that touches the customer.

Answer 3

True

Question 4

Customer service can be defined as:

A) a philosophy.
B) order fulfillment.
C) the SCOR model.
D) anything that touches the customer.

Question 5

Customer service is of equal importance to both logistics and marketing.

Question 6

What are the steps in the CRM process?

A) Segment customer base, then measure service, and improve
B) Segment customer base, then identify service/package
C) Measure service, then improve
D) Segment customer base, identify service/package, then measure service, and improve

Question 7

The buyer and seller look at order time from the same perspective.

Question 8

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.

Question 9

There are ten principal activities to the OTC model.

Question 10

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of servicing a customer's orders relative to how, how much, what, and when a customer orders.

Question 11

Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined measure (e.g., cases).

Question 12

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.

Question 13

"Order to cash" and "order cycle" are the same.

Question 14

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability.

Question 15

Those customers who are in the "Danger Zone" segment are:

A) likely to switch to a competitor.
B) have been a customer for less than a year.
C) the least profitable.
D) are using ABC to drive down the price.

Question 16

Activity Based Costing:

A) is useful for distributions centers but not customers.
B) can be combined with customer segmentation.
C) is too sophisticated for many applications.
D) is a very new management science.

Question 17

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.

A) gross sales
B) back orders
C) the forecast
D) gross margin

Question 18

A stockout always results in a back order.

Question 19

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.

Question 20

Customer relationship management is a new concept only recently receiving attention.

Question 21

The traditional role of customer service at the interface between marketing and logistics manifests itself through the _____ dimension of the marketing mix.

A) price
B) place
C) product
D) promotion

Question 22

Customer service is often viewed as the primary interface between logistics and marketing. Discuss the nature of this interface and how it might be changing.

Question 23

The term replenishment cycle refers to:

A) orders for raw material.
B) material management.
C) the acquisition of additional inventory.
D) inventory and material management.

Question 24

Which is NOT part of dependability?

A) Cycle time
B) Safe delivery
C) Correct orders
D) Consistent pricing

Question 25

Define and discuss the Marketing/Logistics interface.

Question 26

Explain how order management and customer service are related.

Question 27

There are two parts to the order management process. The first is _____ and the second is _____.

A) managing the order after it is received; influencing how the customer orders
B) shipping the order; taking the order
C) influencing how the customer orders; managing the order after it is received
D) the Internet model; the traditional model

Question 28

Describe the two approaches to order management. How are they different? How are they related?

Question 29

Compare and contrast the concepts of order-to-cash cycle time and order cycle time.

Question 30

Define and discuss Activity Based Costing, including its impact on profitability.

Question 31

Which of the following order cycle lengths would require the buyer to hold the most total inventory during lead time?

A) 10 days, +/- 2 days
B) 10 days, +/- 4 days
C) 8 days, +/- 5 days
D) 9 days, +/- 3 days

Question 32

Define and discuss the Order Management System.

Question 33

The time that elapses from when a company receives an order until it gets paid for delivering the order is called the:

A) product life cycle.
B) order to cash cycle.
C) order management process.
D) replenishment process.

Question 34

As the level of substitutability for a product increases, its stockout costs to the manufacturer:

A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question 35

Explain the impacts of order cycle time length and variability on both buyers and sellers.

Question 36

The SCOR model provides suggested metrics:

A) across multiple dimensions for each of the five Level One processes.
B) for segmenting customers.
C) for proving a base for ABC costing.
D) that allow marketing to evaluate channel selection.