Deck 7: Demand Management,order Management

Question 1

Order transmittal is:

A)the same thing as an order cycle
B)the series of events that occur between the time a customer places an order and the time the seller receives the order
C)the series of events that occur between the time the customer perceives the need for something and the time the seller receives the order
D)the series of events between the time a customer places an order and the time the order cycle begins

Answer 1

B

Question 2

Which of the following is true?

A)computer software for demand forecasting dates back over 30 years
B)one challenge to collaborative planning,forecasting,and replenishment is getting supply chain partners to share data
C)the Excel software package tends to generate forecasts that generate very little error
D)SAP is the most widely used software package for demand forecasting
E)All are true

Answer 2

B

Question 3

The text suggests that ____ often represents the best opportunity to improve the effectiveness and efficiency of an order cycle.

A)order transmittal
B)order delivery
C)order processing
D)order picking and assembly

Answer 3

D

Question 4

An underlying assumption of ____ forecasting is that future demand is dependent on past demand.

A)trial and error
B)time series
C)judgmental
D)cause and effect

Question 5

The order cycle is composed of each of the following except:

A)order picking and assembly
B)order delivery
C)order retrieval
D)order transmittal

Question 6

Classifying orders according to pre-established guidelines so that a company can prioritize how orders are to be filled refers to ____.

A)order management
B)order processing
C)order triage
D)ABC analysis

Question 7

The order cycle is:

A)the time that it takes for a check to clear
B)the time that it takes from when a customer places an order until the selling firm receives the order
C)also called the replenishment cycle
D)also called the vendor cycle

Question 8

Which of the following is not a possible method of order transmittal?

A)in-person
B)mail
C)fax
D)electronic
E)all are methods of order transmittal

Question 9

____ refers to the time from when the seller receives an order until an appropriate location is authorized to fill the order.

A)Order processing
B)Order cycle
C)Order management
D)Order transmittal

Question 10

____ refers to the management of various activities associated with the order cycle.

A)Logistics
B)Order processing
C)Demand management
D)Order management

Question 11

The creation across the supply chain and its markets of a coordinated flow of demand is the definition of:

A)order cycle
B)order management
C)demand management
D)supply chain management

Question 12

What forecasting technique assumes that one or more factors are related to demand and that this relationship can be used to estimate future demand?

A)Exponential smoothing
B)Judgmental
C)Cause and effect
D)Time series

Question 13

Ordering by ____ can be fast and convenient,but order errors are generally not detected until the order is delivered.

A)telephone
B)mail
C)fax
D)electronic

Question 14

Order processing typically involves each of the following activities except:

A)Checking the buyer's ability to purchase
B)entering the order into the system
C)determining inventory location
D)crediting the salesperson with the sale
E)all are activities

Question 15

Which of the following is false?

A)Some organizations have expanded the order management concept to include the length of time it takes an organization to receive payment for an order
B)the order cycle should be analyzed in terms of total cycle time and cycle time variability
C)order management has been profoundly impacted by advances in information systems
D)the various activities associated with an order cycle are not uniformly agreed upon
E)all are true

Question 16

Order picking and assembly is:

A)the most important component of the order cycle
B)the way a customer decides what he needs to purchase
C)the component that follows order processing
D)the most computerized part of the order cycle

Question 17

In general,there are ____ possible ways to transmit orders.

A)six
B)five
C)four
D)three

Question 18

Which of the following is not a basic type of demand forecasting model?

A)exponential smoothing
B)cause and effect
C)judgmental
D)time series
E)all are basis types of forecasting models

Question 19

Which forecasting technique tends to be appropriate when there is little or no historical data?

A)exponential smoothing
B)judgmental
C)time series
D)cause and effect

Question 20

Surveys and analog techniques are examples of ____ forecasting.

A)cause and effect
B)time series
C)exponential smoothing
D)judgmental

Question 21

Demand management is important because effective and efficient supply chains have learned to match both supply and demand.

Question 22

What are multichannel marketing systems?

A)Channels that have multiple intermediaries between the producer and the consumer
B)Separate marketing channels that serve an individual customer
C)Channels that do business in multiple countries
D)Channels that combine horizontal and vertical marketing systems

Question 23

____ is the process of taking corrective action when measurements indicate that the goals and objectives of customer service are not being achieved.

A)Control
B)Managing
C)Leadership
D)Benchmarking

Question 24

The ability of logistics management to satisfy users in terms of time,dependability,communication,and convenience is the definition of:

A)customer satisfaction
B)the order cycle
C)perfect order
D)customer service

Question 25

Which of the following statements is false?

A)service recovery refers to a process for returning a customer to a state of satisfaction after a service or product has failed to live up to expectations
B)one service recovery guideline involves fair treatment for customers
C)approximately 40% of customers who experience a problem with purchases of less than $5 will not do business with that company again
D)good or excellent service recovery can actually result in increased customer loyalty
E)all of the statements are true

Question 26

Judgmental forecasting is appropriate when there is little or no historical data.

Question 27

Forecasting accuracy refers to the relationship between the actual and forecasted demand.

Question 28

____ refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers.

A)Customer lifetime value
B)Net present value
C)Customer profitability analysis
D)Activity-based costing

Question 29

Which of the following is not a dimension of customer service?

A)time
B)convenience
C)dependability
D)communication
E)all of the above are dimensions

Question 30

____ refers to a process that continuously identifies,understands,and adapts outstanding processes inside and outside an organization.

A)Continuous improvement
B)Benchmarking
C)Quality management
D)Environmental scanning

Question 31

The time span within which an order must arrive refers to ____.

A)transit time
B)delivery window
C)order delivery
D)transit time reliability

Question 32

In make-to-order situations,finished goods are produced after receiving a customer order.

Question 33

Which of the following statements is false?

A)goals tend to be broad,generalized statements regarding the overall results that the firm is trying to achieve
B)objectives are more specific than goals
C)a central element to the establishment of customer service goals and objectives is determining the customer's viewpoint
D)goals should be specific,measurable,achievable,and cost effective
E)all of the statements are true

Question 34

The final phase of the order cycle is called order ____________.

A)picking and assembly
B)delivery
C)receiving
D)replenishment

Question 35

Which of the following is not a characteristic of advances in order pick technology?

A)higher pick rates
B)reduced employee turnover
C)fewer employee accidents
D)fewer picking errors
E)all are characteristics

Question 36

Simple moving averages and weighted moving averages are examples of judgmental forecasting.

Question 37

What component of customer service focuses on the ease of doing business with a seller?

A)convenience
B)dependability
C)time
D)communication

Question 38

A commonly used rule of thumb is that it costs approximately ____ times as much to get a new customer as it does to keep an existing customer.

A)three
B)four
C)five
D)six

Question 39

The percentage of orders that can be completely and immediately filled from existing stock is the ____ rate.

A)order cycle
B)perfect order
C)order fill
D)optimal inventory

Question 40

Which of the following is not a characteristic of contemporary voice-based based order picking systems?

A)Less costly than earlier systems
B)Better voice quality than earlier systems
C)More powerful than earlier systems
D)Easily disrupted by other noises

Question 41

When compared to early voice-based order picking,contemporary voice-based systems are less costly,more powerful,and have similar voice quality.

Question 42

Consumers are demanding about the same levels of service today as in years past.

Question 43

Order processing often represents the best opportunity to improve the effectiveness and efficiency of the order cycle.

Question 44

There are four possible ways to transmit orders.

Question 45

Order retrieval is the final phase of the order cycle.

Question 46

Travel time accounts for a majority of an order picker's total pick time.

Question 47

A commonsense approach is to fill an order from the facility location that is closest to the customer,with the idea that this should generate lower transportation costs as well as a shorter order cycle time.

Question 48

One reason that customers are demanding higher levels of customer service is that reliable service allows a firm to maintain a lower level of inventory.

Question 49

The "order triage" function refers to correcting mistakes that may occur with order picking.

Question 50

The order cycle is usually the time from when a customer places an order to when the firm receives the order.

Question 51

Order information is checked for completeness and accuracy in the order processing component of the order cycle.

Question 52

It costs approximately five times as much to get a new customer as it does to keep an existing customer.

Question 53

In general terms,order management refers to how a firm handles incoming orders.

Question 54

Each possible method of order transmittal has advantages and disadvantages,and each performs differently with respect to the cost of ordering and the time to order.

Question 55

Dependability consists of consistent order cycles,safe delivery,and consistent delivery.

Question 56

Pick-to-light technology is an order picking technique that has grown in popularity in recent years.

Question 57

A key change to the order delivery aspect of the cycle is that more and more shippers are emphasizing both the elapsed transit time and transit time variability.

Question 58

The current maximum range for overnight delivery by trucks is approximately 500 miles.

Question 59

To date,most implementations of collaborative planning,forecasting,and replenishment

Question 60

Order picking and assembly follows the order processing component of the order cycle.

Question 61

Customer profitability analysis refers to the allocation of revenues and costs to customer segments,or individual customers to calculate the profitability of the segments or customers.

Question 62

Is this a customer service problem? Why or why not?

Question 63

Today's customer likes to have multiple purchasing options at her/his disposal,and organizations have responded by developing hybrid marketing channels,that is,separate marketing channels to serve an individual customer.

Question 64

Logistics channels handle the physical flow of goods or service.Is the problem discussed in Handy Andy's logistics channel? Why or why not?

Question 65

Marketing channels are the arrangement of intermediaries

Question 66

Order fill rate is the percentage of orders that can be completely and immediately filled from existing stock.

Question 67

Redesign the warranty postcard,staying within the same dimensions,and include questions or statements that will make it easier for Handy Andy headquarters to detect whether installation practices of the type discussed in this case occur.

Question 68

It appears that the factory distributors are exploiting the smaller dealers.Yet from what we can tell,Handy Andy in St.Louis has heard no complaints from the smaller dealers.Why would they not complain?

Question 69

Organizations should utilize a limited number of meaningful and relevant metrics and should resist the tendency to "measure everything that moves."

Question 70

Objectives should be specific,measurable,achievable,and cost effective.

Question 71

The nature of the product can affect the level of customer service that should be offered.

Question 72

Text messaging and the Internet have lessened the need for telephone interaction and face-to-face contact between seller and customer.

Question 73

Companies today will not accept slower order cycles in exchange for higher order cycle consistency.

Question 74

The convenience component of customer service focuses on the ease of doing business with a seller.

Question 75

About 25% of customers who experience a problem with purchases of less than $5 will not do business with that company again.

Question 76

Goals are the means by which objectives are achieved.

Question 77

What should Handy Andy's marketing Vice President do? Why?

Question 78

Satisfactory service recovery tends to increase a customer's willingness to recommend the offending organization; unsatisfactory service recovery magnifies the initial failure.

Question 79

Leadership is the process of taking corrective action when measurements indicate that the goals and objectives of customer service are not being achieved.

Question 80

One suggestion for determining what customer service factors to measure is for firms to choose those aspects of customer service that they believe are most important.