Question 1

A firm has found that it provides a 90 percent order fill rate (orders shipped complete),90 percent on-time delivery,90 percent of its orders arrive at customers' destinations in perfect condition,and 90 percent of the time all documentation is correct.These are all of the elements of a perfect order for this company's customers.What is the best estimate of its perfect order performance?

Accepted Answer

The best estimate of perfect order performance would be the percentage of times where all four elements (order fill rate, on-time delivery, perfect condition on arrival, and correct documentation) are met simultaneously. This can be calculated using the formula:

0.9 x 0.9 x 0.9 x 0.9 = 0.6561

Therefore, the best estimate of the firm's perfect order performance is 66 percent (rounded to the nearest whole number).

Question 2

Which measure of basic service will most likely show poorest performance for a firm?

Accepted Answer

Poor performance in perfect orders means that the firm is delivering incorrect, damaged or incomplete products to customers, resulting in poor customer experience, increased returns and decreased profitability. The other three measures, unit fill rate, order fill rate and line fill rate, are important indicators of a firm's efficiency in meeting customer demand and managing inventory, but poor performance in perfect orders can significantly undermine overall service quality.

Question 3

If a company has some customers who express that they are satisfied with the company's performance,the company can count on the fact that:

Accepted Answer

D

Question 4

Zanda Company has told a supplier that it is difficult to contact people in the supplier's company to learn the status of its orders and when they might arrive.Zanda is explaining which type of expectation it has of this supplier?

Accepted Answer

Zanda Company's expectation relates to the supplier's accessibility and ability to be easily contacted for updates on orders.

Question 5

A company surveyed both its customers and its senior management about customer expectations.Senior management's perceptions of customer expectations did not match customers' actual expectations.This is an example of:

Accepted Answer

A knowledge gap occurs when there is a difference between what the company believes customers expect and what customers actually expect.

Question 6

Customer relationship management attempts to:

Accepted Answer

Customer relationship management is focused on developing strategically appropriate relationships with customers. While meeting customer expectations and using technology can be important components of CRM, the ultimate goal is to build strong and profitable relationships with customers that align with the broader business strategy.

Question 7

A firm has found that it provides a 90 percent order fill rate (orders shipped complete),90 percent on-time delivery,90 percent of its orders arrive at customers' destinations in perfect condition,and 90 percent of the time all documentation is correct.These are all of the elements of a perfect order for this company's customers.If the firm improves its performance in on-time delivery to 98 percent,what is its new perfect order performance?

Accepted Answer

The new perfect order performance is calculated by multiplying the percentages of each element together: 0.9 (order fill rate) * 0.98 (on-time delivery) * 0.9 (condition) * 0.9 (documentation) = 0.71382, or 71.4% when rounded.

Question 8

Which customer management approach requires a comprehensive supply chain perspective on the part of operations executives?

Accepted Answer

The customer success approach focuses on ensuring that customers achieve their desired outcomes through the use of the company's products or services. This requires a comprehensive understanding of the entire supply chain in order to ensure that the product or service meets the customer's needs, and that there are no disruptions or delays in the delivery process. Operations executives play a crucial role in ensuring that the supply chain is efficient and effective, and that customer success is prioritized throughout the organization.

Question 9

Order-to-delivery lead time generally would be longest for which type of product?

Accepted Answer

Products that are engineered to order require a longer lead time compared to other categories because they are customized according to customer requirements and specifications. The manufacturing process can take a significant amount of time, including design and planning, sourcing materials, and production.

Question 10

Refer to the following information.What is the unit fill rate?

Accepted Answer

The answer of Refer to the following information.What is the...

Question 11

Senior management thought customers expected a rate of at least 96 percent for on-time delivery.However,senior management established a standard of 94 percent.The difference is the:

Accepted Answer

The difference between customers' expected rate of at least 96 percent and the established standard of 94 percent is the standards gap.

Question 12

With respect to lead-time performance,most customers would prefer which of the following from a supplier?

Accepted Answer

Consistency in lead-time performance is often more important to customers than shorter lead times with variability. A consistent three-day lead time allows customers to plan more effectively and reduces uncertainty in their supply chain.

Question 13

Alpha Company has a performance standard of 97 percent fill rate.Last month it achieved a 94 percent fill rate.This is an example of:

Accepted Answer

A performance gap occurs when the actual performance of a company falls below its expected performance or standard. In this case, the company's actual fill rate of 94 percent falls below its expected fill rate of 97 percent, indicating a performance gap. A knowledge gap occurs when an individual or company lacks the necessary knowledge or skills to perform a task, a standards gap occurs when there is a discrepancy between the company's standards and those of the industry, and a perception gap occurs when there is a difference between the customer's perception of the company's performance and the actual performance. None of these scenarios apply to the given situation.

Question 14

Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered.In fact,the customer received 95 percent of the items.This is an example of which "gap" in the customer satisfaction model?

Accepted Answer

The situation described is an example of a "Communications gap," which occurs when there is a difference between what a company promises about the product or service and what is actually delivered. In this case, Jones Company promised a 98 percent fulfillment rate but delivered only 95 percent.

Question 15

Refer to the following information.What is the order fill rate?

Accepted Answer

The answer of Refer to the following information.What is the...

Question 16

From an operations perspective,companies should strive to:

Accepted Answer

Different customers may have different needs and preferences in terms of how they want to interact and engage with a company. Some may prefer high-touch, personalized service while others may prioritize speed and convenience. By recognizing these differences and adapting customer management strategies accordingly, companies can better meet the needs and expectations of their diverse customer base. The other options (A, C, and D) are not necessarily always true or recommended from an operations perspective. Providing customer success to all customers may not be feasible or cost-effective, not all customers may desire close relationships, and it may sometimes be necessary or appropriate to refuse to do business with certain customers (e.g. if they are consistently unprofitable or unethical).

Question 17

The difference between a "customer success" focus and a "customer satisfaction" focus is that:

Accepted Answer

The answer of The difference between a "customer success" focus...

Question 18

Refer to the following information.What is the line fill rate?

Accepted Answer

The answer of Refer to the following information.What is the...

Question 19

Jones Company makes every effort to consistently meet the expectations of all of its customers.It is clear that Jones Company is focused on:

Accepted Answer

While customer service and customer happiness are important, the phrase "consistently meet the expectations of all of its customers" indicates a focus on customer satisfaction. Customer success may also be a goal, but it is not explicitly mentioned in the given sentence.

Question 20

Johnson Company has the following data about customer orders for the month of June: Orders Received: 5,000 orders
Total Units Ordered: 40,000 units
Total Units Delivered: 37,800
Total Orders Delivered Complete: 4,600
What was Johnson's unit fill rate?

Accepted Answer

To calculate the unit fill rate, we need to divide the total units delivered by the total units ordered and then multiply by 100.
Unit Fill Rate = (Total Units Delivered / Total Units Ordered) x 100
Unit Fill Rate = (37,800 / 40,000) x 100
Unit Fill Rate = 0.945 x 100
Unit Fill Rate = 94.5%
Therefore, the answer is B, 94.5 percent.

Quiz 7: Managing Inventories

Which measure of basic service will most likely show poorest performance for a firm?

If a company has some customers who express that they are satisfied with the company's performance,the company can count on the fact that:

Zanda Company has told a supplier that it is difficult to contact people in the supplier's company to learn the status of its orders and when they might arrive.Zanda is explaining which type of expectation it has of this supplier?

A company surveyed both its customers and its senior management about customer expectations.Senior management's perceptions of customer expectations did not match customers' actual expectations.This is an example of:

Customer relationship management attempts to:

Which customer management approach requires a comprehensive supply chain perspective on the part of operations executives?

Order-to-delivery lead time generally would be longest for which type of product?

Refer to the following information.What is the unit fill rate?

Senior management thought customers expected a rate of at least 96 percent for on-time delivery.However,senior management established a standard of 94 percent.The difference is the:

With respect to lead-time performance,most customers would prefer which of the following from a supplier?

Alpha Company has a performance standard of 97 percent fill rate.Last month it achieved a 94 percent fill rate.This is an example of:

Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered.In fact,the customer received 95 percent of the items.This is an example of which "gap" in the customer satisfaction model?

Refer to the following information.What is the order fill rate?

From an operations perspective,companies should strive to:

The difference between a "customer success" focus and a "customer satisfaction" focus is that:

Refer to the following information.What is the line fill rate?

Jones Company makes every effort to consistently meet the expectations of all of its customers.It is clear that Jones Company is focused on:

Johnson Company has the following data about customer orders for the month of June: Orders Received: 5,000 orders Total Units Ordered: 40,000 units Total Units Delivered: 37,800 Total Orders Delivered Complete: 4,600 What was Johnson's unit fill rate?