Deck 7: Managing Inventories

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?

A)90 percent
B)60 percent
C)0 percent
D)66 percent

Answer 1

66 percent

Question 2

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

A)Unit fill rate
B)Order fill rate
C)Line fill rate
D)Perfect orders

Answer 2

Perfect orders

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:

A)Those customers are happy.
B)Those customers will continue to buy and be loyal.
C)The company meets requirements of those customers.
D)None of these selections.

Answer 3

None of these selections.

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?

A)Reliability
B)Courtesy
C)Credibility
D)Access

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:

A)A knowledge gap.
B)A standards gap.
C)A performance gap.
D)A perception gap.

Question 6

Customer relationship management attempts to:

A)Ensure the development of customer success for customers.
B)Ensure the development of strategically appropriate relationships with customers.
C)Meet the expectations of customers.
D)Use technology to replace human interaction with customers.

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?

A)88 percent
B)98 percent
C)0 percent
D)80 percent
E)71.4 percent

Question 8

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

A)Customer success
B)Customer satisfaction
C)Customer service
D)Customer happiness

Question 9

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

A)One that is engineered to order
B)One that is assembled to order
C)One that is made to stock
D)One that is made to order

Question 10

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

A)95 percent
B)98 percent
C)92 percent
D)99 percent

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:

A)Satisfaction gap.
B)Performance gap.
C)Standards gap.
D)Knowledge gap.

Question 12

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

A)A consistent three-day lead time.
B)A lead time that averages three days with a range of one to four days.
C)A lead time that averages two days with a range of one to four days.
D)All of these are equally preferable.

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:

A)A knowledge gap.
B)A standards gap.
C)A performance gap.
D)A perception gap.

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?

A)Performance gap
B)Knowledge gap
C)Standards gap
D)Communications gap

Question 15

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

A)98 percent
B)92 percent
C)91 percent
D)95 percent

Question 16

From an operations perspective,companies should strive to:

A)Provide customer success to all customers.
B)Realize different customer management approaches may be appropriate for different customers.
C)Realize that all customers desire close customer success types of relationships.
D)Never refuse to do business with a customer.

Question 17

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

A)Customer satisfaction is more difficult to achieve.
B)Customer success deals with expectations of customers,while customer satisfaction deals with their requirements.
C)Customer satisfaction deals with expectations,while customer success deals with requirements.
D)There really isn't any difference.

Question 18

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

A)95.80 percent
B)93.33 percent
C)96.30 percent
D)97.58 percent

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:

A)Customer service.
B)Customer satisfaction.
C)Customer happiness.
D)Customer success.

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?

A)92 percent
B)94.5 percent
C)12.5 percent
D)91 percent

Question 21

An example of a major shift in customer expectations driven by the actions of a leading competitor is:

A)Amazon effect.
B)Google gambit.
C)Omni-channel.
D)Customer relationship management.

Question 22

Which of the following statements most clearly expresses a company's commitment to customer success?

A)"We attempt to meet or exceed the expectations of all of our customers."
B)"We attempt to meet our standards of providing perfect order performance to all of our customers."
C)"We attempt to meet the requirements of our customers."
D)All of these are clear expressions of commitment to customer success.

Question 23

Suppose your job is to reduce the number of times production is halted because of a shortage of raw materials.Which of the following items would be of most help to you?

A)Better demand forecasts
B)Resource utilization rate
C)Line fill rate
D)Advance shipment notices

Question 24

Lead-time performance is an element of:

A)Minimal importance to most industrial customers.
B)Basic service.
C)Customer satisfaction.
D)Customer success.

Question 25

Customers who are both low revenue generators and low profit generators for a firm should be:

A)Terminated as customers.
B)Provided with a minimum level of customer service.
C)Reviewed for possible termination or continuation.
D)Treated with customer success relationships to improve revenue and profit.

Question 26

Given the following information for the last two months,which fill rate measure showed the greatest improvement?

A)Unit fill rate
B)Line fill rate
C)Order fill rate
D)None of the fill rates improved

Question 27

Using a service like Uber to deliver orders is broadly known as:

A)Uberizing
B)Amazon Prime
C)Third-party distribution
D)Crowdsourcing

Question 28

Commitment to "customer success" is likely the best approach for a firm to use with:

A)All of its customers.
B)Customers who represent a small source of revenue for the firm.
C)Customers who have high expectations.
D)None of these selections.

Question 29

The use of technology to collect and analyze data concerning customers' buying behavior is an important aspect of:

A)Basic customer service.
B)Customer satisfaction.
C)Customer relationship management.
D)Customer success.

Question 30

Anthony Company has analyzed its customer base and realizes that it has a few customers who provide both high revenue and high profitability.This suggests that the appropriate commitment to those customers would be:

A)Customer success.
B)Review reason for doing business.
C)Good basic customer service.
D)Customer satisfaction.

Question 31

A service strategy that allows customers many different options for ordering and fulfillment of purchases is known as:

A)Customer success.
B)Omni-channel.
C)Flexible purchasing.
D)Customer convenience.

Question 32

If shorter lead times are also typically the most reliable,then which market orientation is likely to provide more reliable order fulfillment?

A)Engineer to order
B)Assemble to order
C)Make to order
D)Make to stock