Deck 8: Order Management and Customer Service

Question 1

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

Answer 1

True

Question 2

Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model.

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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

Question 5

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 6

There are ten principal activities to the OTC model.

Question 7

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 8

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

Question 9

The identification of the product/service package for each customer segment is one of the easier activities in the CRM process.

Question 10

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

Question 11

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

Question 12

A stockout always results in a back order.

Question 13

Most organizations employ all six definitions of customer service in their order management process.

Question 14

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

Question 15

For the best service, all products should be available at all levels regardless of cost.

Question 16

Dependability is not as important to a buyer as is absolute length of lead time.

Question 17

There are five logistics performance metrics from the buyer's point of view.

Question 18

There are four types of communications that exist between a buyer and a seller.

Question 19

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

Question 20

Customer service is anything that touches the customer.

Question 21

Discuss how the Internet has affected how the OTC cycle.

Question 22

Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to

A) increase the velocity of cash back to the selling organization.
B) attract new customers.
C) develop "Clicks" and "Bricks" firms.
D) manage inventory more effectively.

Question 23

Define and discuss the Marketing/Logistics interface.

Question 24

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

Question 25

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

Question 26

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 27

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 28

Define and discuss the Order Management System.

Question 29

There are ____different perspectives on customer service. Fill in the blank as to how many there are and pick one to discuss in detail.

Question 30

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 31

Customer relationship management is the art and science of

A) demand management.
B) positioning customers to improve the profitability of the organization.
C) management discipline.
D) customer profitability.

Question 32

There are 13 elements in the Process D1: Deliver Stocked Product in the Supply Chain Council's SCOR Model. Name any four, and discuss them in detail.

Question 33

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 34

Which is NOT part of dependability?

A) cycle time
B) safe delivery
C) correct orders
D) consistent pricing

Question 35

Discuss the four basic steps in the implementation of the CRM process in a business-to- business environment.

Question 36

While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on

A) customer segmentation.
B) the use of the ABC process.
C) the use of the SCOR process.
D) variability or consistency of this process.

Question 37

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 38

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.

Question 39

Customer service can be defined as

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

Question 40

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 41

Customer service can be viewed as having four distinct dimensions from the perspective of logistics. Name all four, then pick two and discuss.

Question 42

When a seller is unable to satisfy demand with available inventory (a stockout), one of four possible events might occur. Name all four, and pick two to discuss in detail.