Customers with a high cost to serve have ________.
A) large order quantity
B) few order changes
C) standard delivery requirements
D) frequent returns

Question

Quizplus · Accepted Answer

Customers with frequent returns will result in additional costs for handling returns and potential losses for damaged or unsellable products, therefore increasing the cost to serve. Customers with large order quantity or standard delivery requirements may not necessarily have a high cost to serve. Few order changes may actually decrease the cost to serve by reducing the need for additional handling and processing.

Customers with a High Cost to Serve Have ________