Deck 7: Demand Management, order Management

Question 1

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

A)order fill rate
B)order management
C)order processing
D)order triage

Answer 1

order triage

Question 2

___________ refers to finished goods that are produced prior to receiving a customer order.

A)Make-to-stock
B)Supply management
C)Make-to-order
D)Speculation

Answer 2

Make-to-stock

Question 3

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

Answer 3

judgmental

Question 4

___________ 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 5

Order transmittal is ___________.

A)the series of events that occurs from the time a customer places an order and the time the customer receives the order
B)the series of events that occurs between the time a customer places an order and the time the seller receives the order
C)the series of events that occurs between the time a customer perceives the need for a product and the time the seller receives the order
D)the series of events that occurs between the time a customer places an order and the time the order cycle begins

Question 6

___________ and electronic ordering are order transmittal techniques that have emerged over the last 30 years.

A)In-person
B)Mail
C)Fax
D)Telephone

Question 7

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

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

Question 8

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

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

Question 9

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

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

Question 10

Which 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 11

Order picking and assembly is ___________.

A)the final stage of the order cycle
B)the most important component of the order cycle
C)the order cycle component that follows order processing
D)the order cycle component that follows order transmittal

Question 12

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 13

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 14

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

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

Question 15

___________ refers to finished goods that are produced after receiving a customer order.

A)Make-to-stock
B)Supply management
C)Make-to-order
D)Postponement

Question 16

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 17

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

Question 18

What is the second phase of the order cycle?

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

Question 19

___________ suggests that supply chain partners will be working from a collectively agreed-to single demand forecast number as opposed to each member working off its own demand forecast projection.

A)Supply chain orientation
B)Collaborative planning,forecasting,and replenishment CPFR)concept
C)Order management
D)Supply chain analytics

Question 20

Surveys and analog techniques are examples of ___________ forecasting.

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

Question 21

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

Question 22

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

Question 23

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

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

Question 24

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

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

Question 25

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

Question 26

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

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

Question 27

Which statement about measuring customer service is true?

A)Firms should choose those aspects of customer service that are easiest to measure.
B)Order cycle time is the most commonly used customer service measure.
C)Firms should use as many customer service measures as they can.
D)It is possible for organizations to use only one customer service metric.

Question 28

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

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

Question 29

An unhappy customer will tell ___________ other people about her/his unhappiness.

A)seven
B)nine
C)twelve
D)fifteen

Question 30

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

A)easily disrupted by other noises
B)better voice quality
C)more powerful
D)less costly

Question 31

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

Question 32

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 33

Which of the following is not a benefit of voice-based order picking?

A)fewer picking errors
B)improved productivity
C)minimal training time to learn the technology
D)fewer employee accidents

Question 34

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

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

Question 35

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

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

Question 36

Objectives should be SMART-that is,___________,measurable,achievable,realistic,and timely.

A)specific
B)strategic
C)static
D)striving

Question 37

The order cycle is an excellent example of the ___________ dimension of customer service.

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

Question 38

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

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

Question 39

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

Question 40

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)the same thing as horizontal marketing systems
D)channels that combine horizontal and vertical marketing systems

Question 41

In general terms,order management refers to management of the various activities associated with the order cycle.

Question 42

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

Question 43

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 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

There are four possible ways to transmit orders.

Question 49

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

Question 50

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

Question 51

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

Question 52

The increased use of vendor quality-control programs necessitates higher levels of customer service.

Question 53

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

Question 54

Customer service can be defined as the ability of logistics management to satisfy users in terms of quality,dependability,communication,and convenience.

Question 55

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

Question 56

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

Question 57

Order retrieval is the final phase of the order cycle.

Question 58

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

Question 59

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

Question 60

Demand chain management is where supply chain partners share planning and forecasting data to better match up supply and demand.

Question 61

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 62

The customer service metrics that are chosen should be relevant and important from the customer's perspective.

Question 63

Goals are the means by which objectives are achieved.

Question 64

Customer profitability analysis explicitly recognizes that all customers are not the same and that some customers are more valuable than others to an organization.

Question 65

A product just being introduced needs a different level of service support than one that is in a mature or declining market stage.

Question 66

Customer profitability analysis is grounded in traditional accounting cost allocation methods.

Question 67

It is possible for organizations to use only one customer service metric to measure customer service.

Question 68

Benchmarking should only involve numerical comparisons of relevant metrics.

Question 69

In the service recovery paradox,a customer holds the responsible company in higher regard after the service than if a service failure had not occurred in the first place.

Question 70

Objectives should be specific,measurable,achievable,realistic,and timely.

Question 71

Poor customer experiences cost U.S.business in excess of $75 billion per year.

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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