Deck 7: Demand Management, Order Management

Question 1

____ refers to the management of various activities associated with the order cycle.
a. logistics
b. order processing
c. demand management
d. order management

Answer 1

order management

Question 2

In general, there are ____ possible ways to transmit orders.
a. three
b. four
c. five
d. six

Answer 2

five

Question 3

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
e. all of the above are basic types of forecasting models

Answer 3

exponential smoothing

Question 4

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 5

Classifying orders according to pre-established guidelines so that a company can prioritize how orders are to be filled refers to ____.
a. ABC analysis
b. order management
c. order processing
d. order triage

Question 6

Which of the following is true?
a. computer software for demand forecasting dates back over 40 years
b. one challenge to collaborative planning, forecasting, and replenishment is getting supply chain partners to share data
c. the Excel software package generates forecasts that have very little error
d. SAP is the most widely used software package for demand forecasting
e. all of the above are true

Question 7

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 8

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

Question 9

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 10

Which of the following is not a possible method of order transmittal?
a. in-person
b. mail
c. fax
d. electronic
e. all of the above are methods of order transmittal

Question 11

Which of the following is false?
a. some organizations have expanded the order management concept to include the length of time it takes an organization to receive payment for an order
b. the order cycle should be analyzed in terms of total cycle time and cycle time variability
c. order management has been profoundly impacted by advances in information systems
d. the various activities associated with an order cycle are not uniformly agreed upon
e. all of the above are true

Question 12

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 13

____ 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 14

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 15

Order transmittal is ____.
a. the same thing as an order cycle
b. the series of events that occur between the time a customer places an order and the time the seller receives the order
c. the series of events that occur between the time a customer perceives the need for something and the time the seller receives the order
d. the series of events between the time a customer places an order and the time the order cycle begins

Question 16

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 than earlier systems
c. more powerful than earlier systems
d. less costly than earlier systems
e. all of the above are characteristics of voice-based order picking systems

Question 17

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 18

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 19

Which of the following is not a characteristic of advances in order pick technology?
a. fewer picking errors
b. higher pick rates
c. reduced employee turnover
d. fewer employee accidents
e. all of the above are characteristics

Question 20

Surveys and analog techniques are examples of ____ forecasting.
a. cause and effect
b. time series
c. exponential smoothing
d. judgmental

Question 21

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. channels that do business in multiple countries
d. channels that combine horizontal and vertical marketing systems

Question 22

The final phase of the order cycle is called order ____.
a. picking and assembly
b. delivery
c. receiving
d. replenishment

Question 23

An unhappy customer will tell ____ other people about her/his unhappiness.
a. seven
b. nine
c. twelve
d. fifteen

Question 24

Which of the following statements is false?
a. goals tend to be broad, generalized statements regarding the overall results that the firm is trying to achieve
a. objectives are more specific than goals
c. a central element to the establishment of customer service goals and objectives is determining the customer's viewpoint
d. goals should be specific, measurable, achievable, and cost effective
e. all of the above statements are true

Question 25

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 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

____ 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 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

Question 32

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 33

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

Question 34

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 35

Which of the following is not a dimension of customer service?
a. time
b. convenience
c. dependability
d. communication
e. all of the above are dimensions

Question 36

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 37

____ 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 38

Which statement about measuring customer service is true?
a. firms should choose those aspects of customer service that are easiest to measure
b. firms should choose those aspects of customer service that they think are most important
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
e. all of the above are false

Question 39

Which of the following statements is false?
a. good or excellent service recovery can actually result in increased customer loyalty
b. approximately 40% of customers who experience a problem with purchases of less than $5 will not do business with that company again
c. one service recovery guideline involves fair treatment for customers
d. service recovery refers to a process for returning a customer to a state of satisfaction after a service or product has failed to live up to expectations
e. all of the above are true

Question 40

What component of customer service focuses on the ease of doing business with a seller?
a. convenience
b. dependability
c. time
d. communication

Question 41

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

Question 42

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

Question 43

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 44

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

Question 45

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

Question 46

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

Question 47

To date, most implementations of collaborative planning, forecasting, and replenishment (CPFR) have resulted in increased sales revenues and increased safety stock.

Question 48

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 49

Order retrieval is the final phase of the order cycle.

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

In general terms, order management refers to how a firm handles incoming orders.

Question 55

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

Question 56

Unhappy customers tell six people about their unhappiness.

Question 57

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

Question 58

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

Question 59

There are four possible ways to transmit orders.

Question 60

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

Question 61

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

Question 62

In the case is the statement, "The factory distributors in these few cities indicated that they, not Handy Andy, Inc., stood behind the 1-year warranty." Is this a problem for Handy Andy? Why or why not?

Question 63

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

Question 64

Benchmarking should only involve numerical comparisons of relevant metrics.

Question 65

Goals are the means by which objectives are achieved.

Question 66

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

Question 67

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

Question 68

It appears that the factory distributors are exploiting the smaller dealers. Yet from what we can tell, Handy Andy in St. Louis has heard no complaints from the smaller dealers. Why would they not complain?

Question 69

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

Question 70

Satisfactory service recovery tends to increase a customer's willingness to recommend the offending organization; unsatisfactory service recovery magnifies the initial failure.

Question 71

What should Handy Andy's marketing Vice President do? Why?

Question 72

Is this a customer service problem? Why or why not?

Question 73

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

Question 74

Bixby, Booher, and Ortega recognize that Handy Andy needs a better way to learn about the buyer's installation experience. One alternative is to add an open-ended question, dealing with the installation experience, to the warranty activation form. Another alternative is to e-mail a brief survey about the installation experience within three to five days of receiving a warranty activation form. Which of these should Handy Andy choose? Why?

Question 75

About 25% of customers who experience a problem with purchases of less that $5 will not do business with that company again.

Question 76

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

Question 77

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

Question 78

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 79

Objectives should be specific, measurable, achievable, and cost effective.

Question 80

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