CH 8 T/F

Customer service is anything that touches the customer.
T
Most organizations employ all six definitions of customer service in their order management process.
F
Customer relationship management is a new concept only recently receiving attention.
F
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.
T
The identification of the product/service package for each customer segment is one of the easier activities in the CRM process.
F
Activity-based costing works well in warehouse-type environments but does not work for customer service applications.
F
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.
T
“Order to cash” and “order cycle” are the same.
T
“Order to cash” and “replenishment cycle” are the same.
F
The buyer and seller look at order time from the same perspective.
F
Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model.
T
There are ten principal activities to the OTC model.
F
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.
F
A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.
T
Customer service is of equal importance to both logistics and marketing.
T
From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.
T
Dependability is not as important to a buyer as is absolute length of lead time.
F
There are four types of communications that exist between a buyer and a seller.
F
There are five logistics performance metrics from the buyer’s point of view.
T
A stockout always results in a back order.
F
For the best service, all products should be available at all levels regardless of cost.
F