TRA CH.8

“Order to cash” is the same as
“order cycle”
Order management system represents the principal means by which
BUYERS AND SELLERS COMMUNICATE INFORMATION RELATING TO INDIVIDUAL ORDERS OF PRODUCT
Customer service is anything that touches the customer
True
As the level of sustainability for a product increases, its stockout costs to the manufacturer:
Increase
The term “replenishment cycle” refers to
the acquisition of additional inventory
What are the steps in the CRM process?
1. Segment customer base
2. Identify service/package
3. Measure service/package
4. Improve service/package
Customer relationship management (CRM) is a new concept only recently receiving attention
False
Reverse Inventory and Determine Delivery Date has traditionally been referred to as
Order processing
Traditional customer profitability analysis would start with ___ less returns and allowances (net sales) and subtract the cost of good sold.
Gross sales
A stockout always results in a back order
False
From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.
True
A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.
True
ABC analysis uses a single criterion to classify SKUs from MOST important TO LEAST important.
True
The traditional role of a customer service at interface between marketing and logistics manifests itself through the ____ dimension of the marketing mix.
Place
Activity Based Costing (ABC) can be combined with customer segmentation
True
There are two parts to the order management process. The first is ___ and the second is ___.
1. Influencing how the customer orders
2. Managing the order after it is received
Those customers who are in the “Danger Zone” segment are
the least profitable
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.
True
Activity Based Costing works well in warehouse-type environments but does not work for customer service applications
False
Activity Based Costing allocates costs to activities based on a fixed predetermined measure (e.g. cases)
False
There are TEN principal activities to the OTC Model
False
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing
True
The time that elapses from when a company receives an order until it gets paid for delivering the order is called the:
Order to Cash Cycle