Supply Chain Exam 2
Personal Insight Jury of Executive Opinion Delphi Method Sales Force Estimation Customer Survey
5 Qualitative Forecasting Models
Sales Force Automation
A core component of CRM systems used to document and measure sales team activities
1
A forecasting method has produced the following data over the past 5 months shown in Data Set E2. What is the mean absolute deviation (accurate to 2 decimals)?
e. I, II & III
Dependent demand and independent demand items differ in that I. for any product, all components are dependent-demand items II. the need for independent-demand items is forecast III. the need for dependent-demand items is calculated
Obsolete Inventory
Inventory items that is expired, damaged, or no longer able to be sold at full value
True
It is best to integrate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can help managers make more informed customer-focused decisions.
True
One important element for CRM is to segment customers on the basis of things like products purchased, sales history, demographic information, and desired product features.
True
One of the goals of an effective CPFR system is to minimize the negative impacts of the bullwhip effect on supply chains.
True
Relaxing the instantaneous replenishment assumption of the EOQ model results in the Economic Manufacturing Quantity model.
True
Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.
True
Some of the benefits of CPFR include strengthening partner relationships, providing an analysis of sales and order forecasts both upstream and downstream, and allowing collaboration on future requirements and planning.
True
The ABC inventory control system categorizes inventory items into three groups, A, B, and C. A items are given highest priority, while C items have the lowest priority. Prioritization may be based on annual dollar usage, shelf life, or sales volume.
True
The ABC inventory matrix is used to monitor whether the firm is stocking the correct type of inventory and to detect obsolete stock.
how many units should be ordered.
The EOQ model with quantity discounts attempts to determine
Reorder Point
The lowest inventory level at which a new order must be placed to avoid a stockout
Cycle Stock
The main Finished Goods Inventory that a company maintains to sell
Inventory Turnover
The number of times that an inventory "turns over," during the year
False
Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.
Annual purchase cost of goods
What inventory factor may be omitted from the basic EOQ derivation because it is a constant?
the opportunity cost of not ordering from a least cost supplier
Which of the following is not an example of an ordering cost for products purchased from a supplier?
Net Suite and Oracle
Which of the following organizations were featured as two of the main providers of CRM software applications?
All of these
Which of the following statements about consumer focused programs/initiatives is TRUE?
Bicycle tires used to assemble a bicycle
Which of the following would most likely be considered a dependent demand item?
Naïve method
Which one of the following is not a type of qualitative forecasting?
If an order quantity is larger than the EOQ, the annual holding cost exceeds the annual ordering cost.
Which one of the following statements regarding the economic order quantity is true?
True
While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.
Single-Period Inventory Model
a type of inventory system in which inventory is only ordered for a one-time stocking
Base Stock Level System
a type of inventory system that issues an order whenever a withdrawal is made from inventory
CRM
aligning the people, process, and technology of a company to be a customer-centric organization
Field Service
allows customers to interact directly with the company's service personnel
2D Bar Codes
are a graphical image that stores information both horizontally and vertically
Order Costs
are costs that are incurred each time an order is placed.
Carrying Costs
are costs that are incurred for holding inventory in storage
Manufacturing
assembly instructions encoded on RFID tag provide information to computer controlled assembly devices
Cause and Effect
assumes that one (or more) factors (independent variables) will impact future demand
Multiple Linear Regression
attempts to model the relationship between two or more independent variables and a dependent variable (demand) by fitting a linear equation to the observed data
ABC System
classifies inventory based on the degree of importance to the company
Forecast Bias
consistent deviation from the mean in one direction; either high or low
Holding/Carrying Costs
costs for physically holding inventory, maintaining the infrastructure needed to store the inventory, secure and insure it over time
Up-Selling
involves persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. It also involves selling the customer extra features or add-ons to the product they are already buying or considering
Dependent Demand
is demand for an item that is directly related to another item's demand, such as a component or material used in making a finished product
Safety Stock
is inventory that is above and beyond what is actually needed to meet anticipated demand
Call Centers
links an organization to its customers. It is a facility housing personnel who respond to customer queries, whether general, specific or technical support. It's entire focus is handling current or potential customer inquiries. There are many KPI's used to measure efficiency and effectiveness
Good Forecasting
more effective planning, which can lead to efficient processes, reduced inventories & costs, improved customer service and better financial performance
Church Reduction
process of customers changing their buying preferences because they find better or cheaper products and services elsewhere
Mean Absolute Percentage Error
provides a perspective of the true magnitude of the forecast error
Communication
sharing information through the use of electronic data interchange (EDI) or web-based systems on sales (POS) and inventory data.
Distribution Center
shipment leaving DC automatically updates ERP to trigger a replenishment order and notify customer for delivery tracking
Weighted Moving Average
similar to a simple moving average except that the time periods are weighted to address trend
Forecast Error
the difference between the actual quantity & the forecasted amount
Inventory
the goods and materials that are held in stock for sales, service, production and maintenance
Units
the number of units owned
Demand
the state of being wanted or sought for purchase or use
Quantitative Forecasting
which uses historical data to create mathematical models to develop baseline forecasts which is combined with other available mathematical information to determine future demand
raw materials used in production, work-in-process items (semi-produced but not complete), finished products to provide customer service, maintenance, repair, and operating supplies needed to run a business
4 main categories of inventory
Customer Lifetime Value
A prediction of the net profit attributed to the entire future relationship with a particular customer
Economic Order to Quantity Model
A quantitative decision model based on the trade-off between annual inventory carrying costs and annual order costs
Target Marketing
A segment of customers a company has decided to aim its marketing efforts
Relationship or Permission Marketing
An approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information. Customers self-select the type and time of communication they want
Jury of Executive Opinion
An experienced group of senior management executives knowledgeable about the market, competitors, and the business environment develop a forecast
Personalizing Customer Communications
Understanding customer behaviors and preferences, allows a firm to customize communications aimed at specific groups of customers and is likely to result in greater levels of sales
Fixed-Order Quantity System
An order for a pre-defined quantity for that item is used from order to order. When the inventory position drops to a predetermined reorder point, a predetermined fixed order quantity is placed The time between orders (i.e., order period) varies from order to order.
True
As customers navigate through a website CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.
True
As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.
Effectiveness
Average resolution time Staff productivity Customer satisfaction rating Industry ranking Cost as % revenue Revenue generated
Inventory alignment
Use of just in time, vendor managed inventory, and other inventory management methodologies simplifies inventory management in the supply chain
Simple Moving Average
Uses a calculated average of historical demand during a specified number of the most recent time periods to generate the forecast.
16500
Using Data Set E1, what would be the forecast for period 6 using a five period weighted moving average? The weights for each period are 0.05, 0.10, 0.20, 0.30, and 0.35 from the oldest period to the most recent period, respectively. (Choose the closest answer.)
16600
Using Data Set E1, what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000. Use a smoothing constant of α = 0.4 (Choose the closest answer.)
17250
Using Data Set E1, what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.)
44.4
Using the actual demand shown in the table below, what is the forecast for May (accurate to 1 decimal) using a 4-month weighted moving average and the weights 0.1, 0.2, 0.3, 0.4 (with the heaviest weight applied to the most recent period)?
Efficiency
Cost per contact / call Average wait time Abandon call % Average resolution time Staff productivity Self service vs. Agent supported
Raw Materials
Crude or processed material that can be converted by a manufacturing process into a new and useful product
Customer Survey
Customers are approached and asked to give their opinions about the particular product or service
True
Cycle counting counts the physical inventory to ensure that physical inventory matches against records.
Tracking Signal
Determines if the forecast is within acceptable control limits and provides a warning when there are significant unexpected departures from the forecast falls outside the pre-set control limits, there is a bias problem with the forecasting method and an evaluation of the way forecasts are generated is warranted
False
Electronic Product Code (EPC) is the only RFID standard adopted by the commercial sector and the U.S. Department of Defense.
Knowledge Management
Establish data repository that can be used by all areas of the company to improve sales and supply chain performance
True
Examples of forecasting accuracy measures are Mean Absolute Deviation, Mean Absolute Percentage Error, and Mean Square Error
is one-half of the economic order quantity
If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the model, the average amount of inventory on hand
decrease ..... increase
If usage is constant, as order size increases, annual order costs ____ but annual carrying costs ____.
False
If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average.
False
If you were calculating a forecast using an exponential smoothing model, a calculation using α = 0.2 would be putting a greater emphasis on recent data, while a calculation using α = 0.8 would be putting a greater emphasis on past data. Thus a lower α is more responsive to changes in demand in the most recent periods.
True
In the Delphi forecasting method, a group of internal and external experts are surveyed during several rounds in terms of future events and long-term forecasts of demand but the group members do not physically meet.
False
In the Economic Manufacturing Quantity model, average inventory is one-half of the economic manufacturing quantity.
False
In the Economic Manufacturing Quantity model, the annual consumption rate must be higher than the annual production rate.
demand during lead time
In the absence of demand and delivery lead time uncertainty, reorder point is the ____.
32
In the absence of demand and delivery lead time variation, if demand is eight per day and purchase lead time is four days, the reorder point is:
sum of demand during lead time and safety stock
In the presence of demand and delivery lead time uncertainty, reorder point is the ____.
d. I and III only
In the quantity discount model, the optimum order quantity that minimizes annual total costs may exist at: I. the economic order quantity II. the economic manufacturing quantity III. a price break point IV. the average inventory V. the reorder point
Pipeline Inventory
Inventory in Transit Inventory held/ owned by suppliers or by wholesalers, distributors, retailers, and customers
Fixed-Time Period System
Inventory is checked in fixed time periods against a target inventory level. If the inventory is less than target, a quantity necessary to bring inventory back up to the target level is ordered. The amount of inventory ordered will potentially vary from period to period based on the remaining inventory at each time interval checked
Bin System
Inventory system that uses bins to hold a quantity of the item being inventoried
False
Inventory turnover ratio shows how many times a firm turns over its inventory in an accounting period. Faster turnovers are generally viewed as negative because it indicates instability in the firm's inventory level.
False
It is best to segregate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can create confusion inside the organization.
Maintenance, Repair, and Operating (MRO)
Items used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations
Inventory Control tools
Linear Barcode 2D Barcode Radio Frequency Identification (RFID)
Trend Variations
Long term trend of the demand. Easily observed by plotting actual demand on a graph over time. Any expected impact to the long term trend (newer technology, change in population, etc.)
Simple Regression
Only one explanatory variable is used & is the same as the linear regression model. The difference is that the x variable is no longer time but an explanatory variable
False
Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.
False
Service parts sold to the repair shops are examples of dependent demand.
ASP
Since many companies do not have the knowledge, resources (money/people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n):
Actual demand for period t minus the forecasted demand for period t
Some measures of forecasting accuracy include mean absolute deviation, mean absolute percentage error, and mean squared error. The formula for each is dependent on the forecast error, which is calculated by using the equation:
True
Some of the important steps involved in implementation of a CPRF process model include developing a collaborative arrangement, creating a sales forecast, creating an order forecast, and generating those orders.
True
Some of the leading suppliers of CPFR solutions mentioned in the textbook are JDA Software Group, i2 Technologies, and Oracle.
True
Some of the ways customers evaluate the customer service capabilities of an organization are through their experiences with human response call centers, automated response call centers, consumer web sites, and field service employees.
Random Variations
Spikes in the data caused by random occurrences. These are generally very short-term and can be caused by unexpected and unpredictable events such as weather emergencies, natural or man made events or rare happening (e.g., Superstorm Sandy, 9/11, protest march, 250 year anniversary )
Radio Frequency Identification (RFID)
Successor to the barcode for tracking individual unit of goods
Synchronizing the supply chain
Supply chain partners coordinate planning and transportation management to minimize costs and inventory.
False
The (s, S) continuous review inventory system orders the same quantity Q when physical inventory reaches the reorder points.
True
The ABC inventory matrix shows an ABC inventory classification based on annual usage on the vertical axis and an ABC inventory classification based on physical inventory on the horizontal axis.
True
The EOQ, also known as the economic order quantity, is the optimal order size in terms of cost because it minimizes the annual total inventory cost. The EOQ is the lot size where inventory holding costs equal annual ordering costs.
False
The Institute of Supply Management (ISM) surveys more than 300 purchasing and supply executives in the United States using a questionnaire seeking information on "changes in production, new orders, new export orders, imports, employment, inventories, prices, lead-times, and the timeliness of supplier deliveries in their companies comparing the current month to the previous month." The ISM Report on Business focuses only on the manufacturing sector.
True
The continuous review inventory system is more expensive to monitor compared to the periodic review inventory system.
100
The cost of a widget is $5, and the carrying rate is 40%; cost of processing an order is $25, annual demand is for 400 widgets, and supply and usage patterns are stable. What is the economic order quantity (EOQ)?
50
The cost of a widget is $5, and the carrying rate is 40%; the cost of processing an order is $25, the annual demand is 400 widgets, and supply and usage patterns are stable. Assuming you are ordering at the lot size of 200 units per order (not the EOQ quantity). What is the annual ordering cost?
True
The difference between a simple regression forecast and a multiple regression forecast is that simple regression is used when there is only one explanatory (or independent) variable, while multiple regression is used when there are numerous explanatory variables.
120
The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods, and advertising budgets averaging $3,000 over the last 10 periods is:
1
The exponential smoothing forecast has the same value as the naïve forecast when α in the exponential smoothing model is equal to:
Naive Forecasting
The forecast for the next time period is equal to the actual result in the last time period sept and august both 25,500 units
Personal Insight
The forecast is based on the insight of the most experienced, knowledgeable, & / or senior person
False
The four broad categories of inventories are raw materials, work-in-process, subassemblies, and finished goods.
False
The modern day business environment must deal with a more homogenous consumer base, which has caused the evolution of a more "push" oriented environment where suppliers must focus on manufacturing high volumes of standardized goods.
False
The objective of CPFR is to optimize the supply chain by improving demand forecast accuracy, delivering the right product at the right time to the right location, reducing inventories across the supply chain, avoiding stock-outs, and improving customer service. As a result of the many benefits attributed to CPFR, this business practice has been widely adopted.
Cross-selling
The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:
True
The optimal order quantity for the quantity discount model may exist at a price breakpoint.
True
The periodic inventory review system reviews physical inventory at specific points in time.
Segmenting Customers
The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing
to minimize the sum of setup cost and holding cost
The primary purpose of the basic economic order quantity model is
Customer Defection
The process of analyzing the customers who have stopped buying to determine why
False
The total annual inventory cost is the sum of the annual purchase cost, the annual holding cost, the annual capacity cost, and the annual ordering cost.
False
The true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, not from the exchange of forecasting information
Absolute Inventory Value
The value of the inventory at its cost
Finished Goods
Those items on which all manufacturing operations, including final testing, have been completed. These products are available for sale and/or shipment to the customer
Strategic Stock Safety Stock Cycle Stock
Three levels of Internal Inventory
True
Through the use permission marketing programs, customers are allowed to select the type of communications companies can make with them. Actually, customers can even choose to be completed eliminated from both e-mail and traditional mailing lists.
Sales Activity Management
Tool offering sales reps a guided sequence of sales activities
Order/Setup Costs
direct costs associated with placing an order for inventory or setting up production machines
Direct Costs
directly traceable to unit produced
Event Based Marketing
form of marketing that identifies key events in the customer and business lifecycle
Postponement Strategy
generally suggests maintaining an amount of almost completed WIP inventory near the point of consumption to enable quick response to customer orders for customized products
Materials Management
goods automatically counted and logged as they enter the supply warehouse
Linear Trend Forecasting
imposing a best fit line across the demand data of an entire time series. Used as the basis for forecasting future values by extending the line past the existing data and out into the future while maintaining the slope of the line
Fixed Costs
independent of the unit volume produced
Running Sum of Forecast Errors
indicates bias in the forecasts or the tendency of a forecast to be consistently higher or lower than actual demand. It is simply the sum of the actual errors. The closer to zero the better
Negative RSFE
indicates that the forecasts were generally too high, overestimating demand
Positive RSFE
indicates that the forecasts were generally too low, underestimating the demand
Collaborative Planning, Forecasting, and Replenishment (CPFR)
is a business practice that combines the intelligence of multiple trading partners in the planning & fulfillment of customer demands by sharing their sales forecasts, manufacturing schedule, marketing plans, and delivery schedules to ensure a smooth flow of goods and services across the supply chain
Barcode Reader
is an electronic device that can read barcodes and transmit the data to a computer. These might be handheld cordless devices, corded devices that attach directly to a PC's USB port, or computers with integrated laser scanners
Demand Planning
is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services
Mean Squared Error
large forecast errors are heavily penalized, focuses on minimizing errors
Retail Store
no check out lines as scanners link RFID tagged goods in shopping cart with buyers credit card
Post-Transaction Elements
occur after the sale Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc
Transaction Elements
occur during the sale Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc
Cross Selling
occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase
Pre-Transaction Elements
precede the sale Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc
Collaborative Planning, Forecasting, and Replenishment (CPFR)
sharing of sales forecasts among firms rather than individual forecasting
Material in Various Stages of Completion
spanning from raw material that has been released for initial processing through fully processed material awaiting final inspection and acceptance as finished goods
Delphi Method
the input of each of the participants is collected separately by an independent facilitator to maintain expert independence. Multiple sessions are used with summary information provided to enable updated forecasts to be provided until a consensus is reached
Forecasting
the process of estimating future demand for products and services so that they can be available in appropriate quantities in time to meet the customer's requirements
Forecast
to predict a future condition or occurrence; calculate in advance; (n) a prediction as to something in the future*
Continuous Review System
verifying inventory levels after each movement), more costly but requires less safety stock
Cyclical Variations
wavelike movements that are longer than a year (business cycle). Economic swings (recession, expansion, bull or bear markets)
Actual value is higher than forecast
If a tracking signal is positive, which one of the following is true?
equal to the annual ordering cost.
If an item is ordered at its economic order quantity, the annual carrying cost should be:
Linear (1D) Bar Codes
"a series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers
Days/Weeks of Supply
(on-hand inventory) / (avg. daily / weekly usage)
Periodic Review System
(reviews physical inventory at specific points in time) is less costly and requires higher level of safety stock
Supplier lead times
According to textbook, the top three challenges for CPFR implementation include all of the following except:
Maintaining a rigid pricing system
According to the textbook, which of the following is NOT a way to closely match supply and demand?
ASP stands for application service provider
According to the textbook, which of the following statements is TRUE?
CRM stands for customer relationship management
According to the textbook, which of the following statements is TRUE?
Strategic Stock
Additional inventory beyond cycle and safety stock, generally used for a very specific purpose or future event maintained for a defined period of time
True
An RFID reader does not require direct line of sight to read the information stored in an RFID tag.
Bad Forecasting
Bad investments, inefficiencies, excess inventory or lost sales, corrective actions, poor financial performance
1.4
Based on the information in Data Set E2, what is the mean squared error (accurate to 2 decimals)?
True
Because integrated supply chains require good suppliers to act as good supply-chain customer partners, CRM programs should include first-tier customer training and education to ensure proper use of purchase products.
Inventory Turnover Ratio
COGS/Average Inventory
False
CRM Programs often fail because they tend to involve suppliers who have their own objectives which can differ from the host CRM company. CRM programs should insulated from first tier⎯suppliers who may widen the scope of the program to point where it could yield few if any results.
Customer defection analysis
CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called:
Predicting Customer Behavior
Collect and analyze customer buying history, preferences, and trend information which could then be used to predict customer buying behaviors going forward
increase production change/setup costs
Companies hold a supply of inventory for all of the following reasons EXCEPT:
Customer churn
Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as:
Bullwhip Effect
Forecast changes & their corresponding orders along the supply chain can become amplified and accumulate, causing the effect whereby excess safety stock is included at all levels of the supply chain from information gaps resulting in higher Supply Chain costs
Key Building Blocks of Supply Chain
Forecasting and Demand Planning
True
Future trends in CRM include coping with the delicate issue of privacy, outsourcing CRM programs to technical specialists, and adapting CRM programs for global use.
63.35
Given the following information, calculate the forecast (accurate to 2 decimals) for period three using exponential smoothing and α = 0.3.
Communication Synchronizing the supply chain Inventory alignment Collaborative Planning, Forecasting, and Replenishment (CPFR)
How can Bullwhip Effect be Alleviated?
Mean Absolute Deviation
Identifies how far off the forecast was in absolute terms
Lead Management
Prescribed tactics to convert prospects into customers
Buffer uncertainty in the marketplace & Decouple dependencies in the supply chain (safety stock)
Primary Function of Inventory
Total Cost
Purchase Cost + Order Cost + Carrying Cost
False
Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.
True
Radio Frequency Identification (RFID) is considered an eventual replacement of bar code because of its ability to store huge amount of information to differentiate specific unit of good.
True
Relaxing the constant price assumption of the classic EOQ model results in the Quantity Discount model.
Seasonal Variations
Repeating pattern of demand increases or decreases during specific time intervals Hourly (morning, afternoon, evening, overnight) Daily (weekdays, weekends, holidays) Weekly (beginning of month, end of month) Monthly (key activities, holidays) Seasonally (holiday, winter, summer, back to school) Used to validate and adjust the forecast to the expected change in demand based on the time interval
Sales Territory Management
Sales managers obtain information on each sales rep's activities
Sales Force Estimation
Utilizes the knowledge of the sales force. Sales people provide the forecast for their territory / customers. This is consolidated into a total forecast
Step 1: Collaboration Arrangement Step 2: Joint Business Plan Step 3: Sales Forecasting Step 4: Order Planning/Forecasting Step 5: Order Generation Step 6: Order Fulfillment Step 7: Exception Management Step 8: Performance Assessment
VICS'S CPFR Model with Retailer and Manufacturer tasks
Collaborative, planning, forecasting, and replenishment
What does the acronym CPFR represent?
Event-based marketing
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as:
True
When demand and lead time are constant, reorder point is the demand during lead time.
False
When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.
True
When web sites suggest other items for purchase based on already purchased items, this is an example of Cross-Selling.
All of these
Which of the following are required elements of an effective CRM initiative?
Segmenting customers
Which of the following are required elements of an effective CRM initiative?
raw material items that become part of the final product at a manufacturing firm
Which of the following cannot be considered as independent demand items?
Customer complaint resolution
Which of the following customer service elements can be classified as examples of post-transaction elements?
Customer service policies and the company's choice of organizational structure
Which of the following customer service elements can be classified as examples of pre-transaction elements?
Purchasing Managers Index
Which of the following indices provided by the Institute for Supply Management (ISM) is considered the most important by economists because it is a composite of five weighted, seasonally adjusted index's?
The production rate must be greater than the consumption rate.
Which of the following is NOT an assumption of the classic Economic Order Quantity (EOQ)?
It hides production and other problems.
Which of the following is a disadvantage of excessive inventory?
All of these
Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level?
Production and use can occur simultaneously.
Which of the following is not an assumption of the economic order quantity model?
False
While a well planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM and Toyota since their touches with the customer are few.
Maintenance, repair and operating supplies
____, such as lubricants for machine, are used in the production process, but do not become parts of the final products.
Qualitative Forecasting
based on opinion and intuition using the expertise of those making the forecast along with general available information such as Macro Economic data and trends Used when data is limited, unavailable, or not currently relevant
Time Series
based on the assumption that the future is an extension of the past. Historical data is used to predict future demand
Indirect Costs
cannot be traced directly to the unit produced
Independent Demand
demand for final products affected by trends, seasonal patterns, & general market conditions
Variable Costs
dependent on the unit volume produced vary with output level