BCOR 2206 Quiz 3 Ch(7, 9)

Ordering cost is which type of cost? A) Fixed B) Variable C) Overhead

A) Fixed

Which of the following would be considered part of Ordering Cost? (choose all that apply)** A) Minimum shipping charge B) Postage to mail the order to a supplier (who still lives in the early 20th century) C) Renting a truck to haul the order (and only this order, no other business is used for this truck's one time rental) D) Cost of the office building housing your employees.

A) Minimum shipping charge C) Renting a truck to haul the order (and only this order, no other business is used for this truck's one time rental) D) Cost of the office building housing your employees.

Safety stock is inventory held to guard against uncertainty A) True B) False

A) True

The Q-system of inventory submits inventory orders at random times. A) True B) False

A) True

4. With respect to lead-time performance, most customers would prefer which of the following from a supplier? A. A consistent three-day lead time B. A lead time that averages three days with a range of one to four days C. A lead time that averages two days with a range of one to four days D. All of these are equally preferable.

A. A consistent three-day lead time

A firm has established a standard of 96 percent for on-time delivery. Over the past month the firm determined it actually delivered 94 percent on-time. The difference is the: A. Standards gap. B. Performance gap. C. Satisfaction gap. D. Knowledge gap.

A. Standards gap.

Which two things drive the need for safety stock? (choose two)?** A) Demand variability B) Warehouse space C) Delays D) Manufacturing speed E) Customer choice

All?? Demand variability delays

Ordering cost only consists of the shipping cost from supplier to customer. A) True B) False

B) False

The time value of money, opportunity cost, is not part of the calculation of EOQ holding cost (T/F) A) True B) False

B) False

What is the great benefit of the Q-system? A) Complicated mathematical calculations B) Responsiveness C) Hiding inventory from customers D) Ordering at fixed times

B) Responsiveness

Holding cost is which type of cost? A) Fixed B) Variable C) Overhead

B) Variable

2. Johnson Company has the following data about customer orders for the month of June: Orders Received: 5,000 orders Total Units Ordered: 40,000 units Total Units Delivered: 37,800 Total Orders Delivered Complete: 4,600 What was Johnson's unit fill rate? A. 92 percent B. 94.5 percent C. 12.5 percent D. None of these

B. 94.5 percent

Customer relationship management attempts to: A. Ensure the development of customer success for customers. B. Ensure the development of strategically appropriate relationships with customers. C. Meet the expectations of customers. D. Use technology to replace human interaction with customers.

B. Ensure the development of strategically appropriate relationships with customers.

1. From an operations perspective, companies should strive to: A. Provide customer success to all customers. B. Realize different customer management approaches may be appropriate for different customers. C. Realize that all customers desire close customer success types of relationships. D. Never refuse to do business with a customer.

B. Realize different customer management approaches may be appropriate for different customers.

What is another name for the "Q-system" of inventory? A) Qualified Inventory Order System B) Controlled Inventory Ordering System C) Continuous Review Inventory System D) Quick Response Inventory System

C) Continuous Review Inventory System

The "right" amount of safety stock is often a function of Service Level. Service Level is: A) The probability of making the right product B) The probability of delay C) The probability of meeting demand during a delay D) The probability of delay causing more demand

C) The probability of meeting demand during a delay

Alpha Company has a performance standard of 97 percent fill rate. Last month it achieved a 94 percent fill rate. This is an example of: A. A knowledge gap. B. A standards gap. C. A performance gap. D. A perception gap.

C. A performance gap.

The difference between a "customer success" focus and a "customer satisfaction" focus is that: A. Customer satisfaction is more difficult to achieve. B. Customer success deals with expectations of customers, satisfaction deals with their requirements. C. Customer satisfaction deals with expectations, customer success deals with requirements. D. There really isn't any difference.

C. Customer satisfaction deals with expectations, customer success deals with requirements.

14. Customers who are both low revenue generators and low profit generators for a firm should be: A. Terminated as customers. B. Provided with a minimum level of customer service. C. Reviewed for possible termination or continuation. D. Treated with customer success relationships to improve revenue and profit.

C. Reviewed for possible termination or continuation.

A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destination in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. What is the best estimate of its perfect order performance? A. 90 percent B. 60 percent C. 0 percent D. 66 percent

D. 66 percent

Zanda Company has told a supplier that it is difficult to contact people in the supplier's company to learn the status of its orders and when they might arrive. Zanda is explaining which type of expectation it has of this supplier? A. Reliability B. Courtesy C. Credibility D. Access

D. Access

Which of the following statements most clearly expresses a company's commitment to customer success? A. "We attempt to meet or exceed the expectations of all of our customers." B. "We attempt to meet our standards of providing perfect order performance to all of our customers." C. "We attempt to meet the requirements of our customers." D. All of these are clear expressions of commitment to customer success.

D. All of these are clear expressions of commitment to customer success.

Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered. In fact, the customer received 95 percent of the items. This is an example of which "gap" in the customer satisfaction model? A. Performance gap B. Knowledge gap C. Standards gap D. Communications gap

D. Communications gap

A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destination in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. If the firm improves its performance in on-time delivery to 98 percent, what is its new perfect order performance? A. 88 percent B. 98 percent C. 0 percent D. 80 percent E. 71.4 percent

E. 71.4 percent