1. Explain how order management and customer service are related. 2. Describe th
ID: 391999 • Letter: 1
Question
1. Explain how order management and customer service are related.
2. Describe the two approaches to order management. How are they different. How are they related.
3. What is the role of activity-based costing in customer relationship management? In customer segmentation?
4. Compare and Contrast the concepts of order-to-cash cycle time and order cycle time.
5. Explain the impacts of order cycle time length and variability on both buyer and sellers.
6.Explain why inventory costs and inventory levels have declined relative to GPD over the last 20 years. Is it beneficial to the economy? Why or why not.
7. What are the major components of inventory carrying cost? How would you measure capital cost for making inventory policy decisions?
8. How can inventory carrying cost be calculated for a specific product? What suggestions would you offer for determining the measure of product value to be used in this calculation?
9. Explain the differences between inventory carrying costs and ordering costs.
10. Why is it usually more difficult to determine the cost of lost sales for finished goods than it is for raw materials inventories.
Explanation / Answer
1. Explain how order management and customer service are related. Order management refers to the means used by the buyers and the sellers to communicate. The aim of customer service is to satisfy the customers. Order management includes how a customer places his order and how the order is executed. Order management is required to be efficient to satisfy the customers. Order management and customer service are linked to each other in satisfying the customer and maintaining profitability of business.
2. Describe the two approaches to order management. How are they different. How are they related. The following are the two approaches to order management: 1) Influencing of an order, and 2) Execution of order
Effective order management leads to customer satisfaction. The phase of influencing of an order occurs first and refers to the attempts of an organization to change the manner of customer placing orders. Second phase is the execution of an order, and this phase occurs once the order is received by the organization.
3. What is the role of activity-based costing in customer relationship management? In customer segmentation?
Activity based costing in customer relationship management plays the role of assigning of cost to the products. Activity based costing helps to determine the strategies of customer segmentation by bringing development in the profiles of consumer profitability. It also assists in tracking the activities that drive the costs to a particular product. Here, customer relationship mangement is used.
4. Compare and Contrast the concepts of order-to-cash cycle time and order cycle time. Order-to-cash time refers to the total time that is required for business process. This will start from the point of receiving the orders of the custers till the delivery or the satisfaction of customer.
Order cycle time refers to the period of time between receiving of an order and the receipt or the delivery of the order. It is a traditional approach.
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