Assignment
A. Describe the two approaches to order management. How are they different? How are they related?
B. Compare and contrast the concepts of order-to-cash cycle time and order cycle time.
C. Customer service is often viewed as the primary interface between logistics and marketing. Discuss the nature of this interface and how it might be changing.
D. Explain the relationship between customer service levels and the costs associated with providing those service levels.
E. Effective management of customer service requires measurement. Discuss the nature of performance measurement in the customer service area.
F. Assume an organization's current service level on order fill is as follows:
Current order fill 80%
Number of orders per year 5 000
Percentage of unfilled orders back-ordered 70%
Percentage of unfilled orders cancelled 30%
Backorder costs per order $150
Lost pretax profit per cancelled order $12 500
a) What is the lost cash flow to the seller at this 80 percent service level?
b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent?
c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.