Please read the chapter8 (From p285.) first and answer the even number of study problems(2,4,6,8,10,12) by yourself. Single space more than one page. do not have the title of question
2. Describe the two approaches to order management. How are they different? How are they related?
6. 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.
8. Explain the relationship between customer service levels and the costs associated with providing those service levels.
10. Effective management of customer service requires measurement. Discuss the nature of performance measurement in the customer service area.
12. Assume an organizations 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?
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