Which of the following are common elements of the total cost of ownership model:
-Acquisition cost
-None of these is part of the TCO model
-Transportation cost
-Operation cost
-All of these are part of the TCO model
All of these are part of the TCO model
The ___________ component of customer service includes such factors as availability of spare parts, technical support, feedback and complaint processes, et cetera.
post-transaction
A leveling of production costs between China, Mexico, and the United States means that U.S. firms will increasingly focus on _____________ to be competitive.
-all of these
-agility
-responsiveness
-flexibility
-none of these
all of these
_____________ is the idea that there are many other costs than just the acquisition cost that should be accounted for in a purchase.
Total cost of ownership
The ___________ component of customer service includes common metrics of customer service such as percentage of items in stock, percentage of time an item is in stock, fill rate, lead time, et cetera.
transaction
The _____________ component of customer service concerns how the policies, organizational structure, and culture of a company affect customer service.
pre-transaction
Which of the following is true of the item fill rate?
-Two different SKUs can have the same IFRs and yet have different PTIS.
-Item fill rate (IFR) is the percentage of demand fulfilled from on-hand inventory.
-The item fill rate is the number of units of
All of these are true
If store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category, then
the calculated percentage of items in stock is 37% (assuming perpetual inventory is accurate)
If store perpetual inventory is greater than zero for 70 days of the 100 days checked for a particular item in a category, then
the calculated percentage of time in stock is 70% (assuming perpetual inventory is accurate)
Assume an item has a demand of 1 per day and a demand of 3 every 7th day. However, the item is out of stock every 7th day. What would be the item fill rate (IFR).
67%
Perpetual inventory is one of the major ways that ____________________ and percentage of items in stock are measured.
percentage of time in stock
______________ is when a retailer thinks there is more inventory than there actually is.
Phantom inventory
If store perpetual inventory is greater than zero for 40 of the 100 SKUs in a category, then
the calculated percentage of items in stock is 40% (assuming perpetual inventory is accurate)
Assume an item is in stock for 2 weeks but out of stock on the third week. We could use this information to calculate __________________.
the percentage of time in stock (PTIS)
Assume an item has a demand of 1 per day and a demand of 6 every 5th day. However, the item is out of stock every 5th day. What would be the item fill rate (IFR).
40%
The amount received by a firm is 240 units and it sold 75 units. Assuming initial inventory is zero, what is the perpetual inventory?
165 units
If store perpetual inventory is greater than zero for 45 days of the 100 days checked for a particular item in a category, then
the calculated item fill rate is 45% (assuming perpetual inventory is accurate)
_____________________tells you lost sales using the percentage of demand fulfilled from on hand inventory.
-the percentage of time in stock (PTIS)
-the item fill rate (IFR)
-none of these
-the percentage of items in stock
the item fill rate (IFR)
Perpetual inventory is:
Initial inventory + Amount received - amount sold
When a shopper in a retail store encounters an out-of-stock, there are a number of reactions that are possible. Which of the following are options discussed in this lesson?
-Switch to another brand
-None of these are options
-Switch to another size, flavo
All of these are options
One approach to estimating the cost of a stockout per unit of lost sale is to calculate an estimate of the ____________.
expected value
Imagine a customer is looking for a giant specialty candy bar in a store but it is not on the shelf. Suppose that the retail margin on the candy bar is $3 and that 40% of the customers forgo having the candy bar but the other 60% switch to another brand.
$1.20
Retail shelf is very expensive because ___________:
the opportunity cost of alternate products
You only need two parameters to define a normal distribution; the mean and_____________
the standard deviation
For the normal distribution, about __________ of the observations are within +/- 1 standard deviation of the mean, 95% within +/- 2 standard deviations, and about 99% within +/- 3 standard deviations.
None of these
You want to compute an optimal service level for stocking inventory. The correct formula is:
The cost of not having enough per unit, divided by the sum of the cost of having too much and the cost of not having enough.
A store manager says: "I shoot for a 95% service level." What the manager means is that:
When the customer wants a product, she wants it to be there at least 95% of the time.
For the normal distribution, about 68% of the observations are within +/- 1 standard deviation of the mean, 95% within +/- 2 standard deviations, and about _________ within +/- 3 standard deviations.
-83%
-84%
-86%
-85%
None of these
You can estimate the mean by taking the ________________
average