Customer Relationship Management Trivia Questions
There is a business saying that, "The customer is always right." In essence, it means that the customer deserves utmost care and when in problems and need help, there should be a good customer relationship officer. Find out more below.
Questions and Answers
- 1.
JIT philosophy does NOT include which of concept:
- A.
Eliminate Waste
- B.
Cut excess capacity or inventory
- C.
Bullwhip effect
- D.
Remove non-value added activities
- E.
None of the above
Correct Answer
C. Bullwhip effectExplanation
The JIT (Just-in-Time) philosophy focuses on eliminating waste, cutting excess capacity or inventory, and removing non-value added activities. The Bullwhip effect, however, is not a concept included in the JIT philosophy. The Bullwhip effect refers to the phenomenon where small fluctuations in demand at the end of the supply chain can result in larger fluctuations in demand further up the chain, causing inefficiencies and increased costs. Therefore, the correct answer is the Bullwhip effect.Rate this question:
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- 2.
Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occurs is known as:
- A.
Kawasaki
- B.
Jidoka
- C.
Poka-Yoke
- D.
Toyota RFID
Correct Answer
B. JidokaExplanation
Jidoka is a term used in lean manufacturing that refers to the practice of automatically stopping a process when a problem occurs and then fixing the problem on the line itself. This approach helps to ensure that defects are not passed on to the next stage of production and allows for immediate resolution of issues. Jidoka is a key principle of the Toyota Production System and is aimed at achieving high quality and efficiency in manufacturing processes.Rate this question:
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- 3.
What are the four causes of the bullwhip effect?
- A.
Demand forecast updating, order batching, price fluctuation, rationing and shortage gaming
- B.
Silo mentality, lack of trust, lack of knowledge, supply chain visibility
- C.
Order fulfillment, product development, returns management, and customer service management
- D.
Supply chain visibility, customer relationship management, price fluctuations, demand management
Correct Answer
A. Demand forecast updating, order batching, price fluctuation, rationing and shortage gamingExplanation
The correct answer is demand forecast updating, order batching, price fluctuation, rationing and shortage gaming. These four causes contribute to the bullwhip effect in supply chains. Demand forecast updating refers to inaccurate or unreliable demand forecasts, which can lead to over or underestimating customer demand. Order batching occurs when orders are placed in large quantities at irregular intervals, causing fluctuations in demand. Price fluctuation refers to changing prices within the supply chain, which can cause uncertainty and lead to hoarding or panic buying. Rationing and shortage gaming occur when there is a shortage of supply, leading to unethical practices such as hoarding or manipulating demand to secure supply.Rate this question:
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- 4.
Which of the following is NOT an obstacle to integration:
- A.
Silo mentality
- B.
Order fulfillment
- C.
Lack of supply visibility
- D.
Lack of trust
- E.
Lack of knowledge
Correct Answer
B. Order fulfillmentExplanation
Order fulfillment is not an obstacle to integration because it refers to the process of receiving, processing, and delivering customer orders. While it is an important aspect of business operations, it does not directly hinder integration between different departments or systems within an organization. Integration obstacles typically involve factors such as silo mentality, lack of supply visibility, lack of trust, and lack of knowledge, which can hinder effective communication and collaboration between different parts of an organization.Rate this question:
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- 5.
Customer Relationship Management includes which of the following processes:
- A.
Sharing information
- B.
Formation of cross-company teams to improve product design
- C.
Development of shared goals
- D.
Improved performance and profitability for trading partners
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
Customer Relationship Management (CRM) includes all of the mentioned processes. Sharing information is a crucial aspect of CRM as it allows businesses to gather and analyze customer data to enhance their understanding of customer needs and preferences. Formation of cross-company teams helps in improving product design by incorporating diverse perspectives and expertise. Development of shared goals ensures alignment between the company and its customers, leading to better collaboration and customer satisfaction. Improved performance and profitability for trading partners is another objective of CRM, as it aims to create mutually beneficial relationships. Therefore, all of these processes are integral to CRM.Rate this question:
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- 6.
Stocking up to take advantage of low price offers is called:
- A.
Everyday low prices
- B.
Shortage gaming
- C.
Forward buying
- D.
Rationing
Correct Answer
C. Forward buyingExplanation
Forward buying refers to the practice of purchasing goods in advance, usually in large quantities, to take advantage of low price offers. This strategy allows individuals or businesses to stock up on products when they are available at a lower cost, ensuring that they have an ample supply for future use. By buying in advance, they can avoid paying higher prices in the future when the demand for the product increases or when the price goes up. This approach is commonly used by retailers or consumers who want to save money by purchasing items at a discounted rate and storing them for later use.Rate this question:
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- 7.
When buyers inflate orders to satisfy their real needs, this process is called:
- A.
Shortage gaming
- B.
Rationing
- C.
Price fluctuations
- D.
Order batching
Correct Answer
A. Shortage gamingExplanation
Shortage gaming refers to the practice of buyers artificially inflating their orders in order to meet their actual needs. This can be done to ensure that they receive an adequate supply of a product, especially in situations where there may be limited availability or high demand. By placing larger orders than necessary, buyers can secure their desired quantity and potentially avoid shortages or delays in receiving the product. This practice can disrupt supply chains and lead to inefficiencies in inventory management.Rate this question:
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- 8.
The supplier may allocate product in proportion to what buyers ordered when demand exceeds a supplier's finished goods availability.
- A.
Shortage gaming
- B.
Rationing
- C.
Forward buying
- D.
Every day low prices
Correct Answer
B. RationingExplanation
Rationing is the correct answer because it refers to the practice of allocating a limited supply of a product or resource among buyers when demand exceeds the supplier's availability. In this situation, the supplier may distribute the product in proportion to what buyers ordered, ensuring that everyone receives a fair share. This helps to manage shortages and prevent any one buyer from hoarding or gaming the system.Rate this question:
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- 9.
What factors can cause disruptions in the supply chain?
- A.
Weather
- B.
Political upheavals
- C.
Customs delays
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
Disruptions in the supply chain can be caused by various factors such as weather conditions, political upheavals, and customs delays. Weather events like hurricanes, floods, or snowstorms can disrupt transportation and damage infrastructure, leading to delays in the supply chain. Political upheavals such as riots, protests, or changes in government policies can also disrupt the flow of goods and services. Customs delays, on the other hand, can occur due to administrative issues, inspections, or changes in regulations. Therefore, all of the mentioned factors can potentially cause disruptions in the supply chain.Rate this question:
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- 10.
Which of the following activities is NOT used to manage supply chain risks?
- A.
Increase safety stock and forward buying
- B.
Diversify the supply bases
- C.
Utilize a supply chain IT system
- D.
Identify backup suppliers and logistics services
- E.
Demand forecast updating
Correct Answer
E. Demand forecast updatingExplanation
Demand forecast updating is not used to manage supply chain risks because it is a process that focuses on predicting future demand for products or services. While accurate demand forecasting is important for effective supply chain management, it does not directly address or mitigate risks associated with the supply chain. Instead, activities such as increasing safety stock, diversifying supply bases, utilizing a supply chain IT system, and identifying backup suppliers and logistics services are commonly used to manage and mitigate supply chain risks. These activities help to ensure continuity and resilience in the supply chain, reducing the impact of potential disruptions or uncertainties.Rate this question:
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- 11.
A method in which production of the item begins in advance of customer needs.
- A.
Push system
- B.
Pull system
- C.
JIT System
- D.
Lean manufacturing
Correct Answer
A. Push systemExplanation
A push system is a method where production of an item starts in advance of customer needs. In this system, products are pushed through the production process based on forecasts and predictions rather than actual customer demand. This approach is commonly used when there is uncertainty in demand or when lead times are long. Push systems can lead to inefficiencies such as overproduction and excess inventory, but they can also ensure that products are readily available when customers need them.Rate this question:
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- 12.
A method in which customer demand activates production of the service or item.
- A.
Pull system
- B.
JIT System
- C.
Push system
- D.
Lean manufacturing
Correct Answer
A. Pull systemExplanation
A pull system is a method in which customer demand activates production of the service or item. This means that production is initiated based on actual customer orders or demand, rather than producing items in anticipation of future demand. In a pull system, the focus is on reducing waste and improving efficiency by only producing what is needed when it is needed. This helps to minimize inventory levels, reduce lead times, and improve overall customer satisfaction.Rate this question:
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- 13.
How does JIT commits to quality?
- A.
Quality at the source (Jidoka)
- B.
Consistent Quality
- C.
High performance quality
- D.
Continuos improvement and preventative maintenance
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
JIT (Just-in-Time) commits to quality through various ways. Quality at the source (Jidoka) ensures that each process produces quality products, preventing defects from being passed on. Consistent quality means maintaining high standards throughout the production process, ensuring that every product meets the required specifications. High performance quality focuses on achieving excellence and exceeding customer expectations. Continuous improvement and preventative maintenance involve constantly analyzing and enhancing processes to eliminate waste and improve quality. Therefore, all of the above options demonstrate how JIT commits to quality.Rate this question:
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- 14.
Which department are considered part of the JIT philosophy?
- A.
Human Resources
- B.
Logistics and Transportation
- C.
Information Technology
- D.
Facilities and Manufacturing Systems
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
The JIT (Just-in-Time) philosophy emphasizes the elimination of waste and the continuous improvement of processes. All of the departments mentioned - Human Resources, Logistics and Transportation, Information Technology, and Facilities and Manufacturing Systems - play a crucial role in implementing and supporting the JIT philosophy. Human Resources ensures efficient hiring and training practices, Logistics and Transportation ensures timely delivery of materials, Information Technology supports real-time data exchange, and Facilities and Manufacturing Systems optimize production processes. Therefore, all of these departments are considered part of the JIT philosophy.Rate this question:
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- 15.
What criteria do managers use to determine whether to consolidate or expand their warehouse operations?
- A.
Market demand is random
- B.
Areas of higher than average demand offset by areas with lower than average demand
- C.
Distance/Responsiveness.
- D.
Transportation costs
- E.
A and B only
Correct Answer
E. A and B onlyExplanation
Managers use the criteria of market demand and areas of higher than average demand offset by areas with lower than average demand to determine whether to consolidate or expand their warehouse operations. These factors help them assess the need for consolidation or expansion based on the fluctuating market demand and the potential for efficiency and cost savings by consolidating or expanding in specific areas. Transportation costs and distance/responsiveness are not mentioned as criteria in this context.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 05, 2010Quiz Created by
Mastone
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