Question 24 (2.5 points) The Chief Supply Chain Officer of a large firm recently went to a consulting meeting at a large warehouse. The warehouse manager told her that their goal was the industry standard 95% service level and orders were filled as they came in. What is one recommendation she offered? Increase service level Maintain current practices Apply more traditional operational policies Segment customers Question 26 (2.5 points) H.S. Sponge is a customer of the Mast General Store. H.S. Sponge makes up 20% of the store's total sales volume. H.S. Sponge calls in orders twice a week and has a tedious order verification process, thus taking orders from this customer represents 30% of the store's total order taking costs. Filling H.S. Sponge's orders is relatively painless due to close geography and delivery efficiencies, representing only 10% of the store's order filling costs. Collections from the H.S. Sponge account are particularly difficult, representing 30% of the Mast General Store's total collection costs. Here is the total accounting information for the Mast General Store. Take Orders $ 125,000 Salaries $120,000 Fill Orders $ 105,000 Supplies $150,000 Collections $ 90,000 Depreciation $ 50,000 TOTAL: $ 320,000 $ 320,000 The Mast General Store believes that H. S. Sponge is a key profitable customer. Using the traditional accounting mode, what is the cost-to-serve for H. S. Sponge that the store's Accounting department would report to the financial community? $64,000 $32,000 The Mast General Store believes that H. S. Sponge is a key profitable customer. Using the traditional accounting mode, what is the cost-to-serve for H. S. Sponge that the store's Accounting department would report to the financial community? $64,000 $32,000 $18,000 $54,000 Question 24 (2.5 points) The Chief Supply Chain Officer of a large firm recently went to a consulting meeting at a large warehouse. The warehouse manager told her that their goal was the industry standard 95% service level and orders were filled as they came in. What is one recommendation she offered? Increase service level Maintain current practices Apply more traditional operational policies Segment customers Question 26 (2.5 points) H.S. Sponge is a customer of the Mast General Store. H.S. Sponge makes up 20% of the store's total sales volume. H.S. Sponge calls in orders twice a week and has a tedious order verification process, thus taking orders from this customer represents 30% of the store's total order taking costs. Filling H.S. Sponge's orders is relatively painless due to close geography and delivery efficiencies, representing only 10% of the store's order filling costs. Collections from the H.S. Sponge account are particularly difficult, representing 30% of the Mast General Store's total collection costs. Here is the total accounting information for the Mast General Store. Take Orders $ 125,000 Salaries $120,000 Fill Orders $ 105,000 Supplies $150,000 Collections $ 90,000 Depreciation $ 50,000 TOTAL: $ 320,000 $ 320,000 The Mast General Store believes that H. S. Sponge is a key profitable customer. Using the traditional accounting mode, what is the cost-to-serve for H. S. Sponge that the store's Accounting department would report to the financial community? $64,000 $32,000 The Mast General Store believes that H. S. Sponge is a key profitable customer. Using the traditional accounting mode, what is the cost-to-serve for H. S. Sponge that the store's Accounting department would report to the financial community? $64,000 $32,000 $18,000 $54,000
