Figure 1. Customer Survey Data

Based on the recent survey of all of its 200 customers, Techsoft Sales team has prepared the following report:

Currently Techsoft has an exceptionally high customer service level of 98%, much higher than any of its competitors. Customers showed positive response towards a possible lower but acceptable service level. Results of the survey showed 45 of the customers would be serviced at 90% (classified hereon as Category B) and the rest would have to be serviced at 95% (Category A).

Question	Yes		No
What is your order lead time?	Category A (95%)	Category B (90%)	Category A	Category B
Customers willing to submit/freeze orders 6 weeks before receipt	153	44	2	1	200
Customers willing to submit/freeze orders 4 weeks before receipt	152	42	3	3	200
Customers willing to submit/freeze your orders 2 weeks before you receive them?	50	42	105	3	200

What is the lead time for orders?

What does 'customer service level' mean?

Who conducted the survey and why?

What does it mean to freeze orders 6 or 4 weeks before receipt?

What does it mean to freeze orders two weeks before receipt?

What does it mean when the customer is serviced at 90% or 95%?

What is the current customer service level of Technosoft?

How does higher customer service impact inventory levels?

How does higher customer service affect lead time?

Is it a good idea to categorize customers based on requested service level, and why?

Is having higher customer service an advantage for Technosoft?

What conclusions can be drawn from the customer survey?