* Context: Customer relationship management (CRM) systems aim to manage a company's interactions with current and potential customers.
* Options Breakdown:
* A. Profits are maximized: While a potential outcome, it is a broader financial goal rather than a direct result of CRM.
* B. Retention of key customers is increased: CRM focuses on building and maintaining relationships, leading to higher customer retention.
* C. Product options are increased: Not directly related to CRM implementation.
* D. Transaction costs are decreased: May be an indirect benefit but not the primary focus of CRM.
* Correct Answer Justification: The primary purpose of CRM is to enhance customer satisfaction and loyalty, thereby increasing the retention of key customers, which is crucial for long-term business success.
:
CRM system benefits and implementation guides
Industry reports on CRM effectiveness in improving customer retention

Cash-to-cash conversion time is a key performance metric that measures the efficiency of a company's cash flow cycle:
* Material Acquisition to Sales: It starts from the time cash is spent to acquire raw materials and ends when the company receives payment for the finished goods.
* Inventory Management: Efficient inventory management reduces the time materials sit as inventory, speeding up the conversion cycle.
* Production Efficiency: Streamlining production processes shortens the time products are manufactured and ready for sale.
* Receivables Management: Effective receivables management ensures quick collection of payments, reducing the overall cash-to-cash cycle time.
:
Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.
Lambert, D. M., & Cooper, M. C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29(1), 65-83.