KPIs & Performance Measurement Flashcards

Which metric measures the percentage of orders delivered in full, on time, and with accurate documentation?

Answer: Perfect Order Rate

Perfect Order Rate captures all three dimensions—completeness, timeliness, and accuracy—in a single composite KPI.

A logistics manager notices that Inventory Days of Supply has increased from 30 to 45 days. This most likely indicates:

Answer: Excess inventory accumulation

A rising Days of Supply figure means inventory is being held longer, signaling potential overstocking or slowing demand.

In a balanced scorecard framework applied to logistics, which perspective focuses on process efficiency metrics like order cycle time?

Answer: Internal process perspective

The internal process perspective tracks operational efficiency metrics such as order cycle time and throughput.

Freight cost per unit shipped is best categorized as which type of KPI?

Answer: Cost metric

Freight cost per unit shipped directly measures expenditure efficiency and belongs to the cost category of logistics KPIs.

Which statistical tool is most appropriate for identifying the root cause of repeated on-time delivery failures?

Answer: Pareto chart

A Pareto chart separates the vital few causes from the trivial many, making it ideal for root-cause analysis of recurring failures.

Warehouse utilization rate is calculated as:

Answer: Actual storage used ÷ Total storage capacity × 100

Warehouse utilization rate expresses the percentage of available storage space currently occupied.

A shipper's carrier on-time pickup rate drops from 97% to 88%. The FIRST corrective action should be to:

Answer: Analyze root causes with the carrier

Before taking drastic action, a logistics professional should collaborate with the carrier to understand and address the underlying causes.