CPL KPIs & Performance Measurement 2 — Questions and Answers
Question 1: Which metric measures the percentage of orders delivered in full, on time, and with accurate documentation?
- Perfect Order Rate (Correct answer)
- Fill Rate
- Order Cycle Time
- Dock-to-Stock Time
Correct answer: Perfect Order Rate
Perfect Order Rate captures all three dimensions—completeness, timeliness, and accuracy—in a single composite KPI.
Question 2: A logistics manager notices that Inventory Days of Supply has increased from 30 to 45 days. This most likely indicates:
- Improved service levels
- Excess inventory accumulation (Correct answer)
- Faster inventory turnover
- Reduced carrying costs
Correct answer: Excess inventory accumulation
A rising Days of Supply figure means inventory is being held longer, signaling potential overstocking or slowing demand.
Question 3: In a balanced scorecard framework applied to logistics, which perspective focuses on process efficiency metrics like order cycle time?
- Financial perspective
- Customer perspective
- Internal process perspective (Correct answer)
- Learning and growth perspective
Correct answer: Internal process perspective
The internal process perspective tracks operational efficiency metrics such as order cycle time and throughput.
Question 4: Freight cost per unit shipped is best categorized as which type of KPI?
- Quality metric
- Productivity metric
- Cost metric (Correct answer)
- Time metric
Correct answer: Cost metric
Freight cost per unit shipped directly measures expenditure efficiency and belongs to the cost category of logistics KPIs.
Question 5: Which statistical tool is most appropriate for identifying the root cause of repeated on-time delivery failures?
- ABC analysis
- Pareto chart (Correct answer)
- Economic Order Quantity model
- Safety stock formula
Correct 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.
Question 6: Warehouse utilization rate is calculated as:
- Actual storage used ÷ Total storage capacity × 100 (Correct answer)
- Number of picks per hour ÷ Total labor hours
- Total throughput ÷ Number of receiving docks
- Inventory value ÷ Warehouse operating cost
Correct answer: Actual storage used ÷ Total storage capacity × 100
Warehouse utilization rate expresses the percentage of available storage space currently occupied.
Question 7: A shipper's carrier on-time pickup rate drops from 97% to 88%. The FIRST corrective action should be to:
- Switch carriers immediately
- Analyze root causes with the carrier (Correct answer)
- Increase safety stock to compensate
- Reduce order frequency
Correct 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.
CPL KPIs & Performance Measurement 2
Which metric measures the percentage of orders delivered in full, on time, and with accurate documentation?