Supply Chain Planning and Execution Flashcards

What is the 'order cycle time' metric measuring in supply chain execution?

Answer: The elapsed time from when a customer places an order to when they receive it

Order cycle time measures the end-to-end time from customer order placement to delivery, a key customer service metric.

Which of the following is a primary function of a Transportation Management System (TMS)?

Answer: Route optimization, carrier selection, freight audit, and shipment tracking

A TMS automates transportation planning, execution, and settlement activities to reduce freight costs and improve service.

In supply chain execution, 'track and trace' capabilities primarily benefit:

Answer: Real-time shipment visibility, proactive exception management, and customer communication

Track and trace provides end-to-end shipment visibility, enabling proactive management of delays and accurate customer delivery communication.

What is 'vendor-managed inventory' (VMI)?

Answer: A collaboration model where the supplier manages replenishment of the customer's inventory based on shared data

In VMI, the supplier monitors the customer's inventory levels and autonomously triggers replenishment to agreed service levels.

Which KPI measures the percentage of orders fulfilled completely, on time, and damage-free?

Answer: Perfect order rate

Perfect order rate is a composite metric that measures orders delivered complete, on time, undamaged, and with correct documentation.

In international trade, an 'Incoterm' such as DDP (Delivered Duty Paid) means:

Answer: The seller bears all costs and risks until goods are delivered to the buyer's named location, including duties

DDP is the maximum obligation for the seller — they handle all transportation, insurance, customs clearance, and duty payment to the destination.