Supply Chain Management Supply Chain Management Customer Service & Order Fulfillment

Question 1

What is the 'order cycle time' in supply chain management?

Accepted Answer

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

Answer

Order cycle time measures the end-to-end elapsed time from order placement to delivery, a key indicator of fulfillment efficiency and customer service.

Question 2

What does 'perfect order rate' measure?

Accepted Answer

The percentage of orders delivered on time, in full, undamaged, and with correct documentation

Answer

The perfect order rate is a composite KPI measuring whether orders are delivered on time, in full, damage-free, and with accurate invoicing—a gold standard customer service metric.

Question 3

What is 'order fill rate'?

Accepted Answer

The percentage of customer orders fulfilled completely from available stock

Answer

Order fill rate measures the proportion of orders that can be completely fulfilled from on-hand inventory, reflecting stock availability relative to customer demand.

Question 4

Which fulfillment model allows a retailer to sell products it doesn't physically stock, with suppliers shipping directly to customers?

Accepted Answer

Drop shipping

Answer

Drop shipping eliminates the retailer's need to hold inventory by having suppliers ship products directly to end customers on the retailer's behalf.

Question 5

What is 'available-to-promise' (ATP) in order management?

Accepted Answer

The quantity of a product that can be committed to a customer order based on current inventory and planned production

Answer

ATP logic calculates uncommitted inventory minus existing demand to determine how much product can be promised to new customer orders without causing shortages.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Supply Chain Management Customer Service & Order Fulfillment