CLP CLP Customer Service & Demand Management 1 — Questions and Answers
Question 1: Which metric measures the percentage of customer orders shipped completely on the first attempt?
- Perfect Order Rate
- Fill Rate (Correct answer)
- Order Cycle Time
- On-Time Delivery Rate
Correct answer: Fill Rate
Fill rate measures the percentage of customer demand satisfied from available stock on the first shipment attempt.
Question 2: What is the primary purpose of a Service Level Agreement (SLA) in logistics?
- To negotiate carrier rates
- To define expected performance standards between parties (Correct answer)
- To schedule warehouse labor
- To calculate safety stock levels
Correct answer: To define expected performance standards between parties
An SLA formally documents the agreed-upon performance standards and responsibilities between a logistics provider and its customer.
Question 3: Demand sensing uses which type of data to improve short-term forecasting accuracy?
- Historical sales data only
- Near-real-time point-of-sale and shipment data (Correct answer)
- Annual budget projections
- Supplier lead time records
Correct answer: Near-real-time point-of-sale and shipment data
Demand sensing leverages near-real-time data such as point-of-sale signals and shipment records to generate more accurate short-term demand forecasts.
Question 4: A company experiences a sudden spike in customer orders that exceeds forecasted demand. This is best described as:
- Safety stock consumption
- Demand variability (Correct answer)
- Bullwhip effect trigger
- Cycle stock depletion
Correct answer: Demand variability
Demand variability refers to fluctuations in customer order patterns that deviate from forecasted levels.
Question 5: Which customer service element refers to the time elapsed from order placement to delivery?
- Replenishment lead time
- Order cycle time (Correct answer)
- Dwell time
- Transit time
Correct answer: Order cycle time
Order cycle time is the total elapsed time from when a customer places an order to when the order is received.
Question 6: Collaborative Planning, Forecasting, and Replenishment (CPFR) is designed to improve supply chain performance by:
- Automating carrier selection
- Sharing forecasts and sales data between trading partners (Correct answer)
- Reducing warehouse headcount
- Centralizing all procurement decisions
Correct answer: Sharing forecasts and sales data between trading partners
CPFR improves supply chain efficiency by enabling trading partners to share demand forecasts, sales data, and replenishment plans collaboratively.
CLP CLP Customer Service & Demand Management 1
Which metric measures the percentage of customer orders shipped completely on the first attempt?