Customer Service & Order Management Flashcards

A perfect order is defined as one that is delivered:

Answer: Complete, on time, damage-free, and with accurate documentation

The perfect order metric measures the percentage of orders that meet all four conditions: complete quantity, on-time delivery, undamaged goods, and correct paperwork.

Order cycle time (OCT) in logistics measures:

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

OCT captures the entire customer experience window—from order placement through delivery—and is a key driver of customer satisfaction.

Which document serves as a receipt for goods and a contract of carriage between a shipper and a carrier?

Answer: Bill of lading

A bill of lading is a legally binding document that acknowledges receipt of goods for shipment and specifies the terms of their transport.

A service level agreement (SLA) in logistics typically defines:

Answer: Agreed performance standards such as on-time delivery rate and order fill rate between parties

An SLA formalizes the expected performance levels for logistics services, providing measurable targets and remedies if standards are not met.

Which customer service metric measures the probability that demand will be met from available inventory without a stockout?

Answer: Cycle service level

Cycle service level is the probability that all customer demand during a replenishment cycle will be filled from stock without a backorder or lost sale.

Reverse logistics refers to the processes involved in:

Answer: Moving goods from customers back through the supply chain for return, repair, or recycling

Reverse logistics manages product returns, repairs, remanufacturing, and end-of-life disposal, recovering value and complying with environmental regulations.