KPIs & Performance Measurement Flashcards
7 cards from real CPL practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 KPIs & Performance Measurement flashcards as text
Which metric best measures the speed of a distribution center's receiving process?
Answer: Dock-to-stock time
Dock-to-stock time measures how quickly inbound goods move from the receiving dock to their storage location, indicating receiving efficiency.
When setting KPI targets for logistics operations, the SMART criteria require that targets be:
Answer: Specific, Measurable, Achievable, Relevant, and Time-bound
SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound—the five criteria for effective KPI target setting.
A logistics KPI dashboard shows that backorder rate has risen sharply. Which upstream metric should be investigated first?
Answer: Supplier on-time delivery rate
Rising backorders often stem from supplier delivery failures; checking supplier on-time delivery rate is the logical first upstream investigation.
Line item fill rate differs from order fill rate in that it measures:
Answer: Percentage of individual SKU quantities shipped vs. ordered
Line item fill rate evaluates fulfillment at the individual SKU level, while order fill rate evaluates whether entire orders were complete.
Which of the following is an example of a leading indicator in logistics performance management?
Answer: Supplier lead time variability trend
Supplier lead time variability is a leading indicator because worsening variability predicts future fulfillment problems before they appear in output metrics.
Total Logistics Cost as a percentage of revenue is used primarily to:
Answer: Benchmark overall supply chain cost efficiency against industry peers
Expressing total logistics cost as a revenue percentage creates a normalized ratio that enables meaningful comparisons across companies and time periods.
A company reduces its Cash-to-Cash Cycle Time from 60 days to 40 days. The PRIMARY financial benefit is:
Answer: Improved working capital availability
Shortening the Cash-to-Cash Cycle Time means cash is tied up in operations for fewer days, freeing working capital for other uses.