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

The time it takes to produce a single unit

Answer

The frequency at which orders are placed with suppliers

Answer

The time required to process a return

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 number of orders processed per hour in a warehouse

Answer

The ratio of online orders to phone orders

Answer

The percentage of orders that qualify for free shipping

Question 3

What is 'order fill rate'?

Accepted Answer

The percentage of customer orders fulfilled completely from available stock

Answer

The speed at which warehouse workers pack orders

Answer

The cost to fulfill a single customer order

Answer

The ratio of orders shipped via ground vs. air

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

Vendor-managed inventory

Answer

Cross-docking

Answer

Consignment selling

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

A customer's credit limit for purchasing on account

Answer

A guaranteed delivery time window offered to premium customers

Answer

The maximum discount a sales rep can offer

Question 6

What does 'OTIF' stand for in customer service metrics?

Accepted Answer

On Time In Full

Answer

Order Tracking and Invoice Form

Answer

Outbound Transportation and Inventory Forecast

Answer

Optimized Trade and Invoice Filing