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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
The purpose of price differentiation is to:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
The primary risk associated with outsourcing innovative components to suppliers is:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?
Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

Question 127 - CSCP discussion

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A manufacturer and the distributors of its products have decided to focus on price and product availability as strategic priorities. Which of the following values would be the most appropriate measure of customer service?

A.
Manufacturer's volume flexibility
Answers
A.
Manufacturer's volume flexibility
B.
Order-fulfillment lead times
Answers
B.
Order-fulfillment lead times
C.
Distributors' order-fill rates
Answers
C.
Distributors' order-fill rates
D.
Supply chain inventory days of supply
Answers
D.
Supply chain inventory days of supply
Suggested answer: C

Explanation:

Order-fill rate is a key measure of customer service for companies focusing on price and product availability. It indicates the percentage of customer orders that are fulfilled completely and on time. A high order-fill rate reflects the ability to meet customer demand efficiently, which is crucial when emphasizing product availability. This metric directly impacts customer satisfaction and loyalty, as customers expect reliable and prompt delivery of products.

Reference:

'The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM' by Chuck Munson

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra and Peter Meindl

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asked 16/09/2024
Thomas Kincer
39 questions
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