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Question 332 - CSCP discussion

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Which of the following metrics is the most appropriate measure of the availability of products to ship in a make-to-stock environment?

A.
Backlog level
Answers
A.
Backlog level
B.
Fill rate
Answers
B.
Fill rate
C.
Perfect order percentage
Answers
C.
Perfect order percentage
D.
Average customer order lead time
Answers
D.
Average customer order lead time
Suggested answer: B

Explanation:

In a make-to-stock environment, the most appropriate measure of the availability of products to ship is the fill rate. Fill rate measures the percentage of customer orders that can be fulfilled from available inventory without delay. Key aspects include:

Customer Satisfaction: A high fill rate indicates that customers receive their orders promptly, leading to higher satisfaction levels.

Inventory Efficiency: It reflects the efficiency of inventory management practices and the ability to maintain adequate stock levels to meet demand.

Order Fulfillment: The fill rate directly impacts the order fulfillment process and is a critical metric for assessing the effectiveness of supply chain operations.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.

Ballou, R. H. (2004). Business Logistics/Supply Chain Management. Pearson.

asked 16/09/2024
Michael Aragon
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