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 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?
Distributors' order-fill rates would be the most appropriate measure of customer service in this context because they directly reflect the percentage of customer orders that are fulfilled from available stock, indicating product availability. A high order-fill rate implies that customers can obtain products quickly without delays, enhancing customer satisfaction. Measuring the order-fill rate aligns with the strategic priorities of focusing on price and product availability.
Order-fulfillment lead times directly reflects the speed of order fulfillment, impacting how long a customer waits to receive their purchase.
Can any one explain this ?
Fill Rate = Orders Fulfilled/ Total Orders Customers order fill rate has direct relation with customer satisfaction.
Yes but maybe should be B, Order fullfillment and not distri?