Percentage of orders shipped on schedule is a good measure of finished goods customer service if:
A) all orders and customers have similar cost impacts.
B) all orders and customers have similar value.
C) all orders and customers have similar backorder requirements.
D) later deliveries are not considered.
E) late deliveries contribute to the overall demand.

Question

Quizplus · Accepted Answer

The percentage of orders shipped on schedule is a good measure of finished goods customer service if all orders and customers have similar value. This ensures that the metric accurately reflects the service level across all orders, without bias towards higher or lower value orders.

Percentage of Orders Shipped on Schedule Is a Good Measure