Order Cycle Time (OCT) Is Another Very Important Logistics Service

question 25

True/False

Order cycle time (OCT) is another very important logistics service metric. OCT influences product availability, customer inventories, and seller's cash flow and profit.

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Definitions:

Accumulate

To gather or collect, often a gradual increase of items or value over time.

Invest

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Compounded Annually

Involves the process where interest is added to the principal sum at the end of each year, for the purpose of calculating the next year's interest.

Annual Payments

Regular payments made once a year.