Percentage of Orders Shipped on Schedule Is a Good Measure

question 15

Multiple Choice

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.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

World Price

The price of a good that prevails in the global market for internationally traded goods.

Trade Restrictions

Measures imposed by governments to limit international trade for various reasons, including protecting domestic industries.

Domestic Supply

The total amount of a product or service that is available to consumers in a domestic market.