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A warehouse has 20,000 orders per year with an average of 10 line items per order. The warehouse experiences 800 backorders per year averaging 5 line items per backorder. What level of customer service is achieved when the percentage of line items shipped on schedule is used?
Suggested Answer: C
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26 comments · newest first
LI
Lili
9 months ago
99%? Really? That sounds too high!
AS
Ashton
9 months ago
Wait, how do backorders affect the percentage?
JO
Johanna
10 months ago
That's about 200,000 line items total!
ER
Erick
10 months ago
96% seems low for that volume.
DE
Devon
10 months ago
I think it’s closer to 98%.
GA
Gail
11 months ago
I feel like I should be able to get this, but I keep mixing up the definitions of service level and fill rate. I hope I remember the right approach!
NI
Nickolas
11 months ago
I think the formula involves total line items and backorders, but I can't quite recall the exact numbers we need to use.
NA
Nadine
11 months ago
This question seems similar to one we practiced where we had to find the percentage of items shipped on time. I think I might lean towards option C or D.
DA
Daren
11 months ago
I remember we calculated service levels in class, but I'm not sure how to apply it to backorders specifically.
PA
Patria
11 months ago
Okay, I think I've got this. I'll calculate the total line items, subtract the backorder line items, and then divide the on-schedule line items by the total to get the percentage. I just need to be careful with the math and units.
CA
Carmen
12 months ago
This seems pretty straightforward. I'll just need to do the math to find the total line items, the line items shipped on schedule, and then calculate the percentage. I'm confident I can work through this step-by-step.
GL
Glendora
12 months ago
Hmm, I'm a little unsure about how to approach this. I think I need to find the total number of line items and then subtract the number of backorder line items to get the number shipped on schedule. But I'm not sure how to calculate the percentage from there.
CA
Carolann
12 months ago
Okay, let me think this through step-by-step. First, I need to calculate the total number of line items. Then I can figure out how many were shipped on schedule and calculate the percentage.
AN
Antonette
1 year ago
This looks like a straightforward calculation problem. I'll need to figure out the total number of line items and the number of line items shipped on schedule.
EV
Evangelina
1 year ago
Hmm, 97% seems reasonable, but I wonder if they could do better. It's all about meeting those customer expectations, am I right?
RE
Regenia
9 months ago
Customer expectations are high, so 97% might not cut it.
GA
Gail
9 months ago
96% seems low for a good service level.
HU
Hubert
10 months ago
99% would be ideal, but tough to achieve.
RA
Rashida
10 months ago
I think 98% is more realistic.
EM
Emiko
1 year ago
I'm not sure, but I think the answer might be D) 99% because that would mean almost all orders are shipped on time.
PA
Paris
1 year ago
I agree with Kasandra, because achieving a 98% on-time shipment rate is considered a high level of customer service.
KA
Kasandra
1 year ago
I think the answer is C) 98%
ER
Eric
1 year ago
96%? That's a bit low, don't you think? I'd expect a better level of customer service from a well-run warehouse.
AR
Arleen
1 year ago
C: Yeah, a higher level of customer service would definitely be better.
JO
Joseph
1 year ago
B: Maybe we should aim for a higher percentage like 98% or 99%.
AS
Ashton
1 year ago
A: I agree, 96% seems a bit low for customer service.