Asked by Celeste Machado on Jul 07, 2024
Verified
Which of the following formulas is used to calculate the Perfect Delivery Index, a common transportation metric?
A) Total on-time deliveries / Total deliveries
B) Total units damaged, lost, or stolen / Total units shipped
C) Shortage % ´ Damage-free % ´ Billing accuracy %
D) On-time % ´ Damage-free % ´ Billing accuracy %
Perfect Delivery Index
A performance metric that measures the rate at which delivered items meet the criteria of being on time, complete, and undamaged.
Billing Accuracy
Refers to the degree to which bills accurately reflect the services or goods provided, without errors or discrepancies.
- Understand the importance of transportation within the framework of supply chain design and its impact on cost management.
Verified Answer
KN
kristen nguyenJul 08, 2024
Final Answer :
D
Explanation :
The Perfect Delivery Index is a comprehensive transportation metric that measures the percentage of shipments that are delivered on time, undamaged, and with accurate billing. The formula used to calculate this metric is On-time % x Damage-free % x Billing accuracy %. Therefore, the correct answer is D.
Learning Objectives
- Understand the importance of transportation within the framework of supply chain design and its impact on cost management.
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