Which of the following factors is the most appropriate measure of delivery performance for finished...

Perfect order fulfillment is the most appropriate measure of delivery performance for finished goods because it encompasses several key aspects of delivery performance, including:

Comprehensive Metric: Perfect order fulfillment measures not just on-time delivery, but also order completeness, accuracy, and condition. It provides a holistic view of how well the supply chain is meeting customer expectations.

Customer Satisfaction: This metric directly impacts customer satisfaction since it reflects the ability to deliver the correct products, in the correct quantities, at the correct time, and in acceptable condition.

Higher Standards: It sets a higher standard for delivery performance than just on-time delivery, as it requires excellence in multiple areas of order fulfillment.

Performance Improvement: By focusing on perfect order fulfillment, companies can identify and address various issues in their supply chain processes, leading to overall performance improvement.

On-time delivery (Option B) is important but only one component of the broader perfect order fulfillment metric. Load efficiency (Option C) relates more to transportation efficiency rather than customer delivery performance. Available-to-promise (Option D) is a planning tool to communicate delivery capabilities but does not measure actual delivery performance.

References

"Supply Chain Metrics that Matter" by Lora M. Cecere.

"Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl.