Certified Supply Chain Professional (CSCP) Practice Exam

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How is customer service ratio (fill rate) defined?

The percentage of products returned by customers
The measure of delivery performance of finished goods expressed as a percentage
The total number of orders fulfilled
The percentage of customer complaints resolved

The correct answer is: The measure of delivery performance of finished goods expressed as a percentage

The customer service ratio, often referred to as fill rate, represents the measure of a company's ability to fulfill customer demand for finished goods. It is calculated as the percentage of customer orders that are shipped complete and on time compared to the total number of orders placed. This metric is crucial for assessing delivery performance because it reflects how well a company can meet customer expectations regarding product availability and timely delivery. A high fill rate indicates that a company is efficiently managing its inventory and logistics to meet customer demand, thereby enhancing customer satisfaction and loyalty. In this context, defining fill rate emphasizes its role in evaluating performance rather than aspects of customer complaints or returns. The focus on delivery performance aligns with supply chain objectives, as it helps organizations identify areas for improvement in order fulfillment processes. Thus, the definition as a percentage of delivery performance is an accurate reflection of what fill rate is intended to measure.