Certified Supply Chain Professional (CSCP) Practice Exam

What does monetary value fill rate measure?

1. Percentage of total unit cost versus production cost

2. Percentage of monetary value delivered versus monetary value ordered

3. Percentage of total sales revenue versus cost of goods sold

4. Percentage of profits retained after costs

The correct answer is: Percentage of monetary value delivered versus monetary value ordered

Monetary value fill rate is a key performance metric used to evaluate the effectiveness of order fulfillment in a supply chain context. It specifically measures the percentage of the monetary value of goods that are delivered to customers against the total monetary value of goods that were ordered. This metric is important because it provides insights into the service level offered to customers by reflecting how well the supply chain is meeting demand in terms of dollar value. By focusing on monetary values rather than just unit quantities, companies can assess not only how much product is being delivered but also the importance or value of those products to the customer. A high monetary value fill rate indicates that customers are receiving the high-value items they ordered, which can impact customer satisfaction and retention positively. Other options do measure important aspects of supply chain performance but do not accurately describe what monetary value fill rate entails. For instance, the first option speaks to cost comparisons, which are not directly related to the concept of fill rates. The third option refers to sales revenue in relation to cost of goods sold, which pertains more to profitability analysis than fulfillment performance. Similarly, the fourth option addresses profitability retention rather than the fulfillment of orders. Thus, option B correctly captures the essence of what the monetary value fill rate evaluates.