Certified Supply Chain Professional (CSCP) Practice Exam

Which factor does dwell time indicate in the order processing cycle?

1. The time an order spends in inventory

2. The time an order waits between stages of processing

3. The overall delivery time from start to finish

4. The time taken for order reviews and approvals

The correct answer is: The time an order waits between stages of processing

Dwell time specifically refers to the amount of time an order waits at a specific stage in the processing cycle before moving on to the next step. This includes any delays that occur while the order is in transit between processing phases, whether it's waiting for materials, resources, or approvals necessary for the subsequent actions. Understanding dwell time is crucial as it highlights inefficiencies in the order processing workflow. Identifying where excessive dwell time occurs can lead to improvements, such as streamlining processes or reallocating resources, thereby enhancing the overall efficiency of the supply chain. The other options relate to different aspects of the order processing cycle. For example, the time an order spends in inventory indicates holding costs and inventory management efficacy, the overall delivery time from start to finish encompasses all phases of order fulfillment, and the time taken for order reviews and approvals pertains to specific check points. Each of these factors plays a distinct role in supply chain management, but dwell time specifically captures the waiting period between the various stages of processing.