On-time delivery performance is calculated as follows:
A) Orders delivered on time/Total number of orders delivered
B) Orders delivered on time/Total sales dollars
C) Orders delivered on time/Total production
D) Orders delivered/Orders delivered on time

Question

Quizplus · Accepted Answer

On-time delivery performance is measured by the number of orders that are delivered on time divided by the total number of orders delivered. Option A represents this calculation. Option B relates the on-time delivery performance to total sales dollars which is not an accurate measure. Option C relates on-time delivery performance to total production which is not a direct measure of delivery performance. Option D is not a correct formula for calculating on-time delivery performance.

On-Time Delivery Performance Is Calculated as Follows