INTE Exam Dumps : Supply Management Integration

The fill rate refers to the percentage of customer order requirements met directly from stock on hand. It measures the effectiveness of inventory management in fulfilling customer demand without delays, thus indicating the availability of products on the shelf.

Standardization ensures that products meet uniform quality standards, reducing variability and enhancing customer satisfaction. This advantage is vital in maintaining brand reputation and streamlining production processes.

In a highly competitive market like office supplies, the most critical cost associated with shortag-es is typically lost sales. If PQR, Inc. experiences shipping delays and cannot maintain continuous inventory, customers are likely to turn to competitors to meet their needs. This can result in im-mediate lost sales and potentially long-term loss of customer loyalty. The cost of lost sales often outweighs other costs like idle workers or production downtime because it directly affects revenue and market share. References:

•Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

•Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.