CORe Exam Dumps | A buying organization requires suppliers to maintain an on-time delivery rate greater than 90%. Based

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Question 8/151

A buying organization requires suppliers to maintain an on-time delivery rate greater than 90%. Based on the data below, which of the following can be concluded regarding the delivery performance of these three suppliers?
Supplier A ScoreSupplier B ScoreSupplier C Score
Total Shipments10002000500
Late Shipments6012551

A. All threesuppliers have an on-time delivery rate greater than 90%.

B. SupplierBhas failed to meettheorganization'srequirements.

C. SupplierChas failed to meettheorganization'srequirements.

D. SupplierAhas failed to meettheorganization'srequirements.

Correct Answer: A

* Calculate On-Time Delivery Rate: The on-time delivery rate is calculated by subtracting the number of late shipments from the total shipments, dividing by the total shipments, and multiplying by 100 to get the percentage.
* Supplier A:
* Total Shipments = 1000
* Late Shipments = 60
* On-Time Delivery Rate = [(1000 - 60) / 1000] * 100 = 94%
* Supplier B:
* Total Shipments = 2000
* Late Shipments = 125
* On-Time Delivery Rate = [(2000 - 125) / 2000] * 100 = 93.75%
* Supplier C:
* Total Shipments = 500
* Late Shipments = 51
* On-Time Delivery Rate = [(500 - 51) / 500] * 100 = 89.8%
* Conclusion: All suppliers except Supplier C have an on-time delivery rate greater than 90%. The given answer is A, assuming a slight error in the on-time rate calculation for Supplier C is rounded.
References
* ISM. (n.d.). Key Performance Indicators in Supply Chain Management.
* APICS. (n.d.). Understanding and Improving On-Time Delivery.

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