Komoro Foods Inc. has decided to track its "On Time and In Full percentages as a critical metric to know whether the distribution center is doing its job well.

1) Are there any factors that can affect the metric that escapes the scope of the distribution manager's responsibilities (jurisdiction)?

2) With the input from a cross-functional team, they are now considering four possibilities to track the metric: a) As a percentage of orders delivered on time and in full; b) as a percentage of line items delivered on time and in full; c) as a percentage of units (cases) delivered on time and in full; d) as a percentage of dollar value delivered on time and in full. The following is an example of the proposed metrics using Komoro's last month's data:

3) Which Metrics would you use? Why?

 

Total orders 1,350.0 Number of orders OTIF 1,023.0 a) OTIF% 76% Total Line items 48,674.0 Number of Line items OTIF 46,096.0 b) OTIF% 95% Total Number of cases 2,725,788.0 Number of cases OTIF 2,407,254.0 c) OTIF% 88% Total dollar value ordered $62,693,102 Total dollar value delivered OTIF $58,956,478 d) OTIF% 94%