Unit Fill Rate (UFR)

The unit fill rate (UFR) for an item is the portion of the total number of units...


Warehouse Occupancy Percentage

Optimal storage utilization helps enforce healthy inventory management. In our early work with Honda their...


Efficient Procurement Inventory

Efficient procurement inventory (EPI) is often required to realize steep discounts when a special opportunity...


Inventory Activity Profiling & Data Mining

Suppose you were sick and went to the doctor for a diagnosis and prescription.  When...


Inventory Performance Measures

Inventory performance measures include financial, productivity , quality, and response time indicators for evaluating the efficiency and...

Customer Service Response Time Metrics

The two key customer service response time metrics are order entry time (OET) and order processing time (OPT).

Order entry time (OET) is the elapsed time from order placement until completed order entry and capture for processing.  For orders received by mail, the order  entry time includes in-transit time (ITT), waiting time for order entry, and order entry time.  For orders received by fax, the order entry time includes fax transmission time, waiting time for order entry, and the keying and/or scanning time for order entry.  For orders received by phone, the order entry time includes the waiting time for the customer, the conversation time, and the keying time for the order entry specialist.  For orders received electronically, the order entry time is reduced to the transmission time for the order.  A typical range of order entry times by order type is provided below.


Typical Range of Order Entry Times


The order processing time clock starts when the order is entered in and captured by the order processing system and stops when the order is released to the warehouse (or factory) for picking.  The order processing time includes the time to verify customer information, verify for credit clearance, batch for schedule for release, and dwell for release to the warehouse for assembly.

Leave a Reply

Your email address will not be published. Required fields are marked *