Question

The item fill rate for an item that is shipped complete 6 times out of 10 orders, and ships 55 units out of the 100 requested in the 10 orders, is 60 percent.

a) true
b) false

Answer 1

The statement is false because the item fill rate is based on the quantity of items fulfilled (55 out of 100 units), which gives a 55 percent item fill rate, not 60 percent.

Step-by-step explanation:

The statement about the item fill rate being 60 percent is false because the item fill rate is calculated based on the proportion of the total quantity shipped to the total quantity ordered. In this case, 55 units were shipped out of the 100 requested units which gives an item fill rate of 55 percent, not 60 percent.

The fill rate is not solely based on the number of complete shipments, which, in this scenario, is 6 out of 10 orders, but also on the actual quantity of units fulfilled.

The item fill rate is calculated by dividing the number of items shipped by the number of items requested. In this case, the item fill rate is calculated by dividing 55 units by 100 units, which equals 0.55 or 55%. Therefore, the statement that the item fill rate is 60 percent is false.