A manufacturer received 1,000 orders in a week and could not fulfill 100 of these orders due to stockout. What is the perfect order-fulfillment percentage?
The perfect order-fulfillment percentage is 90%.
To calculate the perfect order-fulfillment percentage, you subtract the number of unfulfilled orders from the total orders and then divide by the total orders, multiplying by 100. In this case, the manufacturer fulfilled 900 out of 1,000 orders, leading to a fulfillment percentage of 90%.
A fulfillment percentage of 25% would imply that only 250 orders were fulfilled out of 1,000, which is incorrect. Given that 100 orders were not fulfilled, this percentage does not accurately reflect the situation where 900 orders were successfully completed.
A fulfillment percentage of 50% suggests that 500 orders were fulfilled. This is also inaccurate since it does not account for the 900 successful orders out of 1,000 total orders. The calculation does not match the actual fulfillment scenario.
This is the correct answer. With 1,000 total orders and 100 unfulfilled, the number of fulfilled orders is 1,000 - 100 = 900. The fulfillment percentage is thus (900 / 1,000) * 100 = 90%, indicating a high level of order fulfillment.
A fulfillment percentage of 10% would imply that only 100 orders were fulfilled, which is incorrect given the actual fulfillment of 900 orders. This percentage fails to represent the true performance of the manufacturer during the week.
The perfect order-fulfillment percentage is a crucial metric for assessing a manufacturer's ability to meet customer demand. In this scenario, with 900 out of 1,000 orders fulfilled, achieving a percentage of 90% signifies a strong performance, while the other options misrepresent the actual fulfillment capabilities of the manufacturer. Understanding this metric helps businesses evaluate their operational efficiency and customer satisfaction levels.
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