Which metrics are essential for evaluating warehouse performance?

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Study for the CDC 2S051 Volume 4 – Warehouse Operations and Systems Test. Use flashcards and multiple choice questions, with hints and explanations for each query. Be exam ready!

The correct response emphasizes key performance indicators that are directly tied to the operational efficiency and effectiveness of warehouse operations. Order accuracy measures how correctly orders are fulfilled, which is crucial for customer satisfaction and operational success. High order accuracy reduces returns and enhances overall service levels.

Inventory turnover reflects how effectively inventory is managed, showing how often the inventory is sold and replaced over a specific period. A higher turnover rate typically indicates efficient inventory management and effective stocking strategies, which can lead to reduced holding costs and less risk of obsolescence.

Fulfillment cycle time, which tracks the time taken from receiving an order to the order being shipped, is vital for assessing how well a warehouse meets time-sensitive demands. Reducing fulfillment cycle time can significantly improve customer satisfaction and operational throughput.

These metrics collectively provide a comprehensive view of warehouse performance, focusing on elements that drive customer satisfaction and operational efficiency. In contrast, the other options, while they may include valuable metrics, do not concentrate on the core operational aspects that directly impact warehouse performance as effectively as the metrics listed in the correct choice.

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