In supply chain management, what does the order fulfillment rate measure?

The order fulfillment rate is a key metric in supply chain management that specifically measures the efficiency and effectiveness of the order processing system. It calculates the percentage of customer orders that are shipped on time relative to the total number of orders received. This metric is crucial for businesses as it directly influences customer satisfaction and retention. A high order fulfillment rate indicates that the company is reliably meeting customer expectations for timely delivery, which can enhance trust and loyalty.

In contrast, the other options focus on different aspects of supply chain management. The average size of an order pertains to purchasing and inventory management, rather than the fulfillment process. The number of suppliers relates to supplier management and sourcing strategies, and the rate at which new products are developed is tied to product lifecycle management and innovation rather than order fulfillment. Therefore, option A accurately describes the purpose of the order fulfillment rate.