Order Cycle Time

Four factors in this case contributes to the order cycle time. There is the corporate culture which is among the core factors, capacity management factor, and measurement of wrong parameters factors and finally too many non-values added activities in course of the order cycle time. During the out-of stock situation, these factors actually differ on regular distribution channels present in normal work conditions, (Kildow, 2011).

In order cycle time, when the company is out of stock, there are less activities that come in between the time an order is ordered and the time is delivered. Orders in this situation are distributed using the backup channel simply because all the activities which contribute to more than 90% of the consumed time are reduced. There is no paperwork during the out-stock situations simply because orders are known on how they are required to be distributed thus reducing large queues which make the work tedious and consume most of the time. In respect to wrong parameters used to make measurements, during out-stock situation, orders are just filled in a regular distribution channel simply because those instances that need to be measured reduces for the company has less to provide to the customers for that case, (Ballou, 2004).

Corporate culture is among the things that brings distinctions during out-stocked period. Consider the employees altitude on how they are supposed to work and how they have been working. This forces orders to be filled through the backup channel simply because the situation is less appropriate for the employees. Capacity management factor has less impact on how orders are filled. Since it’s a stock-out situation the management just refuses to accept orders that are made by customers, (Kildow, 2011).

Reference:

Ballou, R. H. (2004). Business logistics/supply chain management: planning,       organizing, and controlling the supply chain: Pearson Prentice Hall

Kildow, B. A. (2011). A Supply Chain Management Guide to Business Continuity:        AMACOM Div American Mgmt Assn

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