Supplier reliability

Every plan assumes the supplier delivers on time. Check two things: the share of orders that arrived on time, and how far the real lead time is from the promise.

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About 5–10 minutes · no sign-up needed

The idea

Every plan assumes the supplier delivers on time. Check two things: the share of orders that arrived on time, and how far the real lead time is from the promise:

Formulas

On time ÷ Orders × 100

Key points

On-time delivery %Orders on time ÷ Total orders × 100. Often called OTD.

Lead time gapActual lead time − Promised lead time.

Use itPlan with the actual lead time, and hold more safety stock for unreliable suppliers.

An unreliable supplier quietly breaks every reorder point that depends on them.

Practice

Try each one in your head first, then open the answer.

1. In D3, work out Delta Power's on-time delivery %, as a decimal.

=C3/B3

2. Tap the least reliable supplier.

Nordic Mounts: 60% on time, and 1.5 weeks late on average.

3. Delta Power's product sells 250 a week. The plan used a 3-week lead time, but it really takes 4.2. How much extra stock covers the difference?

(4.2 − 3) × 250 = 300 units

4. Which visual compares on-time delivery % across the four suppliers?

Bar chart

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →

About 5–10 minutes · no sign-up needed