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LOGISTIC OPERATIONS

Order processing, from the name itself, it implies the process of fulfilling the orders of the customers
either in a form of goods or services, it is very much important as others in the logistic operations as
failure in comprehending the importance of it could result in failure.
Capacity planning, in its logistic term, it refers to the process of balancing demand for a good or service
with the ability of a manufacturer or organization to produce enough to meet the demand. The goal here is
that if there is an effective capacity planning by a company this leads to an efficient and effective
operation of the company itself.
Throughput Time is the measure of a business flow rate. It is the time that is needed for a product to be
manufactured, from the receiving of the order from the customers until the completion of the production.
Order Cycle is the number of days required for a seller to use up a vendor’s supply to meet the supplier’s
target order requirement. It also tells the seller how much stock is used and needed before placing a
replenishment request. It is the entire process.
Customer Satisfaction is when the needs of the customer have been met by the business company,
normally achieving customer satisfaction is very important to logistic companies seeking competitive
advantages. Because they know that if they do not satisfaction from their customers it could lead to a non-
profitable business or even bankruptcy.

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