Certified in Logistics, Transportation and Distribution (CLTD) 2026 – 400 Free Practice Questions to Pass the Exam

The calculation of order fulfillment cycle time involves determining how long it takes to complete the entire process of fulfilling customer orders. This includes both the active time spent processing orders, known as process time, and the time products spend waiting before processing, referred to as dwell time.

By combining these two components—process time, which accounts for the actual active labor and operations performed to pick, pack, and ship an order, and dwell time, which reflects delays and waiting periods during the fulfillment process—you obtain a comprehensive measure of the order fulfillment cycle time. This method captures the total duration from when an order is received until it is completed and delivered, allowing organizations to identify areas for improvement within their order processing systems.

The other options presented require understanding of different logistical calculations. For example, while effective for assessing labor efficiency, the division of actual hours worked by available hours does not directly relate to order fulfillment time. Similarly, calculations involving annual usage, setup costs, carrying costs, and unit costs pertain to inventory management and cost analysis, not to the timing of order completion. The use of inventory and annualized cost of goods sold relates to inventory turnover rather than measuring the cycle time specifically associated with fulfilling customer orders.