What is order fulfillment in supply chain terms?

• A. Forecasting demand for next quarter.
• B. Receiving, processing, and delivering an order to the customer.
• C. Negotiating supplier contracts.
• D. Setting pricing for products.

Answer: (B)

Order fulfillment is the execution step in the supply chain where a customer's order is turned into a delivered product. It covers receiving the order, checking that the items are in stock, picking the right products from inventory, packing and labeling them correctly, and shipping them to the customer with delivery confirmation. The aim is accuracy and timeliness, coordinating warehousing, inventory, logistics, and customer communication throughout the process. Other options describe planning or pricing activities—forecasting demand predicts future sales, negotiating supplier contracts is sourcing, and setting pricing is about pricing strategy—areas that set up or influence the process rather than carrying out the actual delivery.