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Question 82 - CSCP discussion

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Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

A.
Production equipment productivity
Answers
A.
Production equipment productivity
B.
Net asset turnover
Answers
B.
Net asset turnover
C.
Value-added productivity per employee
Answers
C.
Value-added productivity per employee
D.
Upside flexibility
Answers
D.
Upside flexibility
Suggested answer:

Explanation:

Context: Measuring supply chain utilization involves understanding how effectively resources are used in the supply chain.Options Breakdown:A . Production equipment productivity: This measures the efficiency of production equipment but not overall supply chain utilization.B . Net asset turnover: This ratio measures how efficiently a company uses its assets to generate sales, reflecting overall supply chain utilization.C . Value-added productivity per employee: This focuses on employee productivity rather than supply chain utilization.D . Upside flexibility: This measures the ability to increase production when needed but does not reflect utilization.Answer: Justification: Net asset turnover is an appropriate indicator of supply chain utilization as it reflects the efficiency of asset use in generating revenue.Financial performance metrics in supply chain managementTextbooks on supply chain efficiency and utilization

asked 16/09/2024
Sathish M
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