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Question 275 - CSCP discussion

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Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

A.
Diversity of sales channels
Answers
A.
Diversity of sales channels
B.
Lean manufacturing performance
Answers
B.
Lean manufacturing performance
C.
Time to market of new products
Answers
C.
Time to market of new products
D.
Velocity and return on assets (ROA)
Answers
D.
Velocity and return on assets (ROA)
Suggested answer: D

Explanation:

From a stockholder perspective, the most desirable measures of supply chain performance are those that directly impact the financial health and profitability of the company. Velocity refers to the speed at which inventory moves through the supply chain, which affects cash flow and efficiency. Return on assets (ROA) measures how effectively a company is using its assets to generate earnings. High velocity and strong ROA indicate that the company is efficiently managing its resources and generating profitable returns, which are key metrics for stockholders.

Coyle, J.J., Langley, C.J., Novack, R.A., & Gibson, B.J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

asked 16/09/2024
Dominique Reemer
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