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Question 380 - CSCP discussion

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Which of the following supply chain areas utilize order management cost metrics?

A.
Distribution
Answers
A.
Distribution
B.
Inspection
Answers
B.
Inspection
C.
inbound freight
Answers
C.
inbound freight
D.
Commodity management
Answers
D.
Commodity management
Suggested answer: A

Explanation:

Order management cost metrics are used to measure the efficiency and effectiveness of order processing and fulfillment activities. These metrics often include costs related to order entry, order processing, order picking, packing, and shipping, and customer delivery. Distribution is a key area in the supply chain where these metrics are crucial, as it involves the actual handling and movement of goods from the manufacturer to the end customer. This includes warehousing, inventory management, transportation, and delivery activities. Tracking these costs helps organizations optimize their distribution processes and reduce operational expenses.

Reference:

APICS Dictionary

'Logistics & Supply Chain Management' by Martin Christopher

asked 16/09/2024
Akshi Raj
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