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Question 156

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

    Correct Answer: C

    The number of inventory turns is a key metric that measures how quickly a company is able to sell and replace its inventory. By increasing the number of inventory turns, a company can ensure faster inventory turnover, reduce holding costs, and improve cash flow. This directly impacts the financial performance of the supply chain by optimizing asset utilization and reducing excess inventory costs.

Discussion
Rajiv8047Option: C

The number of inventory turns is a key metric that measures how quickly a company is able to sell and replace its inventory. By increasing the number of inventory turns, a company can ensure faster inventory turnover, reduce holding costs, and improve cash flow.