An example of an effectiveness-oriented metric of supply management performance:
A)measures direct and indirect contributions to final customer satisfaction.
B)calculates operating cost as a percentage of total dollar volume of purchases.
C)calculates the average dollar cost of a purchase order.
D)calculates operating cost as a percentage of sales.
E)measures price reductions from the previous contract.

Question

Quizplus · Accepted Answer

This metric directly measures the impact that supply management has on the end customer, which is the ultimate goal of the supply chain.

An Example of an Effectiveness-Oriented Metric of Supply Management Performance