An efficient supply chain typically has:
A) a high capacity cushion.
B) high inventory turns.
C) supply chain partners that emphasize fast high quality.
D) supply chain partners that emphasize volume flexibility.

Question

Quizplus · Accepted Answer

High inventory turns indicate that the supply chain is able to quickly move products through the system, reducing the amount of inventory that needs to be held at any point in time. This can lead to cost savings and a more efficient supply chain overall. A high capacity cushion (A) may indicate excess capacity and potentially wasted resources. Supply chain partners that emphasize fast high quality (C) and volume flexibility (D) can also contribute to efficiency, but high inventory turns are a more direct and measurable indicator of supply chain efficiency.

An Efficient Supply Chain Typically Has