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?

Question

Quizplus · Accepted Answer

Number of inventory turns is the most relevant metric to focus on when improving financial performance in the supply chain. It measures how many times inventory is sold and replaced in a given period, indicating the efficiency of the supply chain in managing inventory levels and avoiding excess inventory costs. Process takt time, cycle count accuracy, and number of first-tier suppliers are also important metrics, but they may not have as direct an impact on financial performance as inventory turns.

A Company Is Aggressively Pursuing Improvements in the Financial Performance