_____ of inventory refers to how quickly raw material and work-in-process inventory transform into finished goods that the customer accepts.
A) Volume
B) Velocity
C) Value
D) Vigor
E) None of the above.

Question

Quizplus · Accepted Answer

Velocity refers to the speed at which inventory is transformed into finished goods that are accepted by customers. This is an important measure of supply chain efficiency and is typically measured using metrics such as cycle time, lead time, and throughput. A high velocity of inventory turnover helps companies to reduce costs, improve customer satisfaction, and respond quickly to changes in demand.

_____ of Inventory Refers to How Quickly Raw Material and Work-In-Process