What captures the essence of supply chain objectives regarding throughput and value added?

Question

Quizplus · Accepted Answer

Throughput in supply chain refers to the rate of converting raw materials into finished products and delivering them to customers. Inventory turns, which is the number of times inventory is sold and replaced in a given period, is a metric used to measure throughput. Value added, on the other hand, refers to the increase in worth or usefulness of an item as a result of a particular activity or process. By increasing inventory turns, a supply chain can increase throughput and therefore, value added. Therefore, both turnover (throughput) and inventory turns are key objectives in supply chain management.

What Captures the Essence of Supply Chain Objectives Regarding Throughput