Which one of the following statements about the relation between financial and supply chain performance measures is TRUE?

Question

Quizplus · Accepted Answer

Longer delivery times mean that products are idle in transit for a longer period, leading to a higher level of inventory. This, in turn, requires higher levels of working capital to finance the inventory. So, A is correct. B is false because the shorter the new product development time, the quicker revenue can be generated from the sale of the product. C is false because higher inventory turns indicate that inventory is sold quickly, reducing the need for working capital. D is false because a lower aggregate inventory value generally means lower current assets, as working capital is tied up in inventory.

Which One of the Following Statements About the Relation Between