Which of the following statements is true regarding the leverage of supply chain savings?
A)Supply chain leverage is about the same for all industries.
B)Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales.
C)Supply chain savings exert more leverage as the firm's net profit margin decreases.
D)Supply chain leverage depends only upon the percent of sales spent in the supply chain.
E)None of the above is true.

Question

Quizplus · Accepted Answer

Supply chain savings exert more leverage as the firm's net profit margin decreases because the savings have a more significant impact on the bottom line when profit margins are thin.

Which of the Following Statements Is True Regarding the Leverage