Which of the Following Metrics Is the Most Appropriate Measure

question 170

Multiple Choice

Which of the following metrics is the most appropriate measure of supply chain responsiveness?

• A) Order fulfillment lead times
• B) Percentage of orders delivered on time
• C) Retail inventory days of supply
• D) Upside production flexibility

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Definitions:

Direct Costs

Expenses that can be directly traced to the production of specific goods or services.

Indirect Costs

Expenses that are not directly tied to the production of goods or services, such as overhead, administration, and salaries.

Salespersons' Salaries

Fixed or variable payments made to sales staff as compensation for their services, typically involving a base salary and possibly commissions.

Direct Costs

Costs that can be directly traced to a specific product, project, or activity without any ambiguity.