The Goal of Supply Chain Management (SCM)is to Reduce Operating

question 30

True/False

The goal of supply chain management (SCM)is to reduce operating and inventory costs while meeting delivery objectives and increasing profits.

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Definitions:

Contribution Margin

The gap between sales income and variable expenses, showing the extent to which income aids in offsetting fixed expenses and creating earnings.

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Volume

The total quantity of products or services sold by a company during a specific period of time.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.