Examples of Metrics for Supply Chain Performance Are Logistics Costs,percentage

question 89

True/False

Examples of metrics for supply chain performance are logistics costs,percentage of on-time delivery,and item fill rate.

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Definitions:

Price to Clear

The market price at which the quantity supplied of a good matches the quantity demanded, leading to an equilibrium where there is no surplus or shortage.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Profit-maximizing Output

The production level where maximum profit is achieved by a company, when the marginal cost matches the marginal revenue.

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.