Q: 19
A company would like to benchmark its inventory levels against other companies. Which of the
following metrics is best to use for this purpose?
Options
Discussion
D , seen similar on an exam report.
Probably B, since days of supply directly compares inventory levels. C is a trap here because it's more about asset efficiency.
D
Its B here, but only if every company counts "days of supply" using similar demand data. Some orgs calculate it differently, so benchmarking accuracy can get messy. I think B still fits best overall though, anyone disagree?
Quick question: does the company want to benchmark just raw inventory quantity or how fast inventory is turning over? If they're comparing how many days inventory lasts, then B makes sense, but if it's about efficiency or utilization, C might be relevant.
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