Q: 9
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?
Options
Discussion
Option B
B. saw something just like this in a recent practice exam and net asset turnover was the metric they wanted for supply chain utilization. No doubts for me here unless the question context changes.
B . A traps you into thinking about just equipment, but net asset turnover is the actual supply chain utilization metric for the whole picture. Got this on a similar practice set.
Makes sense to pick B here. Net asset turnover gives a big-picture view of how well the whole supply chain is using its assets, which is what most textbooks push. Official guide and some practice exams emphasize this metric for utilization, but if anyone's got a better resource that disagrees, let me know.
B . Net asset turnover is broader and tracks the whole supply chain's ability to generate revenue using its assets. Always see it referenced in supply chain utilization questions. Correct me if I'm missing something obvious.
B
A
Probably B for this one. Net asset turnover looks at overall asset efficiency across the supply chain, not just a piece like machinery or labor. A is too narrow, C focuses only on employees, and D measures flexibility not utilization. Pretty sure B is right but open to other views if I'm missing something.
Is the question specifically asking for an indicator at the company-wide level, or could a process-level metric also be valid? The official guide sometimes distinguishes depending on scope, which might shift the best answer.
Remember getting a nearly identical question in my practice set, B was the right call there too.
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