APICS Certified Supply Chain Professional (CSCP) — Question 222

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Answer options

• A. Production equipment productivity
• B. Net asset turns
• C. Value-added productivity per employee
• D. Upside flexibility

Correct answer: B

Explanation

Net asset turns is the most appropriate measure for evaluating supply chain utilization as it reflects how effectively a company is using its assets to generate revenue. The other options, while related to productivity, do not specifically indicate utilization of the supply chain. For instance, production equipment productivity focuses on machinery efficiency, which is a narrower aspect.