APICS Certified Supply Chain Professional (CSCP) — Question 369

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

Answer options

• A. Process takt time
• B. Cycle count accuracy
• C. Number of inventory turns
• D. Number of first-tier suppliers

Correct answer: C

Explanation

The number of inventory turns is a crucial metric as it directly impacts cash flow and inventory management efficiency. Improving this metric means the company is effectively managing its stock, leading to better financial performance. The other options, while important, do not have as direct an impact on financial outcomes as inventory turns do.