APICS Certified Supply Chain Professional (CSCP) — Question 403

Which of the following metrics is the most appropriate measure of supply chain asset efficiency?

Answer options

• A. Return on equity
• B. Net present value (NPV)
• C. Cash-to-cash cycle time
• D. Upside flexibility

Correct answer: C

Explanation

The correct answer is C, Cash-to-cash cycle time, as it directly measures the time taken between outlaying cash for raw material and receiving cash from product sales, thus indicating asset efficiency in the supply chain. Options A and B focus on financial returns and valuation rather than operational efficiency, while D, Upside flexibility, refers to the ability to respond to demand changes, not directly measuring asset efficiency.