APICS Certified Supply Chain Professional (CSCP) — Question 94

A company would like to benchmark its inventory levels against other companies. Which of the following metrics is best to use for this purpose?

Answer options

• A. Fill rate
• B. Days of supply
• C. Net asset turns
• D. Cash-to-cash cycle time

Correct answer: D

Explanation

The Cash-to-cash cycle time metric is ideal for benchmarking inventory levels as it measures the time taken to convert inventory into cash. In contrast, Fill rate and Days of supply focus on inventory performance rather than comparative benchmarking, while Net asset turns evaluates overall asset efficiency rather than specifically inventory management.