Exam CSCP topic 1 question 68 discussion

The most appropriate indicator to use as a measure of supply chain utilization is A. Production equipment productivity. Explanation: Production equipment productivity: This metric directly measures how efficiently equipment is being used to produce goods, which is a key aspect of supply chain utilization. It focuses on maximizing output from existing resources. Why other options are not as suitable: Net asset turns: While this measures how efficiently a company uses its assets to generate revenue, it is a broader financial metric and doesn't specifically address the efficiency of the supply chain itself.

equipment efficiency means nothing if you're not selling through or TURNING what your assets are generating you

It should be B. It is more comprehensive measure of supply chain utilization than A.

utilization comes with capacity and assets. A is correct

According to our textbooks its says: Utilization is calculated by percentage of available time that the work center is actually being used" calculated by ( hours actually worked / available hours ) x 100%. So i still have no idea what the right answer is but i don't think its B.

According to our textbooks its says: Utilization is calculated by percentage of available time that the work center is actually being used" calculated by ( hours actually worked / available hours ) x 100%. So i still have no idea what the right answer is but i don't think its B.

it cannot be A as its only talking about production equipment.

I think it's A

It’s A

Not sure why answer is not A? or should A specifically represents the production utilization, not supply chain?