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.
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.
Not sure why answer is not A? or should A specifically represents the production utilization, not supply chain?
upvoted 2 times
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