Answered Essay: Two common measures to evaluate supply chain efficiency are the inventory turnover

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios. True False

Expert Answer

Answerb. False

The supply chain of the firms dealing with parts movement is an important aspect to be considered and its performance depends on the supply chain efficiency. Here, the supply chain efficiency can be simply measured as ratio of output performance to the inputs.

There are several parameters such as order fulfillment/service level, space utilization, etc can be used a proxy for measuring the supply chain efficiency as well, Having said that, inventory turnover and weeks of supply cannot be used to evaluate supply chain efficiency as inventory turnover is measure of the quickness of inventory movement, ie., number of times inventory is sold in a specific time period such as a year and Weeks of Supply (WOS) is an inventory measure based on average sales.

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