Which of the following metrics is the most appropriate to use in order to measure the total end-to-end supply chain cost in fulfilling an order?
Which of the following metrics is the most appropriate to use in order to measure the total end-to-end supply chain cost in fulfilling an order?
A . Cash-to-cash cycle time
B . Order fulfillment cost
C . Return on assets
D . Total cost to serve
Answer: D
Explanation:
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Total cost to serve is a supply chain metric that measures the total end-to-end supply chain cost of fulfilling an order for a specific customer or segment1. It includes all the costs incurred from sourcing, manufacturing, warehousing, transportation, and delivery of the product or service2. Total cost to serve helps to identify the profitability and value of different customers or segments, and to optimize the supply chain processes and resources accordingly3.
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