In Navy logistics, cost per order primarily helps measure:

In Navy logistics, cost per order primarily helps measure:

• A. Operational effectiveness
• B. Financial efficiency of supply chains
• C. Delivery effectiveness
• D. Quality control measures

Answer: (B)

The correct answer is focused on the financial efficiency of supply chains, as cost per order is a crucial metric in determining how effectively resources are being allocated and used throughout the logistics process. This measure not only captures the direct costs of fulfilling an order but also provides insight into the overall financial health of supply chain operations. By analyzing the cost per order, Navy logistics can identify areas where spending can be optimized, waste can be reduced, and efficiency can be improved. This understanding is vital for ensuring that logistics operations remain within budget while still meeting the operational demands of the Navy. Using this metric effectively allows logistics personnel to make informed decisions regarding purchasing, inventory management, and other supply chain functions, ultimately leading to better budget management and financial performance.

The correct answer is focused on the financial efficiency of supply chains, as cost per order is a crucial metric in determining how effectively resources are being allocated and used throughout the logistics process. This measure not only captures the direct costs of fulfilling an order but also provides insight into the overall financial health of supply chain operations.

By analyzing the cost per order, Navy logistics can identify areas where spending can be optimized, waste can be reduced, and efficiency can be improved. This understanding is vital for ensuring that logistics operations remain within budget while still meeting the operational demands of the Navy.

Using this metric effectively allows logistics personnel to make informed decisions regarding purchasing, inventory management, and other supply chain functions, ultimately leading to better budget management and financial performance.