Which metric can indicate the cost-effectiveness of logistics operations in the Navy?

Which metric can indicate the cost-effectiveness of logistics operations in the Navy?

• A. Delivery reliability
• B. Fulfillment accuracy
• C. Cost per order
• D. Service quality

Answer: (C)

Cost per order is a key metric that provides insight into the cost-effectiveness of logistics operations in the Navy. This metric quantifies the total expenses associated with fulfilling an order, including procurement, transportation, handling, and storage costs. By analyzing the cost per order, logistics personnel can assess how efficiently resources are being utilized and identify areas where adjustments can be made to reduce expenses. A lower cost per order typically indicates a more effective logistics operation, as it suggests that the Navy can manage its logistical needs without overspending. In the context of the other options, while delivery reliability, fulfillment accuracy, and service quality are important in evaluating logistics performance, they do not directly measure the financial aspect. Delivery reliability pertains to how consistently orders are delivered on time, fulfillment accuracy evaluates the correctness of orders filled, and service quality relates to the overall satisfaction of the end-user. These factors contribute to the efficiency and effectiveness of logistics operations, but they do not provide a clear picture of cost management as cost per order does.

Cost per order is a key metric that provides insight into the cost-effectiveness of logistics operations in the Navy. This metric quantifies the total expenses associated with fulfilling an order, including procurement, transportation, handling, and storage costs. By analyzing the cost per order, logistics personnel can assess how efficiently resources are being utilized and identify areas where adjustments can be made to reduce expenses. A lower cost per order typically indicates a more effective logistics operation, as it suggests that the Navy can manage its logistical needs without overspending.

In the context of the other options, while delivery reliability, fulfillment accuracy, and service quality are important in evaluating logistics performance, they do not directly measure the financial aspect. Delivery reliability pertains to how consistently orders are delivered on time, fulfillment accuracy evaluates the correctness of orders filled, and service quality relates to the overall satisfaction of the end-user. These factors contribute to the efficiency and effectiveness of logistics operations, but they do not provide a clear picture of cost management as cost per order does.