Which of the following is NOT a component of the supply chain cost structure?

Enhance your strategic supply chain management skills with our comprehensive exam prep. Tackle challenging questions and deepen your understanding to excel in your exam!

The correct choice indicated, which identifies customer complaints as not being a component of the supply chain cost structure, is accurate because customer complaints are typically considered an outcome of the supply chain rather than a direct cost involved in the supply chain operations.

In a well-managed supply chain, organizations strive to minimize customer complaints as they can lead to additional costs related to handling returns, addressing service issues, and possibly losing future sales due to unsatisfied customers. However, these complaints themselves don't directly constitute a cost category like transportation costs, administrative expenses, or employee salaries do.

Transportation costs are a vital part of the supply chain, covering the expenses involved in moving goods from one location to another. Administrative expenses include costs associated with the management and operation of supply chain processes. Employee salaries are a direct labor cost tied to the workforce managing and executing supply chain activities. Each of these components directly contributes to the financial structure of a supply chain, while customer complaints represent disruptions or negative feedback rather than a defined cost structure element.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy