Which of the following is a critical measure of warehouse performance?

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Prepare for the CDC 2S051 Volume 4 – Warehouse Operations and Systems Test. Study using flashcards and dynamic multiple choice questions offering detailed explanations. Excel in your exam!

Return on investment (ROI) is a critical measure of warehouse performance because it quantifies the profitability and efficiency of the warehouse operations relative to the costs incurred. A positive ROI indicates that the warehouse is generating more revenue than the expenses associated with its operations, which is essential for any business's sustainability and growth. Evaluating ROI allows management to make informed decisions about resource allocation, process improvements, and overall operational strategies.

In contrast, while employee feedback can provide valuable insights into workplace morale and potential areas for improvement, it does not directly measure the effectiveness of warehouse operations in financial terms. Warehouse aesthetic appeal, although important for creating a pleasant work environment and possibly enhancing customer perceptions, is not a primary driver of operational success. The duration of employee breaks, while relevant for labor management and employee well-being, does not inherently affect the performance metrics that drive warehouse productivity and financial outcomes.

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