Asked by Akadiri Olalekan on May 22, 2024

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Efficiency metrics,which emphasize price,may lead to behavior that drives up total cost of ownership.

Efficiency Metrics

Quantitative tools used to assess the productivity and performance of a system or process, focusing on maximizing outputs with minimal inputs.

Total Cost

The complete amount of money required to produce goods or services, including fixed and variable costs.

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/real estate, intellectual property, or some other kind of property.

  • Acquire knowledge on the focal points of supply management research to boost process efficiency.
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BY
BCOB18_ Yash ChoudharyMay 24, 2024
Final Answer :
True
Explanation :
Efficiency metrics that focus solely on price may encourage behaviors such as using low-quality materials, skipping necessary maintenance or cutting corners on safety measures to reduce immediate costs, leading to increased costs in the long run. This is often referred to as the "paradox of efficiency." Therefore, while price is an important factor to consider, it should not be the sole metric for measuring efficiency.