Which aspect does "turnaround time" not typically include in its calculation?

Which aspect does "turnaround time" not typically include in its calculation?

• A. Receiving goods into stock
• B. Shipping goods to customers
• C. Processing orders for quality checks
• D. Handling customer returns

Answer: (D)

Turnaround time is primarily focused on the efficiency of the processes that involve the movement and management of inventory within a logistics or supply chain operation. It typically includes the time taken for receiving goods into stock, shipping goods to customers, and processing orders, which may include necessary quality checks to ensure that the products being sent meet the required standards. Handling customer returns, while an important aspect of inventory management, is generally not included in the calculation of turnaround time. Instead, it is often considered a separate process, as it deals with post-sale activities rather than the initial flow of goods through the supply chain. This distinction is important because turnaround time aims to measure the time from the point goods are ordered until they are delivered to the customer or shelf-ready, whereas returns involve different operational metrics that may focus on customer service or satisfaction.

Turnaround time is primarily focused on the efficiency of the processes that involve the movement and management of inventory within a logistics or supply chain operation. It typically includes the time taken for receiving goods into stock, shipping goods to customers, and processing orders, which may include necessary quality checks to ensure that the products being sent meet the required standards.

Handling customer returns, while an important aspect of inventory management, is generally not included in the calculation of turnaround time. Instead, it is often considered a separate process, as it deals with post-sale activities rather than the initial flow of goods through the supply chain. This distinction is important because turnaround time aims to measure the time from the point goods are ordered until they are delivered to the customer or shelf-ready, whereas returns involve different operational metrics that may focus on customer service or satisfaction.