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Supply Chain Drivers and Metrics (Inventory (Inventory-related metrics…
Supply Chain Drivers and Metrics
Inventory
Role
mismatch between sup/de
Exploit economies of scale
-cost
+product availbility
Affect asset, cost, responsivness & material flow time
Decision Components
Cycle inventory
Safety inventory
Seasonal inventory
Level of product availability
Inventory-related metrics
Product with more then a specified number of days of inv
Ave. replenishment batch size
Inventory turns
Ave. safety inventory
Average inventory
Seasonal inventory
C2C cycle time
Fill rate
Fraction on time out of stock
Obsolete inventory
Transportation
Decision Component
Choice of transport mode
Design of transportation
Role
Responsiveness vs efficiency
Affect inventory & facilities
Moves product between stage
Transportation-related metrics
Ave. in/outbound shipment size
Ave. in/outbound trans. cost per shipment
Ave. in/out bound trans cost
Fractiion transpoted by mode
Facilities
Role
Trade-Offs
Facility & Transportation
Inventory
Increasing Responsiveness
+Capacity
+Flaxibility
+Number
Facility-Related Metrics
Capacity
Utilization
Processing
Production cost
Quality losses
Flow time efficiency
Product Variety
Avarage Production Batch Size
Production service level
Volume Contribution
Decision Components
Role
Location
Capacity
Sourcing
Decision Components
Supplier selection
Procurment
In-house or outsource
Sourcing related matrics
Days payable outstanding
Ave purchase price
Range of purchase price
Ave. purchase quantity
Supply quality
Supply lead time
Percentage of on-time deliveries
Suplier reliability
Role
Purchase of goos
in-house or outsource
Responsive vs efficient source
+size of total surplus
Information
Role
+asset utilization, flow coordination, vusibility, responsuveness
-cost,+efficiency
+info+complex,cost;
Decision components
Push vs pull
Coordination & info sharing
Sales & operation planning
Enabling tech
Information-relates metrics
Forecast horizon
Frequency of update
Forcast error
Seasonal factors
Variance from plan
Ratio of demand variability to order variability
Pricing
Role
Aims to +profit
Match demand and supply
Affect responsiveness and demand
Determines amount to charge customers
Decision component
everyday low price vs high-low price
Coordination &i nfo sharing
Pricing & economies of scale
Pricing-related metrics
Profit Margin
Days sale outstanding
Incremental fixed cost per order
incremental variable cost per order
Ave.sale price
Ave. order size
Range of sale price
Range of periodic sales