Supply Chain Performance Measures

Supply Chain Performance Measures - Chapter 5 Supply Chain...

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Chapter 5: Supply Chain Performance Measurement and Financial Analysis Learning Objectives After reading this chapter, you should be able to do the following: Understand the scope and importance of supply chain performance measurement. Explain the characteristics of good performance measures. Discuss the various methods used to measure supply chain costs, service, profit, and revenue. Understand the basics of an income statement and a balance sheet. Demonstrate the impacts of supply chain strategies on the income statement, balance sheet, profitability, and return on investment. Understand the use of the strategic profit model. Analyze the financial impacts of supply chain service failures. Utilize spreadsheet computer software to analyze the financial implications of supply chain decisions.
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Measure or Metric? Measure Easily defined with no calculations and with simple dimensions Metric Needs definition, involves a calculation or is a combination of measures. Frequently expressed as a ratio or a percentage.
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