Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

1.3.1 QCDF — Entrepreneurial Objectives in a Company and in a Supply Chain

Intended learning outcomes: Produce an overview on company performance, or supply chain performance. Identify entrepreneurial objectives affected by logistics, operations, and supply chain management in the target areas of quality, costs, delivery, and flexibility (QCDF). Describe target areas in supply chain performance across companies.


Company performance, or supply chain performance, comprises the achievement of entrepreneurial objectives in the target areas of quality, costs, delivery, and flexibility.[note 109]

In part, logistics, operations, and supply chain management have a signifi­cant influence on entrepreneurial objectives in all the four areas. Figure 1.3.1.1 identifies, both main and partial entrepreneurial objectives in the four areas.

Fig. 1.3.1.1     Entrepreneurial objectives affected by logistics, operations, and supply chain management.

QCDF objectives are objectives in the four target areas quality, costs, delivery and flexibility.

Objectives in the target area flexibility aim to enable performance excellence in the other three target areas. They are called enablers or enabler objectives; they lay the foundation for achieving results or results objectives in the target areas of quality and delivery (that is, effective­ness) as well as costs (that is, efficiency) in later business periods. In the ongoing business period, they represent investments and thus cost money and tie up capacities; for this reason, the number of measures to achieve flexibility objectives is limited.

Following [Hieb02], supply chain performance across companies includes, in addition, the achievement of entrepreneurial objectives in the three target areas of supply chain collaboration, coordination, and changeability. Figure 1.3.1.2 lists the objectives within each target area that can all be assigned to the target area of flexibility, as follows:

Fig. 1.3.1.2        Additional target areas in supply chain performance across companies (according to [Hieb02]).



Course section 1.3: Subsections and their intended learning outcomes

  • 1.3 Strategies in the Entrepreneurial Context

    Intended learning outcomes: Differentiate between various entrepreneurial objectives in a company and in a supply chain. Explain resolving conflicting entrepreneurial objectives. Describe the customer order penetration point (OPP) and the coordination with product and process design. Produce an overview on the target area flexibility: investments in enabling organizations, processes, basic technologies, and technologies toward personalized production.

  • 1.3.1 QCDF — Entrepreneurial Objectives in a Company and in a Supply Chain

    Intended learning outcomes: Produce an overview on company performance, or supply chain performance. Identify entrepreneurial objectives affected by logistics, operations, and supply chain management in the target areas of quality, costs, delivery, and flexibility (QCDF). Describe target areas in supply chain performance across companies.

  • 1.3.2 Resolving Conflicting QCDF Objectives

    Intended learning outcomes: Produce an overview on the supply chain strategy and the business plan. Explain opportunity, opportunity cost, and the potential for conflicting QCDF objectives. Present terms such as return on net assets, net income, profit after tax, net working capital, and primary entrepreneurial objective. Disclose the objective of a supply chain initiative (SCI).

  • 1.3.3 Customer Order Penetration Point (OPP), or Customer Order Decoupling Point (CODP), and Coordination with Product and Process Design

    Intended learning outcomes: Explain the determination of the (customer) order penetration point, or customer order decoupling point, and the stocking level. Describe the modular product concept, the concepts of customization and late customization as well as the postponement approach.

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