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

1.4.3 Performance Indicators in the Target Area of Costs

Intended learning outcomes: Present the performance indicators stock-inventory turnover, work-in-process-inventory turnover, work center efficiency, capacity utilization, and administration cost rate.


The influence of logistics, operations, and supply chain management in the target area of costs is significant. The performance indicators in Figure 1.4.3.1, Figure 1.4.3.2, Figure 1.4.3.3,  and Figure 1.4.3.4 are direct measures of the target objectives involved. For terms, definitions, and arguments, see Sections 1.2.1, 1.2.3, and 1.2.4.

Fig. 1.4.3.1        The performance indicator stock-inventory turnover.

Fig. 1.4.3.2        The performance indicator work-in-process-inventory turnover.

Fig. 1.4.3.3        The performance indicator work center efficiency.

Fig. 1.4.3.4        The performance indicator capacity utilization.

Further performance indicators relate to administration costs for purchase, sales, work preparation, and so on. They are all of the type in Figure 1.4.3.5.

Fig. 1.4.3.5        The performance indicator administration cost rate.


Recap

The animations on the following pages show the Performance Indicators in the different Target Areas.
Click on the names of the indicators to get the accordant details.



Course section 1.4: Subsections and their intended learning outcomes

  • 1.4.4 Performance Indicators in the Target Area of Delivery

    Intended learning outcomes: Present performance indicator fill rate, also called customer service ratio, or OTIF (on-time and in-full). Identify the performance indicators delivery reliability rate, batch size or lot size, capacity utilization, value-added rate of lead time, variance in work content response time and order confirmation time.

  • 1.4.5 Performance Indicators in the Target Area of Flexibility

    Intended learning outcomes: Present the performance indicator bid proposal success rate, order success rate, breadth of qualifications, and temporal flexibility. Describe the SCOR indicators upside supply chain flexibility, upside supply chain adaptability, downside supply chain adaptability, and overall value at risk (VaR).

  • 1.4.6 Performance Indicators of the Primary Entrepreneurial Objective

    Intended learning outcomes: Present the performance indicator cash-to-cash cycle time and return on net assets (RONA).

Print Top Down Previous Next