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

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).


We noted above (see Section 1.3.2) that the primary entrepreneurial objective is the return on net assets (RONA). To measure performance, the indicators in Figure 1.4.6.1 and Figure 1.4.6.2 are used:

Fig. 1.4.6.1        The performance indicator cash-to-cash cycle time.

Fig. 1.4.6.2        The performance indicator return on net assets (RONA).



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).

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