SCLT 6314 Homework 3

Logistics Data Processing and Performance Metrics in SCM

Problem:
Reading materials*: Chopra & Meindl, chapter 3
Assignments: Choose one of the supply chain performance drivers in chapter
3. Describe 5 of the metrics that you consider the most important for the
selected performance driver. Explain your reasons of selecting them. Also,
explain the rationale as to how they are measured. (If you consider the
metrics in Chopra & Meindl are incomplete, add new measures and provide
your rationale.)
*Feel free to utilize additional resources (internet or library databases) to
enrich your reasoning.

The five metrics are listed as below:

Facilities
Inventory
Transportation
Pricing
Sourcing and
Information

First let target the crucial point,

Pricing: - It should include all the aspect right from transportation of the raw, material to the final cost of
shipping the final goods. It is always necessary to put the right pricing for the perfect promotion of goods.

Sourcing: - Souring is one of the most important aspect of the Supply Chain as from this point the actual
supply chain starts for the company. A company which has the best sourcing would succeed in todays
volatile market.
Some factors to consider are:

Lead time

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MOQs
Pricing
Supply Ability

Information: - Information is the only form on which the whole supply chain relies. It starts right away from
the vendor end and reaches until the customer end.

With the help of right information one will be able to take the right decision. Be it forecasting or analysis of
back orders. Some of the important aspects are here:

o
o
o
o

Forecast status
Fulfilment Ratio
Seasonal factors
Variance etc.

Transportation:-

Transportation comes in to the picture when movement of goods is required. There are different options
for the transportation such as air, bus, rail-road etc.

Cost
Shipment Size
Mode

Inventory:- By saying inventory, we count all the inventories such as, WIP, Raw material, FG etc. By
controlling the inventory in proper manner company can save lot of money. The inventory related metrics
are listed below.

Cash to cash cycle time

Average inventory
Inventory turns
Seasonal Inventory
Fill rate
Obsolete Inventory

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Reference:

1. "Developing a Sustainable Supply Chain Strategy." Sustainable Supply Chain Management.

Print.

2. Chopra & Meindl (2013), Supply Chain Management Strategy, Planning, & Operation, 5th ed.
Prentice Hall, Upper Saddle River, NJ 07458

Victor Cheng SCLT 6314