Facilities Facilities are the actual physical location in the supply chain network where product is stored,assem storage

sites. Role in supply chain Facilities are the actual physical location in the supply chain network where product is stored,assem storage sites.They are the locatons to or from which the inventory transported. Role in Competitive Strategy Facilities are a key driver of supply chain performance in terms of responsivenesss and efficiency.C stored in only one location,this centralization increases efficiency.However cost reducton comes at be located far from the production facility.The opposite is also true. locating facilities close to custo efficiency.

Facility related metrics

Capacity:Measures the maximum amount a facility can process Utilization:Measures the fraction of capacity that is being used in the facility Theoritical flow/Cycle time of production:Measures the time required to proces a unit if Actual average flow/cycle time:Measures the actual average time taken for all units processed ove time includes the theoritical time and any delays

Flow time efficiency:It is the ratio of theoritical flow time to hte actual average flow tim Product variety:Product variety measures the number of products/product families proc Volume contribution of top 20 percent SKUs and customers:Measures the fraction of tot SKUs and customers.

Processing/setup/down/idle time:Processing time measures the fraction of time that th time being set up prcess units.Down time measures fraction of time facility was unavail the facility had no unit to process.

Average prduction batch size:Measures the average amount produced in each productio Production service level:Measure the fraction of production orders completed on time a

Inventory Inventory encompasses all raw materials ,work in process and finished goods within a suppply cha Role in ssupply chain Inventory exists in supply chain because of a mismatch between supply and demand.An important to increase the amount of demand that can be satisfied by having the product ready and available significant role that inventory plays is to reduce cost by exploiting economies of scale that may ex

Role in the competative strategy Inventory plays a significant role in supply chains ability to support a firms competative strategy.If a very high level of responsiveness,a company can achieve this responsiveness by locating large a customer.Conversely a company can also use inventory to become more efficient by reducing inve latter strategy wouldd support competative strategy of being low cost producer.The trade off impli the responsiveness that result from more inventory and the efficiency that result fromm less inven

Inventory Related Metrics

Average Inventory:Measures the average amount of inventory carried.Average inventor units,days of demand and financial value.

Product with more than a specified number of days of inventory:Identifies the product f high level of inventory.This metric can be used to ideentify products that are in oversup the high inventory,such as price discounts or being a very slow mover.

Average replenishment batch size:Measures the average amount in each replenishment meaasured by SKU in terms of both units and days of demand

Average safety inventory:Measures the average amount of inventory in hand when a re arrives.Average safety inventory should be measured by SKU in both units and days of averaging over time the minimum inventory in hand in each replenishment cycle.

Seasonal Inventory:Seasonal inventory measures the amount of both cycle and safety in due to seasonal changes in demand

Fill rate:Measures the fraction of orders/demand that were met ontime from inventory.F over time but over a specified number of units of demand.

Fraction of time out of stock:Measures the fraction of time that a particular SKU had ze used to estimate the estimate the demand during stock out of period.

Transportation Transportation entails moving inventory from point to point in the supply chain.Transportaion can tak and routes,each with its own performance characteristics.Transportation choices haave a large impac efficiency.

Role in the Supply chain Transportation moves product between different stages of supply chain .Like other supply chain drive reponsiveness and efficiency.Faster btransportation allows supply chain to be more responsive but re company uses also aaffects inventory and facility locations in the supply chain.

Role in the Competative strategy The role of transportation in a companys competative strategy mainly focus in the companys consider competative strategy targets a customer who demands a very high level of responsivenesss and that reponsiveness ,then a firm can use transportation as one driver for making the supply chain more rep companys competative strategy targets customer whose main criterion is price,then the company ca product at the expense of responsiveness or efficiency.The optimal decision for the company often m two.

Transportation related metrics Average inbound transportation cost:Typically measures the cost of bringing aa product in cost of goods sold(COGS) Average incoming shipment size:Measures the average number of units or dollars in each Average inbound transportation cost per shipment:Measures the average transportation c Average outbound transportation cost:Measures the average transportation cost of sendin customer.Ideally this cost should be measured per unit shipped,but is often measured as a seperate this metric by customer.

Average outbound shipment size: Measures the average number of units or dollars on eac Average outbound transportation cost per shipment:Measures the average transportation Fraction transported by mode:Measures the fraction of transportation( in units or dollars)

Information Information consists of data and analysis concerning facilities,inventory,transportation,costs,prices an driver in supply chain because it directly affect seach of other drivers.Information presents managem efficient.

Role in the supply chain Information deeply affects every part of the supply chain. 1.Information serves as the connection between various stages of a supply chain,allowing them to c

daily operations of each stage of supply chain activity Role in the competative strategy Information is an important driver that companies have used to become both more efficient and more technology is a testimony to the impact that information can have on improving a company.Like the o when they must make the trade off between efficieny and responsiveness. Information related metrics Forecast horizon :Identifies how far in advance of the actual event a forecast is made.The driven by forecast.

Frequency of update:Identifies how frequently each forecast is updated.The forecast shou Forecast error:Measures the difference between the forecast and actual demand.The forec uncertainity such as inventory or excess capacity.

Seasonal factors:Measure the extent to which average demand in a season is above or bel Variance from plan:Measures the difference between the planned production/inventories a Ratio of demand variability to order variability:Measures the standard deviation of incomi

l be revisited,so that large changes can be flagged and corrective actionn taken.

otentially indicates the existance of the bullwhip effect.

Sourcing Sourcing is the choice of who will perform a perticular supply chain activity such as production information.At the strategic level these decisions determine what functions a firm performs and what affect both the responsiveness and efficiency of supply chain.

Role in the Supply Chain Sourcing is the set of business processes required to purchase goods and services.Managers must fir that will be performed within the firm.For each outsourced task the manager must decide wheather suppliers.

Role in the competative strategy Sourcing decisions are crucial because they affect the level of efficiency and responsiveness the s outsource to responsive third parties if it is too expensive for them to develop his responsiveness on t

Sourcing related metrics Days payable outstanding:Measures the number of days between when a supplier perform

Average purchase price:Measure the average price at which a good or servce was pur should be weighted by the quantity purchased each price

Range of purchase price:Measures the fluctuation in purchase price during a specified per Average purchase quantity:Measures the average amount purchased per order.The goal aggregation is occuring across locations when placing an order.

Fraction on time deliveries:Measures the fraction of deliveries from the supplier that were Supply quality:measures the quality of product supplied Supply lead time:Measures the average time when an order is placed and the product arri

Pricing Pricing determines how much a firm will charge for goods and services that it makes available in t of the buyer of the good or service,thus affecting supply chain performance

Role in the supply chain Pricing is the process by which a firm decides how much to charge cutomers for its goods and serv that choose to buy the product as well as the customer expectations.This directly affects t responnsiveness required as well as the demand profile.

Role in the competative strategy Pricing is a significant attribute through which a firm executes its competative strategy Pricing related metrics Profit margin:Measures profit as apercentage of revenue.Afirm needs to examine a wide variet including dimensionss such as type of margin,scope,,customer type and others

Days sales outstanding:Measures the average time when a sell is made and when the cash is colle Incremental fixed cost per order:Measures the incremental cost that are independent of the size o a manufacturing plant or order processing or transportation cost that are incurred independent of include picking cost at a mail order firm.

Incremental variable cost per order:Measures the incremental cost that vary with the size of th order firm or variable production cost at a manufacturing plant.

Average sale price:Measures the average price at which a supply activity was performed in a giv by weightimng the price with the quantity sold at that price.

Average order size:Measures the average quantity per order. Range of sale price:Measures the maximum and minimum sale price per unit over a specified time Range of perodic sales:Measures the maximum and minimum of the quantity sold per period du understand any coorelation between sales and price and potential opportunity to shift sales by cha