Professional Documents
Culture Documents
Chapter -3
Return on Equity
The main summary measure of a firms performance
ROE =
Shareholders equity- The portion of the balance sheet that represents the capital
received from investors in exchange for stock
By- Prof. P.K.Shah
INVENTORY
ROLE IN SUPPLY CHAIN
Inventor y
Mismatch between supply and demand
Unintentional Unnecessary cost scope to reduce
Intentional Economical to produce in bulk
I is the number of units contained within the system,
inventory;
T is the time it takes for all the inventor y to go through the
process, flow time;
R is the rate at which the process is delivering throughput,
flow rate or throughput
I=D*T
By- Prof. P.K.Shah
TRANSPORTATION
Role in SCM
Components of transportation decision
Design of transportation network
Choice of transportation mode
Transportation related metrics
Average
Average
Average
Fraction
INFORMATION
Role in SCM
Components of information decisions
Push v/s Pull
Co-ordination and information sharing
Sales and operations planning
Technology
EDI
ERP
RFID
Information related metrics
Forecast horizon
Frequency of update
Forecast error
Seasonal factors
Variance from plans
Ration of demand variability to order variability
SOURCING
Role in SCM
Components of sourcing decisions
Inhouse or outsource
Supplier selection
Procurement
Sourcing related metrics
Payable outstanding
Range of pricing
Supply/purchase quantity
Fraction of on-time delivery