- [10 points] Providing an example from logistics, distinguish the difference between the terms index, metric, and measure. (100-150 words).
- [10 points] There are seven factors in the successful development of supply chain metrics. List all seven factors. Select two factors and describe each in detail. (3-5 sentences for each).
- [10 points] What are the four major process measure categories? List at least two measures for each category that are used to examine logistics performance.
- [10 points] What are the major categories of metrics that need to be used to measure the performance of logistics operations.? Explain each in 2-3 sentences. Provide at least one metric for each category.
- [15 points] Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following:
- [15 points] Using the supply chain finance model developed for Question 5, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios:
- Transportation costs increase = 20%
- Warehousing costs decrease = 5%
- Average inventory decrease = 10%
- [15 points] Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following:
- [15 points] Using the model developed for Question 7, calculate the impact on redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for for the following scenarios:
- On-time delivery increases from 90 percent to 95 percent with a 5 percent increase in transportation cost.
- Order fill rate decreases from 96 percent to 92 percent with inventory reduced by 5 percent.
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Sales = $200,000,000
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Transportation cost = $12,000,000
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Warehousing cost = $3,000,000
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Inventory carrying cost = 30%
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Cost of goods sold = $90,000,000
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Other operating costs = $50,000,000
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Average inventory = $10,000,000
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Accounts receivable = $30,000,000
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Cash = $15,000,000
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Net fixed assets = $90,000,000
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Interest = $10,000,000
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Taxes = 30% of (EBIT – Interest)
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Current liabilities = $65,000,000
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Long-term liabilities = $35,000,000
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Stockholder’s equity = $45,000,000
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Selling price/order = $150/order
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Gross profit/order = $35/order
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Lost sales rate:
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On-time delivery failure = 15%
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Order fill failure = 20%
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Annual orders = 200,000
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Rehandling cost = $125/order
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Invoice deduction/service failure = $150/order
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Transportation cost = $1,000,000
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Average inventory = $1,000,000
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Interest cost = $1,500,000
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Inventory carrying cost rate = 20%/$/yr.
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Warehousing cost = $750,000
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Other operating cost = $500,000
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Cash = $3,000,000
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Accounts receivable = $4,000,000
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Fixed assets = $30,000,000
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Tax rate = 28%
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