Measuring Supply Chain Performance
Student Tip 
If you can’t measure it, you can’t control it.
Like all other managers, supply chain managers require standards (or metrics, as they are often called) to evaluate performance. For example, the large grocery chain HEB tracks metrics such as total freight cost per $1 million of sales, errors and returns in distribution, and lead-time compliance. Lancers, a beverage dispenser manufacturer, tracks metrics such as on-time delivery percentage, defects per million, and lead time. We now introduce several financial-based inventory metrics.
Assets Committed to Inventory
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LO 11.6 Compute the percentage ...
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