SCM 300 Supply Chain Management, Operations, and Performance Excellence: Strategic Metrics, Lean Manufacturing, EOQ, Cycle Time, Bottlenecks, Line/Flex/Hybrid Flow, Upstream/Downstream/Reverse Logistics, Safety Stock, Pipeline Inventory, Vertical Integrat

SCM 300 Supply Chain Management, Operations, and Performance Excellence: Strategic Metrics, Lean Manufacturing, EOQ, Cycle Time, Bottlenecks, Line/Flex/Hybrid Flow, Upstream/Downstream/Reverse Logistics, Safety Stock, Pipeline Inventory, Vertical Integration, Vendor/Contract/3PL Management, Push/Pull/Postponement Systems, Bullwhip Effect, Omni-Channel Retailing, Last-Mile Logistics, Cross-Docking, Warehousing vs Distribution Centers, Cargo Classifications, TEU, Intermodal Transport, Quality Management, TQM, Six Sigma, ISO 9000, Balanced Scorecard, SCOR Model Exam Questions Verified and Provided with Complete A+ Graded Rationales Latest Updated 2026 Performance metric (PM) a single performance measurement used to evaluate, motivate, and improve performance. System of metrics A group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome. Reasons organizations use PMs (a) Helps to establish and support standards, (b) Motivate good behavior, (c) Identify trends, (d) Managing large numbers of resources, (e) Performance data can facilitate decision making and planning Importance of Goals and Stakeholders key to developing metrics that meet stakeholder goals is first recognizing all the stakeholders and then understanding their individual goals. Consequences of poor metrics ill-conceived metrics can motivate bad behavior: (ex) SC goals are not met, poor output, waste, undesirable employee behaviors, managers may make poor decisions, employee victimization, undeserved winners, lack of contentment. Requirements of a good metric measureable, easily understood, attainable, strategically oriented, easy to measure, provides value, provides guidance, cheater proof SMART metrics a metric that is Specific, Measurable, Attainable, Relevant, and Timely. A helpful device that can guide managers in the development of useful managerial metrics. 3 Key measurement system attributes (1) Effective: were the desired goals met? (2) Efficient: A measure of the resources used in the process. (3) Adaptable: measure of the conditions under which the tasks were completed. Keys to designing a system of metrics Stakeholders and goals, Good metrics, Simplicity, Completeness, Redundancy (avoid), Continuous improvement, Leadership KPIs (Key Performance Indicators) Individual performance metrics identified by the company as being imperative to achieving the organization's most important goals. Executive dashboards computer-generated visual representation of a company's performance that is often available to executives on any of their digital devices. Often include KPIs, real-time and historical data, and color-coded performances centers that helps them quickly identify positive, negative, and neutral output. Managerial paralysis situation where managers are inundated with data. This slows decision-making and may result in managers stalling or avoiding decision-making. Common measurement pitfalls Managers fail to use the data, Blind belief in institutional metrics, incomplete measurements, Utilizing too many metrics, Driving toward perfection may waste resources, What do those numbers really mean? Shared metrics A metric that impacted by two related parties. Balanced scorecard (BSC) performance management tool that focuses on strategic activity and outcomes. (tracks 4 different traditional output areas.) (1) Financial results (2) Customer-related results (3) Internal business process results, (4) Learning and growth results. -All of these are used to locate problems before they impact financial results. SCOR Model (Supply Chain Operations Reference Model) Measurement tool that allows SC partners to track performance, communicate progress, and develop opportunities for improvement. (5 primary SC processes: Plan, Source, Make, Deliver, Return) This is a tool used to integrate the SC. Total SCM Costs cost of every process, material, fee, defect, etc. that runs through the SC. Cash-to-cash cycle measure of the number of days b/t the time a company pays their supplier for inventory and the time that same company is paid for the same inventory by their customer. -Formula: (Days of Inventory on hand) + (Days of A/R owed to your company by your customer) - (Days of A/P your company owes to suppliers). Capacity utilization ratio of the amount of product produced by a manufacturing process vs. the max. capacity of that : (Actual factory output) / (factory design capacity) Process Velocity measure of how long a unit sits in a process vs. the amount of work time that is expended on the unit. -Formula (Throughput time) / (Value Added Time). Perfect Order fulfillement Percentage of orders that are full, on time, and are damage free.