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Definitive Guides for Supply Chain Management Professionals (Collection)
book

Definitive Guides for Supply Chain Management Professionals (Collection)

by Robert Frankel, Scott B. Keller, Brian C. Keller, Gibson Brian J., Joe B. Hanna, C. Clifford Defee, Haozhe Chen, Tate Wendy, Nada Sanders
February 2014
Intermediate to advanced
1873 pages
56h 12m
English
Pearson
Content preview from Definitive Guides for Supply Chain Management Professionals (Collection)

8. Inventory Performance Measurement

Considering the central nature of inventory as an indication of the effectiveness of supply chain operations and decisions, inventory measurement and performance assessment are paramount. For example, Gartner annually publishes a Top 25 Supply Chain1 ranking that highlights the firms that are innovators and leaders in terms of their supply chain processes and strategies.2 Roughly 40 percent of Gartner’s ranking logic is associated directly with inventory. One of the key performance indicators (KPIs) it uses is Return on Assets (ROA), which is considered a robust measure of a firm’s overall operational efficiency and calculated as

ROA = Net Income/Total Assets

Because inventory is an asset, a firm’s inventory ...

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Publisher Resources

ISBN: 9780133797947