CHAPTER 12
Creating Customized Indices to Monitor Logistics Operations
Introduction
A logistics performance index (LPI) can be used to monitor the firm’s progress in managing its logistics activities. It can also be linked to an organization’s planning process to determine how well it is achieving its strategies and objectives. The KPIs that are most closely linked to the organization’s strategy and objectives or management priorities should be included in the index. An advantage of creating an LPI is that overall logistics performance is represented by a single aggregate measure that offers managers an initial, high-level logistics perspective.
The LPI is a weighted average of the points associated with all the KPIs that comprise the index. ...
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