April 2020
Beginner to intermediate
184 pages
3h 50m
English
Content preview from Logistics ManagementBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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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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