24415 Lecture Notes - Lecture 7: Profit Margin, Competitive Advantage, Offshoring
Document Summary
Product availability and accuracy: sufficient stock to meet customer order, accuracy in delivered items, typical measures = % in stock, % accuracy of delivered item, an effective supply chain should always have products available for customers. Order cycle time: elapsed time from order placement to order receipt, typical measures = speed and consistency, amount of time required to deliver an order from the supplier to the customer. Includes expedite and substitute capability: ability to respond to special or unexpected needs of customer, typical measures = response time to special requests, being flexible and adaptable to unexpected occurrences e. g. natural disasters, fluctuations in market demand. Japanese automobile manufacturers e. g. toyota and honda, have lower production costs and produce more reliable cars source of ca comes from superior supply chain management: the quality of products can be attributed to superior supply chain management.
