Integration of supply chain elements and supply chain performance measurement

Abstract

The present trend in supply chain performance measurement demands newlineintegrated approach in developing models and strategies that would provide benefits newlineto all the firms along the supply chain. Industry specific or functional specific newlineperformance metrics are of narrow scope of improving individual organizational newlineperformance which lack in the concept of integration of supply chain elements for the newlinebenefit of all entities along the supply chain. In the present research work, newlinemaximizing overall delivery performance (operational perspective), minimizing newlinepenalty to the entities of a supply chain by finding optimal payment and collection newlineperiods that would minimize cash-to-cash cycle time, studying the effect of inventory newlineturnover ratio on cash-to-cash cycle time (financial perspective) and developing newlineframework to assess shareholder facing performance metrics (shareholders newlineperspective) have been considered as objectives of research by integrating certain key newlineperformance indicators. Data required for analysis of research objectives has been newlinecollected from a batteries manufacturing firm. newlineTo maximize the overall delivery performance, the problem is formulated as newlinedynamic programming model and solved to find benchmark values for expected newlineperformances from different entities of batteries manufacturing firm and its supply newlinechain. In working capital management, a linear programming model is developed and newlinesolved using TORA. The model aims at minimizing cash-to-cash cycle time as well as newlinepenalty to a firm, its suppliers and its distributors by finding optimal combination of newlinepayment and collection periods among trading partners upstream and downstream. newlineAlso, the effect of inventory turnover ratio on cash-to-cash cycle time has been newlineanalyzed in case of batteries manufacturing company. In order to provide a basis for newlineassessing the performance of a firm and its supply chain from shareholder s newlineperspective, a framework is developed to measure performance indicators and graphs newlineare plotted to analyze the results of renovation and supply ch