Term |
Definition |
Consideration
While choosing Warehouse Location
|
Capability / Capacity The bigger the warehouse, the higher the stock
capability so that company could handle larger amount of order at the peak
demand periods.
Responsiveness / Flexibility The range between warehouse and consumer location
will directly affect the time usage to transfer the goods and product. The
closer the range, the shorten the time needed.
Cost Include the Rented and land cost, taxes, salary of delivery
staff, transportation cost, utility costs, etc.
Road traffic flow The capability of the road to handle different type
of transportation. The aerate speed of traffic and its peak period.
Infrastructure The warehouse location that near to supportive infrastructure
is more convenient such as the airport, railway and ports, highway, supplier
and so on.
Resources availability&
accessibility An operation of the warehouse requires many
resources. For example, the workforces, product from supplier.
Environment and safety Warehouse is the places of stocking the product
which require to be safe from threat before sending to consumer. So that
warehouse should not be risk from natural disaster. For example, warehouse
should locate at higher ground to prevent the risk of stagnant water.
|
Framework for
Network Design Decisions in the Supply Chain |
Phase 1: Define
Supply chain Strategy Phase 2: Define
Regional Facility configuration Phase 3:
Identify Potential Location Phase 4: Select
the locations. |
Components of
Inventory Decisions |
·
Seasonal Inventory ·
Safety Inventory ·
Cycle Inventory ·
Level of Product availability. |
Expanding of
strategic scope |
Scope of
strategic fit Intra-functional
scope Inter-functional
scope Intercompany
scope Agile company
scope |
Financial
Measures of Formula |
Return of Equity ROE = Net Income
/ Average shareholder equity
Return of Asset ROA = Earnings
before Interest / average total assets
Account payable turnover APT= cost of
goods sold / account payable
Account
receivable turnover ART = Sales
revenue / Account receivable
Inventory
turnover INVY = cost of
goods sold / inventories
Property, plant,
and equipment turnover PPER = Sales
revenue / PP& E |
|
|
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