Overview
One of the measures of performance of a product company is the performance of its supply chain. Optimizing the supply chain is a key strategy for making a company more profitable.
Measures
The following are the key measures that are used to measure the supply chain performance. The two measures can be viewed as the performance of the supply chain along two different axes.
- Flow Time - the amount of time currently required to complete the process for a single unit
- Throughput - the number of units produced per unit of time
(see cachon pg 15)