A numerical example from the consumer goods industry

Subsequently, the calculated values added are transferred into a cash value calculation (cf. Eq. 4-16). The factor used as discount factor for the time series is factor r, which can, for instance, be based on the average capital costs of the analysed supply chain player. The time horizon for the discounting was chosen to be a period of three years.  

The above calculation is performed for both affected partners of the supplier-buyer relationship and the values added calculated for the individual supply chain players are then totalled to determine the overall value added produced by the SCI (cf. Eq. 4-17). 

2 A numerical example from the consumer goods industry 

Subsequently, the developed quantification approach is to be tested out by performing the calculations for a case study of relatively low complexity by way of example. The study examines a supplier-buyer relationship in an supply chain section of the food industry. The names of the two supply chain players involved are given as Ci and C2 to ensure data confidentiality and to satisfy the non-disclosure agreements. For the same reason, the balance sheet and P L items are shown in modified form, keeping the ratio between the data identical so as not to undermine the meaningfulness of the findings. The relative effects of the analysed SCI remain unaffected. 

The balance sheet and the P L statement of company Ci serve as the starting point for the following quantification of the value added resulting from the introduction of a differentiated inventory management policy. The details provided in Tables 4-2 and 4-3 merely represent excerpts relevant for the subsequent calculations. 

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Chapter 5 is structured as follows. Since there exists no direct cause-and-effect relationship between SCM and a company s revenues the following section gives a concise overview of the relevant literature (Chapter 5.1). In the next step a logistics customer service-revenue curve is derived (Chapter 5.2) which determinants are calculated in the next step by a fuzzy-based q)proach (Chapters 5.3). The relevant results from the developed fuzzy model are presented in a numerical example from the consumer goods industry (Chapter 5.4). Finally, in Chapter 5.5 a discussion based on previous experience is offered. The presentation of the determination of the revenue contribution of SCM ends with a short summary in Chapter 5.6. 

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