Supply chain management accounting

Supply chain management accounted for nearly 70% of the companies operating costs and comprised at least half of all the typical company s assets. 

Further levels can be added to take into account the supply chain management practice of the companies involved. 

Non-conflicting and unambiguous accountabilities are key to success. Supply chain managers are often held responsible for inventory levels but are unable to influence production lot sizes, which are normally under the control of the production managers responsible for production costs. As lot size adversely affects inventory levels and production costs, this is a common example of conflicting and ambiguous accountabilities, where responsibilities are not backed up by con-... 

A two-layered control strategy was described for supply chain management purposes. The strategy combines feedback controllers to account for the fast dynamics at the inventory nodes, while utilising the power of a fiilly-centralised optimisation-based model predictive controller to achieve an optimal operating policy for the supply chain network over a selected time horizon. 

Holistic > Takes all elements of supply chain management into account... 

As information and communication systems such as supply chain management systems sire human-machine-task-environment-systems e.g. Alter, 2002 Heinrich, 1993), the evaluation procedure has to take not only the system itself, but also the system environment (enterprise, value chain network) into account. Especially the execution of processes between enterprises comprises the interaction of humans with a process system (machine) directed towards the process taskin a given scenario (environment). Therefore, the evaluation should consider the different objectives of the different target groups of supply chain systems e.g. user as process owner, company s strategic goals, IT maintenance, etc.). Reference for improvement are the processes and situation as analyzed in the as-is analysis. 

Chapter 19 is our measurement chapter, but as each chapter is designed to stand alone inventory measurements are discussed here. Performance measures are needed to drive continuous improvement, if we do not know how well we are performing, if we do not have measurements, how can we know if we have improved, in terms of client satisfaction, stock outs and stock turns. Measurement is also necessary to set directions and targets for the future. The criteria for performance measures should cover a balanced approach to aU key parameters of the supply chain and should provide operational measures rather than purely financial measures. Measures should be simple, easy to define and easy to monitor. In determining what should be measured it is useful to get away from standard accounting measures. Supply chain management requirements are different from those of the accountants. In determining our own measurements we should ask ... 

This new book is unique in providing a comprehensive account of the state-of-the-art models, methods and tools available to address the above-mentioned features of the modem supply chain. If offers a comprehensive review of the associated literature of supply chain management and then systematically builds on this knowledge base to develop the mathematical models representing each of the core functional units and decision levels of the corporation and shows how they can be... 

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