Supply Chain Performance Metrics and Financial Analysis

Catalog description

Performance metrics are essential for effective planning and management of supply chain operations. Clear understanding of the relationship between supply chain decisions/initiatives and the firm's primary financial measures is an increasingly important competency for all supply chain managers. SCM 801 provides professional-level coverage of essential supply chain performance and financial metrics applied both within the firm and across the extended enterprise. The course helps students develop the ability to choose and utilize the correct set of performance and financial metrics for varying supply chain decision-making situations. Students learn how to leverage key supply chain decision variables to impact performance and financial metrics. Students also learn to apply appropriate accounting tools and techniques and conduct financial analyses to evaluate and optimize supply chain decisions. Topics addressed include inventory and financial metrics, measures of supply chain velocity, working capital, ratio analysis, the Strategic Profit Model, total cost of ownership, the Balanced Scorecard, and the SCOR Model. Additionally, the course will utilize various financial tools and techniques (such as Discounted Cash Flow Analysis, Ratio Analysis, Breakeven Point Analysis, and Cost Volume Profit Analysis) to demonstrate the impact of supply chain principles and concepts on the performance of a firm. Students successfully completing the course will be able to: - Identify, describe, and measure the essential metrics that are the key indicators of supply chain performance, particularly as that performance relates to financial performance of the firm and the extended enterprise - Identify and assess the perspectives of alternative stakeholders that analyze and use financial metrics and statements - Utilize various tools/models (working capital evaluation, ratio analysis, etc.) to calculate, analyze, and gain better insights on the interplay between supply chain decision making and financial performance - Utilize discounted cash flow models to evaluate supply chain investment proposals - Describe the role of supply chain costs on the income statement and balance sheet of a firm while understanding different types of costs, cost drivers, and breakeven point evaluation (BEP) - Demonstrate understanding of how the sales and operations plan is developed and its role in supply chain processes - Compare various viewpoints regarding performance metrics and the constraints that inhibit effective implementation and utilization of those metrics