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H 15- There are two different SCM systems for an automotive industries. We are going to compare them based on 3 different KPIs of Freight
H 15- There are two different SCM systems for an automotive industries. We are going to compare them based on 3 different KPIs of "Freight Bill Accuracy", "Inventory Turnover" and "Gross Margin Return on Investment". The required information is given in the following table. In your opinion, which SCM system is more successful? Why? (Point: 25). Note that the importance degrees of "Freight Bill Accuracy", "Inventory Turnover" and "Gross Margin Return on Investment" are 0.2, 0.5 and 0.3, respectively. Items Gross Profit SCM system 1 SCM system 2 $62 million $82 million Opening Inventory Value $12 million $32 million Closing Inventory Value $22 million $22 million Cost of Goods Sold $103 million $153 million Total Freight Bills Number of Correct Freight Bills 151 202 148 194
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