Evaluation And Optimization Methods Of Scm Still many methods and techniques have been suggested over the years for SCM evaluation. Traditional methods focus on well-known financial measures, such as the return on investment (ROI), net present value (NPV), the internal rate of return (IRR), and the payback period. These methods are best suited to measure the value of simple SCM applications. Unfortunately, evaluation methods that rely on financial measures are not well suited for newer generation of SCM applications. These complex supply chains typically seek to provide a wide range of benefits, including many that are intangible in nature. During discussion of methods lets stop on a strategy which is a set of assumptions about cause-andeffect. If cause-and-effect relationships are not adequately reflected in the BSC, it will not translate and communicate firms vision and strategy. These cause and-effect relationships can involve several or all four of the perspectives in the BSC framework. For example, flexibility of service systems to meet particular customer needs (internal business operations perspective) will be more likely to meet customer expectations (customer perspective). Higher level of customer expectations will lead companies to supply more innovative products and services (learning and growth perspective). This in turn will increase the market share and profitability (financial perspective). [12] Also there is no doubt about the importance of informing in the supply chain and about the fact that information technology (especially various Internet applications) can greatly reduce the costs, strategic planning of this process and utilization of information is crucial. Information should be readily available to all companies in the supply chain and the business processes should be structured in a way to make full use of this information. The most important measures of SCM successfulness can be the final level of service, customer satisfaction and supply chain competitiveness and profitability as a whole. However as these are difficult to measure or use as a guideline to monitor improvement, more operational measurement methods and indexes were developed. On a more operational level the key performance indicators are total costs, quality and lead times in the supply chain. Survey of performance measures showed that cost and customer responsiveness dominate as the most often mentioned measures. [5] Cai et al [13] from other side, proposes a framework using a systematic approach to improving the iterative key performance indicators (KPIs) accomplishment in a supply chain context. The proposed research quantitatively analyzes the interdependent relationships among a set of KPIs. It can identify crucial KPI accomplishment costs and propose performance improvement strategies for decision-makers in a supply chain. In that research is provided an effective approach to managing supply chain performance in a dynamic environment. It solves the performance measures coupling problem by using a systematic approach, while few of previous research works have addressed this problem. The framework and methodology help companies improve performance across the entire supply chain in a systematic manner, through managing complex relationships among the KPIs, and refining the process of determining their KPIs. From the framework, it is feasible to get a holistic view of complex relationships among KPIs, where the causeeffect diagram becomes too complicated because of the large number of KPIs. The framework and methodology offer at least three important theoretical contributions to solve coupled KPI accomplishment problems and provide a good insight for further work. Which are as followings: first, the proposed framework provides a good implementation plan which converts the complex problem-solving into a more operational and quantitative exercise; second, the PCTM (accomplishment cost transformation matrix) analysis proposed in Cais paper is a new extension of the existing eigenstructure analysis methods (e.g., Work Transformation Matrix WTM derived from the DSM model) from engineering to business performance management; third, the framework and PCTM analysis method can serve as a useful modeling tool in analyzing coupled improvement problems. Researches accept that from PCTM should not be adopted as direct decisions, but as supporting information for decision-making. Because different experts may have different opinions of critical indicators, and of different possible solutions; every expert or manager might have his own PCTM. There is no standard answer that can be accepted (and executed) unanimously. Hence, Cai declares that the final decision-making is still left to the managers.

Q. Explain the above with respect to supply chain logistics management & Explain each line of what concept that are studied in supply chain logistics management is apply on it and how it is related to supply chain logistics management?

Ref: (Chap 1) Supply Chain Logistics Management Fifth Edition Donald J. Bowersox David J. Closs M. Bixby Cooper John C. Bowersox Michigan State University