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Cash to Cash Cycle as an Integral Performance Metric in
Supply Chain Management: A Theoretical Review
- - Melek Akgün and Meltem Gürünlü
Supply Chain Management (SCM) involves the management of flows in a chain. These flows are material flow, information
flow and money flow within a close network comprising suppliers, manufacturers and customers. The coordination and integration of
these flows within a firm and among firms are critically important for an effectively operating supply chain. For this reason, new
performance criteria should be introduced in order to evaluate the performance of the supply chain as a whole. One of these new criteria is
Cash to Cash Cycle (CCC) which is calculated for any firm by subtracting the debt turnover period from the sum of inventory
turnover and receivables turnover periods. Hence, one effective way of shortening the cash conversion cycle for an individual firm may
be by contracting the days of receivables and inventory outstanding and extending the days of payables outstanding. However, some
of the measures taken by a firm within a four-tier supply chain, consisting of suppliers, manufacturers, distributors and customers
in a debt-receivable relation, have zero effects on the supply chain's total cash conversion cycle. The aim of this study is to
develop a theoretical lens by examining the factors influencing CCC—an integral metric for the performance evaluation of supply chains.
© 2010 IUP. All Rights Reserved.
Reconsidering Supply Chain Management Paradigms:
A Question of Efficiency
-- Masato Shinohara
This paper aims to re-evaluate the value system of Supply Chain Management (SCM) by examining the elements of paradigms
that are embedded in the theories and practices. Conceptual analyses are made on the meaning of optimization of supply chain by
efficiency pursuit. Limitation of rational
decision making, theories of stock minimization, lead time shortening, value-added services, supply
chain integration, systemization and professionalization due to the limitation of information obtainable and the complexity
of the economy are pointed out. The author suggests that currently prevailing SCM paradigms are static and efficiency in supply chains should be
measured dynamically, taking different time spans into account. In the face of growing concern over unequal distribution of wealth and the
scarcity of natural resources with the vast Asian population participating in the global market, the traditional division of labor and
comparative advantage theories are now subject to reconsideration.
Future studies in this field should take into account the Asian value system
of modesty, diligence and long-term orientation on the basis of benevolence, trust and harmony. A cross-disciplinary and
cross-cultural analyses of the SCM paradigm has rarely been done. This paper claims to raise
questions on the existing paradigm in this field
and contributes as an explorative study to the restructuring of SCM theories.
© 2010 IUP. All Rights Reserved.
Efficiency Measurement Using DEA and AHP:
A Case Study on Indian Ports
-- Debendra Kumar Mahalik, Sreekumar and Gokulananda Patel
Success depends on adopting the best practices for the entire process of supply chain and competition makes organizations
choose and improve the supply chain process. In order to improve, comparing with respect to a standard process—better known
as benchmarking—is necessary, and in order to compare, performance measurement or efficiency measurement is a must. Issues
that arise are how to identify, how to measure, where to improve and how much to improve. If these questions are not dealt with,
the entire exercise will be fruitless. In this context, measuring the efficiency quantitatively and qualitatively is not an easy affair as
Supply Chain Management (SCM) consists of a number of processes and activities. So, there is a need to formulate models for
measurement and improvement. In this paper, an attempt has been made to measure efficiency by different techniques and the same has
been explained through a case study on Indian ports. The paper mainly uses Data Envelopment Analysis (DEA) and Analytic
Hierarchy Processing (AHP) as tools for measuring efficiency.
© 2010 IUP. All Rights Reserved.
Traditional Inventory Planning to Multi-Echelon Supply
Chain Inventory Planning: A Critical Review
-- Srikanta Routroy
The inventory planning problem was first addressed with assumptions of a single echelon and a single non-perishable product
with deterministic independent demand without any constraints; but now, the research has shifted to a multi-echelon supply chain
inventory planning with many constraints arising from supply chain members at different stages with stochastic behavior in terms of
demand and lead time for both perishable and non-perishable products. Multi-echelon inventory planning has been a particularly
difficult problem to solve in supply chain and not much progress has been made in this context to be useful to managers. The different
issues of traditional inventory systems and multi-echelon supply chain inventory systems are discussed in detail.
© 2010 IUP. All Rights Reserved.
Supply Chain Models with Imperfect Production Process
and Volume Flexibility Under Inflation
-- S R Singh and Urvashi
This study develops a supply chain from the perspective of both the manufacturer and the retailer.
The effect of imperfect production processes on lot-sizing is also considered. In this paper, a production model that takes into
account volume flexibility, weibull distribution deterioration rate and inflation is proposed. Items of imperfect quality can be sold at a
reduced selling price. The solution of the inventory system is illustrated with the help of a numerical example. The sensitivity of some
variables to changes in the values of the parameters of the systems is also examined.
© 2010 IUP. All Rights Reserved.
Reverse Logistics: An Imperative Area of Research for
Fashion Supply Chain
-- V G Venkatesh
The objective of this paper is to research on the current strategies and importance of Reverse Logistic (RL) operations and their
impact. This review also establishes the role of the returns policy in the fashion supply chain. It also covers the different strategies
adopted in the reverse supply chain across various supply chains and how it can be interconnected in the fashion supply chain.
Retrogistics has always been considered as one of the least explored cost-oriented research areas. Beyond the handling of recycling and
reuse, there is a tremendous scope for analysis of the returns in the RL process for identifying the causative factors. An analysis of
causative factors may help in taking remedial measures for reduction in number of returns. Hence, several retail organizations have
started giving importance in developing a best strategy and process for returns on the management program. Again, it is imperative for
evolving strategy specific to the fashion industry/business to their specific needs and nature of operations. This review paper discusses
different elements/strategies of operations involving RL in the fashion supply chain, different applications highlighting advantages and
profit improvement/cost savings.
© 2010 IUP. All Rights Reserved.
Cold Chain Infrastructure for Frozen Food:
A Weak Link in Indian Retail Sector
-- Jitendra Rathore, Anamika Sharma and Karunesh Saxena
Recently, the retail sector, particularly organized retail has shown enormous growth. Categories in retail, like food and grocery
have a lot of potential owing to changing lifestyles, demographics and various other growth drivers. India is a country of
geographic diversities—varied soil-types, habitats, climates and vegetations. Congenial agricultural conditions make India the second
largest producer of food and fruit in the world. Interestingly, food and grocery constitute the largest segment of retail of all categories
and organized retail views this category as a big opportunity. However, on the other side, there have been staggering losses in the
food (frozen) sector due to ill-equipped and weak cold chain infrastructure of the country ensuing post-harvest losses. The article is
an attempt to draw the attention of the reader towards the potential that exists in the frozen food business in India. There are
challenges but no dearth of opportunities; a collaborative effort on the part of various stakeholders like public-private partnership, cartels
and cooperatives can significantly help in building a sturdy supply chain that would contribute to the Gross Domestic Product
(GDP), generate employment, help in increasing exports and benefit stakeholders.
© 2010 IUP. All Rights Reserved.
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