Chapter Three: Supply Chain Drivers and Matrices

***Drivers of Supply Chain Performance:

• Achieving strategic fit to competitive strategy requires that company’s supply chain
achieve the balance between responsiveness & efficiency that best supports the company’s
competitive strategy.
• A supply chain’s performance in terms of responsiveness and efficiency is based on the
interaction between logistical and cross functional drivers of supply chain performance.

Cross-functional
Logistical Drivers
Drivers

Facilities Inventory Transportation Information Sourcing Pricing

• The goal is to structure the drivers to achieve the desired level of responsiveness at lowest
possible cost, thus improving the supply chain surplus and the firm’s financial performance.

Logistical Drivers

1. Facilities:
• Facilities are the actual physical locations in the supply chain network where product is
stored, assembled, or fabricated.
• The two major types of facilities are
a) Production Sites (Factories) b) Storage Sites (Warehouses)
The Role Facilities Play in the Supply Chain:

 Firms can increase responsiveness by increasing the number of facilities, making them
more flexible, or increasing capacity.
 Increasing the number of facilities increases facility and inventory costs but decreases
transportation costs and reduces response time.
 Increasing the flexibility or capacity of a facility increases facility costs but decreased
inventory costs and response time.
 Thus, each supply chain must find the appropriate tradeoff when designing its facilities
network.
 For example, IKEA has become profitable by opening a few hundred large stores (no more
than one or two per city) to grow efficiency. While Seven- Eleven Japan has grown profitability
by opening a highly dense network of stores (often hundreds per city) to provide
responsiveness. Both companies are successful as the facility decision are aligned with the
supply chain strategy.

Components of Facilities Decisions:

I. Role:
• Firms must decide whether production facilities will be flexible, dedicated, or a
combination of the two.
- Flexible capacity can be used for more many types of products but is often less efficient,
whereas dedicated capacity can be used for only a limited number of products but is more
efficient.
• Firms must also decide whether to design a facility with a product focus or a functional
focus.
- A product-focused facility performs all factions (e.g., fabrication and assembly) needed for
producing a single type of product. A product focus tends to result in more expertise about
a particular type of product.
- A functional-focused facility performs a given set of functions (e.g. fabrication or
assembly) on many types of products.
• For warehouses and distribution centers, firms must decide whether they will be
preliminary cross-docking facilities or storage facilities.
***Cross Docking Facilities ***Storage Facilities/Traditional warehouse
Cross-docking involves direct offloading and re-loading. Traditional warehousing requires a distributor
The warehouse part is eliminated. with stocks of product on hand to deliver to
At cross-docking facilities, inbound trucks from suppliers customers.
are unloaded, the product is broken into smaller lots and
is quickly loaded onto store bound trucks. Each store
bound truck carries a variety of products, come from each
inbound truck.
In cross-docking the cost of warehousing is saved. Storing goods in a warehouse is costly due to
warehouse rental cost.
Elimination of the warehousing improves the speed of Speed of Delivery comparatively slow.
delivery.
Despite the increase of speed, cross-docking actually The risk of damage of products is
reduces the risk of damage to products. Since cross- comparatively high.
docking moves products from incoming trucks directly to
outgoing trucks, it passes through the least amount of
hands necessary to get the job done.
Cross-docking reduces the need to hold onto large Large volumes of inventory are needed to hold
volumes of inventory as stocks are quickly received and as stocks.
shipped.
In cross-docking, there are third party logistics who can In traditional warehousing, there are multiple
handle things end-to-end. parties involved in the process chain, like
trucking partners, logistics partners, and parcel
delivery.
ii. Location:
• Firms must decide where it will locate its facilities. A basic trade-off is whether to centralize
to gain economies of scale or to decentralize to become more responsive by being closer to
the customer.
• Firms must also consider a host of issues related to the various characteristics of the local
area in which the facility is situated such as quality of workers, cost of workers, cost of
facility, availability of infrastructure proximity to customers, the location of that firm’s
other facilities, tax effects, and so on.
iii. Capacity:
• A large amount of excess capacity allows the facility to respond to wide swings in the
demands placed on it. Excess capacity, however, costs money and therefore can decrease
efficiency.
• A facility with little excess capacity will be more efficient per unit of product it produces
that one with a lot of unused capacity. The high utilization facility however, will have
difficulty in responding to demand fluctuations.
• Therefore a company must make a trade-off to determine the right amount of capacity to
have at each of its facilities.

Facility Related Matrices that influence supply chain performance:

• Capacity: measure the maximum amount a facility can process.

• Utilization: measures the fraction of capacity that is currently being used in the facility. Unit

costs tend to decline and delays increase with increasing utilization.

• Processing/setup/down/idle time: measures the fraction of time that the facility was
processing units, being set up to process units, unavailable because it was down, or idle
because it had no units to process.
• Production cost per unit: measures the average cost to produce a unit of output.
• Quality losses: measure the fraction of production lost as a result of defects. Quality losses
hurt both financial performance and responsiveness.
• Theoretical flow/cycle time of production measures the time required to process a unit if
there are absolutely no delays at any stages.
• Actual average flow/cycle time measures the average actual time taken for all units
processed over a specified duration such as a week or month. The actual flow/cycle time
includes the theoretical time and any delays. This matric should be used when setting due
dates for orders.
• Flow time efficiency is the ratio of between the theoretical flow rate and the actual average
flow time. Low values for flow time efficiency indicate that a large number fraction of time
is spent waiting.
• Product variety measures the number of products/products families processed in a facility.
Processing costs and flow times are likely to increase with product variety.
• Volume contribution of top 20 percent SKUs and customers measures the fraction of total
volume processed by a facility that comes from the top 20 percent SKUs or customers. An
80/20 outcome in which the top 20 percent contribute 80 percent of volume indicates likely
benefits from focusing the facility where separate processes are used to process the top 20
percent and the remaining 80 percent.
• Average production batch size: measures the average amount produced in each production
batch. Large batch sizes will decrease production cost but increase inventories in the supply
chain.
• Production service level: measures the fraction of production orders completed on time and

in full.

2. Inventory
• Inventory encompasses all raw materials, work in process, and finished goods within a
supply chain and exists in the supply chain because of mismatch between supply and
demand. The inventory belonging to a firm is reported under assets.
• Changing inventory policies can dramatically alter the supply chain’s efficiency and
responsiveness. For example, a clothing retailer can make itself more responsive by
stocking large amounts of inventory and satisfying customer demand from stock. A large
inventory increases the retailer’s cost, thereby making it less efficient. Reducing inventory
makes the retailer more efficient but hurts its responsiveness.

The Role Inventory Play in the Supply Chain:

- High level of inventory in a supply chain improve responsiveness and also facilitates a
reduction in production and transportation costs because of improved economies of scale
in both function. This choice, however, increases inventory holding cost and also leave the
supply chain vulnerable to the need for market-downs, lowering profit margins
- Low levels of inventory improve inventory turns but may result in lost sales if customers
are unable to find products they are ready to buy.

Component of Inventory Decisions

Companies make several decisions regarding inventory:

Inventory Positioning: Inventory Positioning – Deciding where in the supply chain to hold
inventory. Inventory can be three types:
• Cycle Inventory: The average amount of inventory that is used to satisfy demand between
receipts of supplier shipments. The size of the cycle inventory or a result of the
production, transportation, or purchase of material in large lots.
• Safety Inventory: Stand-by inventory when demand exceeds the expectation. If world is
perfectly predictable, only cycle inventory would be needed. As demand is uncertain, and
may exceed expectation, companies hold safety inventory to satisfy an unexpectedly high
demand. Holding safety stock in a single location instead of multiple locations.
• Seasonal Inventory: Inventory that is build up to deal with seasonal variability in demand.
Companies using seasonal inventory build-up inventory in periods of low demand and
store it for periods of high demand, when they will not have the capacity to produce all
that is demanded.
The cost and value of inventory increase as materials move down the supply chain.
The flexibility of inventory decreases as materials move down the supply chain.
 Controlling inventory is far from easy. Thus positioning inventory far from
customer results more efficiency and low cost.
  Positioning inventory close to customer results more responsiveness and high
cost.
Transportation, Packaging and Material Handling must also be considered.
Inventory Policy

A high level of product availability provides a high level of responsiveness but increase costs
because much inventory is held but rarely used. In contrast, a low level of product availability
lowers inventory holding cost but results in a higher fraction of customer who are not served
on time.
Inventory policy ensures that inventory is properly controlled and costed, and losses or
shortages are prevented It should be aimed at lowering the holding costs through higher
inventory rotation, but without triggering substantial stock-outs and backorders, caused by
demand peaks and / or lead time delays.
• Inventory-related metrics: The above decisions affect the costs of goods sold, the assets
held by the supply chain, the C2C cycle, and the responsiveness. Managers should track
inventory-related metrics that affect supply chain performance:
C2C cycle time: C2C cycle time is a high level matric that includes inventories, accounts
payable, and receivables.
Average inventory: measure the average amount of inventory carried. Average inventory
should be measured in units, days of demand, and financial value.
Inventory turn: measure the number of time inventory turns over in a year. It is the ratio of
average inventory to either the cost of goods sold or sales.
Product with more than a specified number of days of inventory: identifies the products for
which the firm is carrying a high level of inventory. This metric can be used to identify
products that are in oversupply or identify reasons that justify the high inventory, such as
price discounts, or being a very slow mover.
Average replenishment batch size: measures the average amount in each replenishment order.
The batch size should be measured by SKU in terms of both units and days of demand. It can
be estimated by averaging over time the difference between the maximum and the minimum
inventory (measured in each replenishment cycle) on hand.
Average safety inventory: measures the average amount of inventory on hand when a
replenishment order arrives. Average safety inventory should be measured by SKU in both
units and days of demand. It can be estimated by averaging over time the minimum inventory
on hand in each replenishment cycle.
Seasonal inventory measures the amount by which the inflow of product exceeds it sales
(beyond cycle and safety inventory). Seasonal inventory is built up solely to deal with
seasonal changes in demand.
Fill rate measures the fraction of orders/demand that were met on time from inventory. Fill
rate should not be averaged over time but over a specified number of units of demand (say,
every thousand or million, etc.).
Fraction of time out of stock measures the fraction of time that a particular SKU had zero
inventory. This fraction can be used to estimate the demand during the stock out period.
Obsolete inventory: measures the fraction of inventory older than a specified obsolesce date.

3. Transportation:
Transportation moves products/inventory from point to point (between stages) in a supply
chain. Transportation can take the form of many combinations of modes and routes, each with
its own performance characteristics.
The Role Inventory Play in the Supply Chain: Transportation affects both responsiveness and
efficiency. Faster transportation is more expensive but allows a supply chain to be more
responsive. As a result, the supply chain may carry lower inventories and have fewer facilities.
For example,

- A firm selling high value items such as pacemaker may use rapid transportation to be
responsive while centralizing its facilities and inventory to lower cost.
- In contrast, a firm selling low-value, high demand items like light bulbs may carry a fair
amount of inventory close to the customer but then use low cost transportation such as sea,
rail and dull trucks to replenish this inventory frim plants located in low cost countries.

Component of Transportation Decisions: There are several key components of transportation

that companies analyze when they design their supply chain:

• Transportation Network:

 The transportation network is the collection of transportation modes, location, and routes
along which product can be shipped.
 A company must decide
- Whether transportation from a supply source will be direct to the demand point or will go
through intermediate consolidation points,
- Whether or not multiple supply or demand points will be included in a single run.
• Choice of Transportation Mode:

 The mode of transportation is the manner in which a product is moved from one location
in the supply chain network to another.
 Companies can choose among air, truck, rail, sea, and pipelines as modes of transport of
products. Today, information goods can also be sent via the Internet.
 Each mode has different characteristics with respect to the speed, size, of shipments, cost
of shipping, and flexibility that lead companies to choose one particular mode over the
others.
• Transportation Related Matrices: Inbound transportation decisions affect the costs of a good

sold, whereas outbound transportation costs are the part of selling, general, and
administrative expenses. Thus, transportation costs affect the profit margin.
Mangers can track the following transportation-related metrics that affect supply chain
performance:
 Average Inbound Transportation Cost: typically measures the cost of bringing a product into
a facility. It is often measured as a percentage of cost of goods sold (COGS).
 Average Incoming Shipment Size: measures the average number of units in each incoming
shipment at a facility.
 Average Inbound Transportation Cost Per Shipment: measures the average transportation
cost of each incoming delivery.
 Average Outbound Transportation Cost: measures the cost of sending product out of a
facility to the customer. It is often measured as a percentage of sales.
 Average Outbound Shipment Size: measures the average number of units or dollars on each
outbound shipment at a facility.
 Average Outbound Transportation Cost Per Shipment: measures the average transportation
cost of each outgoing delivery.
 Fraction Transported By Mode: measures the fraction of transportation using each mode of
transportation.
Cross-functional Drivers
1. 1nformation:

Information consists of data and analysis concerning facilities, inventory, transportation,

costs, prices, and customers throughout the supply chain.
Information is potentially the biggest driver of performance in the supply chain because it
directly affects each of the other drivers.
Information presents management with the opportunity to make supply chains more
responsive and more efficient simultaneously.
For example, Seven-Eleven Japan has used information to better match supply and demand
and improve product availability while decreasing inventories. The result is a high level of
responsiveness to customer demand while production and replenishment costs are lower.
Through information
sharing a firm can
collect and share Increase Decrease
timely accurate data Responsiveness Inventories
about customers’
needs.

Customer gets Minimize

Accurately forecast
products at the right
products’ demand Costs
time

Supply products
early/ Improve Increase
Less lead time
products’ availability efficiency
at store

Components of Information Decisions

a) Push Versus Pull

While designing process of the supply chain, a firm must determine whether these processes
are part of the pull or push phase in the supply chain as different systems require different types
of information.
- Push systems start with forecasts that are used to build the master production schedule
and roll it back, creating schedules for suppliers with part types, quantities, and delivery
dates.
- Pull systems require information on actual demand to be transmitted extremely quickly
throughout the entire chain so that production and distribution of products can reflect the
real demand.
b) ***Coordination and Information Sharing:

Supply chain coordination occurs when all stages of a supply chain work toward the objective
of maximizing total supply chain profitability based on shared information. Lack of
coordination can result in a significant loss of supply chain surplus. Coordination among
different stage in supply chain requires each stage to share appropriate information with others.
For example, if a supplier is to produce the right parts in a timely manner for a manufactured
in a pull system, the manufacturer must share demand and production information with the
supplier.

Sharing of information is natural between parties that trust each other. Trust involves a belief
that each stage is interested in the other’s welfare and will not take actions without considering
their impact on the other stages. When stages trust each other, they are more likely to take the
other party’s objectives into consideration when making decisions.

c) Sales and Operation Planning:

Sales and operation planning (S&OP) is the process of creating an overall supply chain plan
(production and inventories) to meet the anticipated level of demand (sales). The S&OP
process starts with sales and marketing communicating their needs to the supply chain, which
in turn, communicates to sales and marketing whether the needs can be met, and at what cost.
d) Enabling Technology (What Is Necessary For Ensuring Proper Information Sharing?)

i. Electronic data interchange: Electronic data interchange (EDI) is the computer-to-

computer exchange of business information between companies. It facilitates the
placement of instantaneous, paperless purchase orders with supplies. It is used for
sharing transactional data, order processing, inventory controlling, and quick access to
information with in supply chain network. EDI is also tremendously beneficial in
counteracting the Bullwhip effect and supply chain organizations can overcome the
distortions and exaggerations in supply and demand information by using technology
to facilitate real-time sharing of actual demand and supply information. The wide
adoption of EDI in the business world facilitates efficiency and cost reduction.
ii. Internet: Internet conveys much more information using a standard infrastructure
allowing supply chains to improve both efficiency and responsiveness
iii. Enterprise Resource Planning: Enterprise resource planning (ERP) system t provides
transactional tracking and global visibility of information in a company and across its
supply chain. This real time information helps a supply chain improve the quality of
operational decisions.
iv. Supply Chain Management software: Supply chain software uses the information in
ERP systems to provide analytical decision support in addition to the visibility of
information. ERP systems show a company what is going on, whereas SCM systems
help a company decide what it should do.
v. Trust
 e) Information-Related Metrics

Forecast Horizon: identifies how far in advance of the actual event a forecast is made. The
forecast horizon must be greater than or equal the lead time of the decision that is driven by
the forecast.
Frequency of Update: identifies how frequently each forecast is updated. The forecast should
be updated somewhat more frequently than a decision will be revisited, so large changes can
be flagged and corrective action taken.
Forecast Error: measures the difference between the forecast and actual demand. The forecast
error is a measure of uncertainty and drives all responses to uncertainty, such as safety
inventory or excess capacity
Seasonal Factors: measures the extent to which the average demand in a season is above or
below the average in the year.
Variance from Plan: identifies the difference between the planned production/inventories and
the actual values. These variance can be used to raise flags that identify shortages and
surpluses.
Ratio of Demand Variability To Order Variability: measures the standard deviation of incoming
demand and supply orders placed. A ratio less than 1 potentially indicates the existence of the
bullwhip effect.
Sourcing:
Sourcing is the set of business processes required to purchase goods and services.
A firm must decide
- Whether a particular supply chain activity such as a production, storage, transportation, or
the management of information will be executed by a responsive or efficient source, and
- Whether this source will be internal to the company or a third party.
Sourcing decision should aim to provide the appropriate level of responsiveness at the lowest
cost.
Components of Pricing Decisions: There are several key components of pricing decisions that
influence supply chain performance:
• In-house or Outsource: The most significant sourcing decision for a firm is
- Whether to perform in house or outsource it to a third party
- Whether to outsource all of it, outsource only the responsive component, or outsource only
the efficient component.
Outsourcing to a third party is meaningful if the third party raises the supply chain surplus more
than the firm can on its own. In contrast, a firm should keep a supply chain function in-house
 if the third party cannot increase the supply chain surplus or if the risk associated with
outsourcing is significant.
• Supplier Selection: Firms must decide on the number of suppliers they should have for a
particular activity.

More More More

High Cost
Suppliers Flexibility Responsiveness

There are some common factors to be considered for supplier selection, such as cost, quality,
delivery time, service, risk, convenience, reputation etc.
• Procurement: Procurement is the process of obtaining goods and services within a supply
chain. Firms must decide on centralized procurement or decentralized procurement with a
goal of increasing supply chain surplus.
Centralized Procurement Decentralized Procurement

With a centralized procurement system, all purchasing With decentralized systems, each office, division, or
goes through one central department. Department project manager has purchasing power to order
managers submit requests for approval, and the supplies at their own discretion without seeking
procurement staff retains control of the budget.
approval.
Pros: Pros:
- When all purchases require approval, - Supplies are purchased by each department by
unnecessary spending is eliminated, or at least understanding the demand of the department to
minimized. meet immediate and long-term needs.
- Using centralized data has the advantage of - Order processing is fast and easy, with no wait
allowing budget experts to compare suppliers and for approval. If a need arises, it can be sourced
make advantageous deals based on volume, even and filled immediately.
across multiple locations.
- Purchases are made by specialists armed with
comprehensive information about suppliers, their
history, and their competitors. They have the
knowledge and skills to negotiate better deals.
Cons: Cons:
Lagging processing and delivery times may occur Orders are not made by experts who have the
when an emergency situation arises for which a knowledge and skill to evaluate suppliers,
department needs immediate supplies. consolidate orders, and negotiate better deals.
• Sourcing-related metrics:

Sourcing decisions have influence on the cost of goods and accounts payable. The performance
of the source also affects quality, inventories, and inbound transportation costs. A manager
must track the following sourcing-related metrics that affect supply chain performance:
- Days payable outstanding: measures the number of days between when a supplier
performed a supply chain activity and when it was paid for.
- Average purchase price: measures the average price at which a good or service was sold
during the year. The average purchase price should be weighted by the quantity purchased
at each price
- Range of purchase price: measures the fluctuation in purchase price during a specified
period. The goal is to identify if the quantity purchased correlated with the price.
- Average purchase quantity: measures the average amount purchased per order. The goal is
to identify whether a sufficient level of quantity is stocking across locations when placing
an order.
- Supply quality: measures the quality of products supplied;
- Supply lead time: measures the average time between when an order is placed and when the

product arrives. Long lead times reduce responsiveness and add to the inventory the supply
chain must carry.
- Percentage of on-time deliveries: measures the fraction of deliveries that were on time;
- Supplier reliability: measures the variability of the supplier’s lead time as well as the
delivered quantity according to plan. Poor supplier reliability hurts responsiveness and adds
to the amount of inventory the supply chain must carry.

Pricing:
• ***Pricing is the process by which a firm determines how much to charge for its goods and

services that it makes available in the supply chain.

• Pricing affects the customer segments that choose to buy products, as well as influencing
customers’ expectations. This directly affects the supply chain in terms of the level of
responsiveness required as well as the demand profile that the supply chain attempts to
serve.
• Pricing can be used to match supply and demand, especially when the supply chain is not
very flexible.
 Components of Pricing Decisions: There are several key components of pricing decisions that
influence supply chain performance:
a. Pricing and Economies of Scale:

A firm must decide how to price its activities according to its economy of scale. Economies of
scale refer to reduced costs per unit that arise from increased total output of a product.
Therefore, any cost reduction that is achieved allows a firm to pass on savings in the form of
lower prices.

b. Everyday Low Pricing Versus High-Low Pricing***

Everyday Low Pricing High-Low Pricing

Every Day Low Pricing, is a pricing strategy in which High-low pricing is a method of pricing where
firms promise consumers consistently low prices on products and services are offered by the firm are
products without having to wait for sale events. In such a regularly priced higher than competitors.
pricing strategy, a firm sets a low price and maintains However, through sale events or promotion steep
them over a long time-horizon (given that product costs discounts on selected products are offered. This
remain unchanged). causes a peak during a discount week.
EDLP works well for High Low Pricing works best for
- Consumer disposables, such as toothpaste, soap, or - Seasonal products/services such as tourism
groceries especially at a retail level, as it offers or highly perishable products such as
consumers a bundle of low prices on a range of goods flowers,
that they buy on a regular basis. - Where demand is so high that price increases
- Consumer demand is relatively unaffected by large are warranted, or
seasonal variations. - When demand declines to the point that price
- The company is able to sustain a low price discounts are needed to reduce inventories.
competitive position through a cost advantage.
- Suppliers are able to provide just-in-time delivery.
Procter & Gamble, Wal-Mart, Food Lion, and Winn- There are many big firms using this type of
Dixie are firms that have implemented or championed pricing strategy (ex: Reebok, Nike, Adidas).
EDLP.
EDLP strategies generally result in lower fixed costs, High-low pricing strategies generally result in
since they require less advertising for promotional prices. lower variable costs, since promotional retailers
EDLP can also result in more predictable consumer can sell more products by offering discounts.
demand and therefore fewer stocking and supply-chain They are able to take advantage of surplus at the
problems. wholesale level and also eliminate excess
inventory at the retail level.
Advantages: Supply chain become responsive are with deep,
- A consistent, competitive price lead to an even and temporary price cuts than they are to "everyday
predictable demand for products. low price"
- Inventory costs and promotional costs are reduced.
- The cost advantages of steady demand and better
inventory management will lead to even lower prices.
- Thus supply chain become efficient with everyday
low price"

c. Fixed Price versus Menu Price: A firm must decide whether to charge a fixed price for
its supply chain or menu price.
Fixed Price Menu Price

Fixed pricing is charging a fixed Menu pricing means having a menu with prices that vary with some other
price for supply chain activities attribute, such as the response time or location of delivery. If marginal
(not subject to bargaining). supply chain costs or the value to the customer vary significantly along
some attribute, it is often effective to have a pricing menu.
d. Pricing-related metrics

Pricing affects revenues, production costs, and inventories, depending on its impact on
customer demand. A manager should track the following pricing-related metrics. With menu
pricing, each metric should be tracked separately for each segment in the menu.
Profit Margin: measures profit as a percentage of revenue. A firm needs to examine a wide
variety of profit margin metrics to optimize its pricing, including dimensions such as type of
margin (gross, net, etc.), scope (SKU, product line, division, firm), customer type, and others.
Days Sales Outstanding: measures the average time between when a sale is made and when the
cash is collected.
Incremental Fixed Cost Per Order: measures the incremental costs that are independent of the
size of the order, such as changeover costs at a manufacturing plant or order processing or
transportation costs that are incurred independent of shipment size at a mail-order firm.
Incremental Variable Cost per Unit: measures the incremental costs that vary with the size of
the order, such as picking costs at a mail-order firm or variable production costs at a
manufacturing plant.
Average Sale Price: measures the average price at which a supply chain activity was
performed in a specific period. The average should be obtained by weighting the price with
the quantity sold at that price.
Average Order Size: measures the average quantity per order.
Range of Sale Price: measures the maximum and the minimum of sale price per unit over a
specified time horizon.
Range of Periodic Sales measures the maximum and minimum of the quantity sold per period
(day/week/month) during a specified time horizon.
Summary

6. Pricing Supply chain become Supply chain become efficient

responsive are with deep, with everyday low price"
temporary price cuts.