Final answer:
Order cycle time is the time from when a customer places an order until it is delivered to them, supply chain days of inventory refers to the average number of days that stock is held within a supply chain, and lead time for customer order changes is the amount of time available to customers to make changes to their orders before they are shipped.
Step-by-step explanation:
The supply chain measures mentioned are all important in evaluating and managing the efficiency of a supply chain.
Order cycle time:
Order cycle time is the time taken from when a customer places an order until it is delivered to them. It includes the time taken for order processing, picking and packing, and transportation. For example, if a customer places an order on Monday and receives it on Thursday, the order cycle time would be three days.
Supply chain days of inventory:
Supply chain days of inventory refers to the average number of days that stock is held within a supply chain. It is calculated by dividing the total value of inventory by the cost of goods sold per day. For instance, if a company has $1,000,000 worth of inventory and the cost of goods sold per day is $10,000, the supply chain days of inventory would be 100 days.
Lead time for customer order changes:
The lead time for customer order changes is the amount of time available to customers to make changes to their orders before they are shipped. It ensures flexibility and responsiveness in the supply chain. This measure is calculated by subtracting the order cycle time from the total lead time. For example, if the total lead time is five days and the order cycle time is three days, the lead time for customer order changes would be two days.
These measures are internal to the supply chain as they are calculated and managed within the company.