Role of metrics measurement systems in food distribution

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Metric systems, learning system and knowledge management systems have become integral tools for the success of an innovative firm (Hauser & Katz, 1998). This food distribution company is a kind of virtual organization, which leads innovation to enhance its profitability. By means of the following paper, I am going to recapitulate the various limitations and constraints that are connected with the metric system, learning system and knowledge management system.

Metric system is the most common system of measurement utilized throughout the world. This system plays a crucial role in finding out the accurate measurement. It is defined as the standard system of measurement that is mainly based on the various measurements or performance criteria i.e. work quality, honesty, reliability, learning ability, and sense of responsibility (Hauser & Katz, 1998). It is an internationally realized decimalized measurement system, which not only arrives at the measurements more accurately, but also helps in comparing the actual target with the standard target in order to assess the deviations i.e. positive or negative (Brown, 1996).

For this food distribution company, in order to measure the performance and innovations it is necessary for the firm use some metric measurement system. The selected three metrics for Food Distribution Company are as follow:
Inventory Turnover: This metrics measures the number of times the company's inventory, cycles over per year. The inventory turnover is calculated by dividing annual cost of sales by the average inventory level. With the help of this metric, the management can measure the financial performance and profitability of Food Distribution Company (Hauser & Katz, 1998).

Cycle time: Cycle time metrics measures the amount of time taken to complete a particular task in a company (Hugos, 2003). As a virtual organization it is necessary for distribution firm to ...