Difference between revisions of "SCM Inventory"

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Overview
=Technology Roadmap=
 
==Roadmap Overview==


A supply chain management (SCM) - inventory system is a critical component of business operations that ensures efficient flows of materials and products from vendors to customers.  
A supply chain management (SCM) - inventory system is a critical component of business operations that ensures efficient flows of materials and products from vendors to customers.  
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Effective management systems provide the right products at the right time and place to meet growing customer demand. It is a critical aspect of modern business operations and plays a crucial role in achieving profitability and customer satisfaction.
Effective management systems provide the right products at the right time and place to meet growing customer demand. It is a critical aspect of modern business operations and plays a crucial role in achieving profitability and customer satisfaction.
=Technology Roadmap=
==Roadmap Overview==
The U.S. financial system processes millions of transactions each day to facilitate purchases and payments. In general terms, a payment system consists of the means for transferring money between suppliers and users of funds through the use of cash substitutes, such as checks, drafts, and electronic funds transfers.
A payment system is a system that exchanges / trades value by changing the ownership of money. It consists of a set of instruments, banking procedures, and, typically, interbank funds transfer systems that ensure the circulation of money. These systems allow for the processing and completion of financial transactions.
From the typical consumer’s perspective, making a payment is simple. A person swipes a card, clicks a button, or taps a mobile device and the payment is approved within seconds. However, the infrastructure and technology underlying the payment systems are substantial and complex. To simplify, a payment system has three parts (see Figure below).


[[File:US Payments v2.png|750px|frameless|center|Parts of the US Payment System as per the US Federal Reserve (https://fas.org/sgp/crs/misc/R45927.pdf]]
[[File:US Payments v2.png|750px|frameless|center|Parts of the US Payment System as per the US Federal Reserve (https://fas.org/sgp/crs/misc/R45927.pdf]]
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Based on our research, an overview of the US retail payment system can be seen in the following figure. The settlement is needed for finalizing money transfer using the central bank's accounts. The clearing service works by sending the payment message and offset the payments which are the reverse and the same amount. Most retail payments rely on these clearing and settlement.
[[File:Payment system_layer2.png|thumb|800px|center]]


[[File:Payment system_layer2.png|thumb|800px|center]]


==Design Structure Matrix (DSM) Allocation==
==Design Structure Matrix (DSM) Allocation==

Latest revision as of 13:56, 12 October 2023

Technology Roadmap

Roadmap Overview

A supply chain management (SCM) - inventory system is a critical component of business operations that ensures efficient flows of materials and products from vendors to customers.

Key Goals of the SCM – inventory management system are:

• Providing timely, complete, and accurate inventory levels to managements • Minimizing carrying costs while ensuring product availability. • Reducing stockouts and overstock situations. • Enhancing supply chain visibility and responsiveness. • Streamlining operations and reducing inefficiencies. • Lowering costs while maintaining service levels. • Meeting customer demand accurately and on time. • Adapting to changes in demand, supply, and market conditions.

Effective management systems provide the right products at the right time and place to meet growing customer demand. It is a critical aspect of modern business operations and plays a crucial role in achieving profitability and customer satisfaction.

Parts of the US Payment System as per the US Federal Reserve (https://fas.org/sgp/crs/misc/R45927.pdf

*image-source - U.S. Payment System Policy Issues: Faster Payments and Innovation, Congressional Research Service (2019)


Payment system layer2.png


Design Structure Matrix (DSM) Allocation

The design structure matrix for the Retail Payment System is depicted in the image below.

Payment System DSM

The following figure shows the tree structure of the Retail Payment System. Our roadmap focuses not on the wholesale payment system, but on the retail payment system. The API is optional and it is not included in all payment systems.

Payment System tree

Object Process Model (OPM)

The following picture shows the whole OPM for the retail payment system. These OPM diagrams in the picture are designed referring to the example of Appendix A in the book "Object-Process Methodology A Holistic Systems Paradigm" written by Dov Dori.

Payment System OPM WH.png


The following diagrams show each OPM for the retail payment system.

Payment System OPM SD.png


Payment System OPM TE.png


Payment System OPM A.png

Figures of Merit (FOM)

The table below show a list of FOMs by which can assess a Payment System:

Class Figure of Merit Units Metric
Performance Value of transactions processed per annum [US$] Monetary value of all transactions processed per annum.
Productivity Number of transactions processed per annum # of transactions processed per country, per individual or business client type Count of the number of transactions processed per annum.
Machine learning accuracy Weighted False Positive ratio <math>\sum_{i=1}^{Systems} Weight_i \frac{FalsePositives_i}{(FalsePositives_i + TrueNegatives_i)} </math>
Efficiency Average cost per transaction [US cents] The total Earnings Before Interest and Tax (Tax) divided by the Number of transactions processed per annum
Transaction settlement period [Seconds] The time lag between the payment initiation of the payment order and its final settlement.
Sustainability System downtime per year [Seconds] The seconds in a year is that the system is not online and processing successfully, i.e., not “up and running”.
Payment conversion rate [%] # of settled transactions per annum / # of attempted transactions per annum
Fraud prevention [%] # of fraudulent transactions / # approved transactions

Examples of FOM performance

History of Value of Transactions and Number of Transactions Figures of Merit
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