WHAT ARE THE MOST IMPORTANT KPIs (“KEY PERFORMANCE INDICATORS”) FOR SUPPLY CHAIN MANAGEMENT AN OPERATIONS? In this post we will explain the most important metrics that should be defined, monitored and control for the supply chain management and operations business function. Please note that operations management according to Krajewski, Ritzman, & Malhotra (2013) refers to “the systematic […]
SG&A (“Selling, General and Administration expenses”) Costs can be classified under 3 categories: If they depend on the production/units sold, these costs are considered as variable. IN the case they do not depend on the production output or units sold, they are called fixed costs. SG&A expenses are fixed costs from an operational point of […]
CAPM: CALCULATION OF THE COST OF EQUITY (“Ke”) OR THE MINIMUM YEARLY RETURN IN PERCENTAGE REQUIRED BY AN INVESTOR IN A PROJECT, USING THE CAPITAL ASSET PRICING MODEL Let’s assume that we are a group of entrepreneurs that are founding a start-up project in Spain. The entrepreneurs want to enter as shareholders of the company, […]
WHAT IS THE FRENCH AMORTIZATION METHOD OF A BANKING LOAN In the following post it will be explained how to solve a banking loan following the French amortization method that is widely used in the financial industry. The main characteristic of this methodology is that the installments or payments are always a fixed amount (“C”) […]