Product Suite

Supply Chain Glossary - S

Supply Chain Glossary - S

SBU

Abbreviation for strategic business unit.

A system of group incentives on a companywide or plantwide basis that sets up one measure that reflects the results of all efforts. The universal standard is the ratio of labor costs to sales value added by production. If there is an increase in production sales value with no change in labor costs, productivity has increased while unit cost has decreased.


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