RightChain Nodes User Guide

5.7 What are the KEY COST, SERVICE, AND PERFORMANCE FACTORS monitored for supply chain network performance in RightChain Nodes?

FUTURE DCs 1. Future DCs . The target number of distribution centers or warehouses in the optimal solution.

SERVICE TIMES 1. Half Day. The percent of the "activity" delivered within a half-day. The unit of measure for "activity" is selected by the user, and typically is a unit of measure like weight, cube, units, or lines. 2. Same Day. The percent of the "activity" delivered on the same day. The unit of measure for "activity" is selected by the user, and typically is a unit of measure like weight, cube, units, or lines. 3. 1 Day. The percent of the "activity" delivered within 24 hours. The unit of measure for "activity" is selected by the user, and typically is a unit of measure like weight, cube, units, or lines. 3. 2 Days. The percent of the "activity" delivered within two days. The unit of measure for "activity" is selected by the user, and typically is a unit of measure like weight, cube, units, or lines. COSTS 1. Transport Cost. The total cost of transportation based upon the type of rate selected (universal or table) and it's corresponding unit of measure (e.g. miles, pounds, cube, pound miles, etc.). 2. I nventory Carrying Cost. The cost of "carrying" the network's inventory investment; computed as the product of the inventory carrying rate specified in the scenario and the network's inventory investment. 3. Total Logistics Cost. The sum of the scenario's transportation cost and inventory carrying cost. 4. Footprint. The estimated square footage occupied by facilities in the network, computed as the product of the network's inventory investment and the storage density of the facilities. 5. Inventory Investment. The estimated inventory in the network based upon the number of network facilities and the portion of inventory allocated to safety stock, lot size, and pipeline inventory. 6. % Incremental Inventory . The estimated increase or decrease in the network's inventory investment compared to the baseline inventory investment.

RightChain Nodes

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