26 | R i g h t C h a i n ™ requirements of the customer service policy. Our RightChain™ definition of total logistics cost includes inventory carrying cost, lost sales cost, total transportation costs, and total warehousing costs. The RightChain™ Supply Chain Integration Model uses optimization to reflect the mission of the supply chain overall and to determine the proper role and schedule for each SCL activity. The role of the contributing SCL activities is to meet the supply chain schedule at the lowest possible cost while meeting their quality and response time requirements.

Figure 6. The RightChain™ Supply Chain Integration Model

Supply Chain Simplification We have a large semi-conductor client in the Silicon Valley. The first project they retained us to conduct was an overall assessment of their supply chain. Their RightChain™ score was 71%, a C-. When I shared that with their COO, he was

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