THE OPTIMAL ROLE OF OPTIMAL INVENTORY IN SUPPLY CHAINS AND BUSINESS

RightChain™ Inventory Optimization for Coca-Cola Consolidated

Average Inventory Value (AIV)

Inventory Carrying Cost (ICC)

Inventory Performance Index (IPI)

Inventory Policy Cost (IPC)

Lost Sales Cost (LSC)

Gross Margin (GM)

Inventory Value Added (IVA)™

RightChain™ Turns

Unit Fill Rate M a x

Turns

GMROI

Lost Sales

Lost GM

SKU or Category

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

1,354 1,369 1,377 1,386 1,395 1,405 1,417 1,432 1,441 1,454 1,468 1,479 1,495 1,510 1,515 1,521 1,529 1,541 1,543 1,548 1,554 1,562

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

406 411 413 416 418 422 425 430 432 436 440 444 449 453 454 456 459 462 463 464 466 469

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

393 314 275 236 196 157 118

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

799 725 688 651 615 579 543 508 491 475 464 459 456 457 458 459 460 463 464 465 466 469

2.4 2.4 2.4 2.3 2.3 2.3 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

393 471 510 550 589 628 667 707 726 746 761 769 777 781 782 783 783 784 784 784 785 785

0.29 0.34 0.37 0.40 0.42 0.45 0.47 0.49 0.50 0.51 0.52 0.52 0.52 0.52 0.52 0.51 0.51 0.51 0.51 0.51 0.51 0.50

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

(14)

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2,018 1,614 1,412 1,211 1,009

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

393 314 275 236 196 157 118

1.20 1.42 1.53 1.64 1.75 1.85 1.95 2.04 2.09 2.12 2.15 2.15 2.15 2.14 2.14 2.13 2.12 2.11 2.10 2.10 2.09 2.08

50.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 92.50% 95.00% 97.00% 98.00% 99.00% 99.50% 99.60% 99.70% 99.80% 99.90% 99.91% 99.93% 99.95% 99.97% Current

026417

60 97

#N/A

134 170 206 242 277 294 310 321 326 329 328 327 326 325 322 321 320 319 316

0

# of SKUs

1

807 605 404 303 202 121

Forecast Annual Demand (FAD)

221

79 59 39 24 16

79 59 39 24 16

Leadtime Forecast Error

78%

Unit Selling Price (USP, $/case)

$

18.26

81 40 20 16 12

Unit Inventory Value (UIV)

8 4 3 2 2 1 1 1 0 0

8 4 3 2 2 1 1 1 0 0

$

14.71

Shortage Factor (SF)

19.45%

8 4 4 3 2 1

Leadtime (L, Days)

7.00

Cost per Setup or PO

$

308.00

Inventory Carrying Rate (ICR)

30%

$

$

$

r

FAD Rank Percentile

Current

Current

Current

Current

Current

Current

Current

Current

Current

Current

Current

26% 99.60%

$

1,044

$

313

$

3

$

901

3.1

$

688

0.38

$

187

$

16

$

3

0.38

RightChain™ Incorporated

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