Important Formulas in Supply Chain Management

Important formulas in supply chain

1. Inventory Accuracy:
Formula: Inventory Accuracy = (Actual Quantity) / (Book Quantity)
2. Storage Utilization Rate:
Formula: Storage Utilization Rate = (Inventory Volume) / (Total Warehouse Volume)
3. Inventory Days of Supply:
Formula: Inventory Days of Supply = (On-Hand Inventory Value) / (Annual COGS / 365)
4. Total Order Cycle Time:
Formula: Total Order Cycle Time = (Time Order Received – Time Order Placed) / (Total Orders Shipped)
5. Internal Order Cycle Time:
Formula: Internal Order Cycle Time = (Time Order Shipped – Time Order Received) / (Number of Orders Shipped)
6. Perfect Order Percentage:
Formula: Perfect Order Percentage = (% On-Time Orders) × (% Complete Orders) × (% Undamaged Orders) × (% Orders with Correct Documentation)
7. On-Time Shipping Percentage:
Formula: On-Time Shipping Percentage = (Number of Orders Shipped On Time) / (Total Number of Orders Shipped)
8. Order Fill Rate:
Formula: Order Fill Rate = (Total Orders Filled to Customer Request) / (Total Orders Filled)
9. Line-Item Fill Rate:
Formula: Line-Item Fill Rate = (Total Order Lines Filled Complete) / (Total Order Lines Filled)
10. Orders Picked Per Hour:
Formula: Orders Picked Per Hour = (Total Orders Picked and Shipped) / (Total Hours Worked in Picking and Shipping)
11. Lines Picked and Shipped Per Hour:
Formula: Lines Picked and Shipped Per Hour = (Total Order Lines Picked and Shipped) / (Total Hours Worked in Picking and Shipping)
12. Distribution Costs (As a Percentage of Sales):
Formula: Distribution Costs (Percentage of Sales) = (Total Distribution Costs) / (Total Sales)
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