Coverage

Coverage is equal to this site's immediate lead time, plus the service time quoted by its source, minus the service time this site quotes to its customer or downstream sites. The following example illustrates the coverage calculation. Assume a set of stocking sites:

Coveragei = ILTi + STi-1 - STi

where:

ILTi = Immediate Lead Time (i)

STi-1 = Service Time (i-1)

STi = Service Time (i)

For example, assume the following network:

CoverageMFG = ILTMFG - STMFG = 1 - 1 = 0

CoverageDC1 = ILTDC1 + STMFG - STDC1= 3 + 1 - 2 = 2

CoverageDC2 = ILTDC2 + STDC1 - STDC2= 2 + 2 - 0 = 4

Total Coverage = ILTMFG - STMFG + ILTDC1 + STMFG - STDC1 + ILTDC2 + STDC1 - STDC2 =

ILTMFG + ILTDC1 + ILTDC2 - STDC2 =

Max Lead Time of DC2 = 6

Last modified: Wednesday May 15, 2024

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