Loops in the network

A loop in the network structure is a circular flow. Cost To Serve Analysis decomposes the network down to the BOM level and detects loops. Simple two-node loops, such as shown below, are handled during Cost To Serve Analysis:

If more complex loops with 3 or more nodes are detected during Cost To Serve Analysis, the sub-model containing the complex loop is skipped and the loop is reported in the Cost To Serve Network Loops output table. It is also reported as an "elementary circuit" in the Launch Pad Run Log.

When evaluating loops, Cost To Serve Analysis considers BOMs. If a BOM has a complex loop, it is also reported in the Cost To Serve Network Loops. This means that loops can be evaluated in the overall network and within production. For example, assume the following network which includes BOMs at various sites:

The paths from supplier to customer are decomposed based on BOMs at the sites:

While the original network looked as though it contained loops, when the network is decomposed at the BOM level, there are no loops.