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Measurements Formula for the Logistics Department



The logistics function is composed of production scheduling, purchasing, materials handling, and distribution. These areas are all central to the smooth functioning of a company’s production processes. A failure in any of these areas can severely impact or even halt production, so this is a prime area in which to set up and maintain a rigorous system of measurement tracking. The 26 measurements formula listed in this post are intended to measure the key operational aspects of logistics and should be measured on a trend line to ensure that management can spot operational difficulties as soon as they arise.



The measurements discussed are:

Production Schedule Accuracy
Economic Order Quantity
Number of Orders to Place in a Period
Economic Production Run Size
Raw Material Inventory Turns
Raw Material Content
Finished Goods Inventory Turns
Obsolete Inventory Percentage
Percentage of Inventory > XX Days Old
Percentage of Returnable Inventory
Inventory Accuracy
Percentage of Certified Suppliers
Electronic Data Interchange
Supplier Percentage
On-Time Parts Delivery Percentage
Purchased Component Defect Rate
Incoming Components Correct
Quantity Percentage
Percentage of Actual Payments
Varying from Purchase Order Price
Percentage of Purchase Orders
Issued below Minimum Dollar Level
Proportion of Corporate Credit Card Usage
Percentage of Receipts Authorized by Purchase Orders
Freight Audit Recovery Ratio
Picking Accuracy for Assembled Products
Average Time to Ship
On-Time Delivery Percentage
Percentage of Products Damaged in Transit
Percentage of Sales through Distributors


Here is the measurement formula list:

Logistic Dept Measurement Formula-1

Logistic Dept Measurement Formula-2

Logistic Dept Measurement Formula-3

Logistic Dept Measurement Formula-4

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Engineering Department

Measurements and Ratios For Production Department

Measurements and Ratios For Sales Departments

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