SCM Formula Reference
Supply Chain Formula Cheat Sheet
All the critical formulas you need for your SCM certification exam.5 formulas are free — unlock all 25 with premium.
Inventory Management
Economic Order Quantity (EOQ)
EOQ = \sqrt{\frac{2DS}{H}}
D = Annual demand, S = Ordering cost, H = Holding cost per unit per year
Reorder Point
ROP = d \times L + SS
d = Average daily demand, L = Lead time, SS = Safety stock
Safety Stock
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Inventory Turnover
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Days of Supply
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Fill Rate
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Demand Forecasting
Simple Moving Average
SMA_n = \frac{\sum_{i=1}^{n} D_i}{n}
Average of last n periods
Weighted Moving Average
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Exponential Smoothing
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Mean Absolute Deviation
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Tracking Signal
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Procurement & Sourcing
Total Cost of Ownership
TCO = P + O + C + M + D
P=Purchase, O=Ordering, C=Carrying, M=Maintenance, D=Disposal
Supplier Lead Time Variability
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Price Variance
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Transportation & Logistics
Transportation Cost per Unit
\text{CPU} = \frac{\text{Total Transport Cost}}{\text{Units Shipped}}
Basic unit cost of transportation
On-Time Delivery Rate
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Vehicle Utilization
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Cost per Mile
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Production & Operations
Cycle Time
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Throughput
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Overall Equipment Effectiveness
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Takt Time
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Financial Metrics
Return on Assets
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Cash-to-Cash Cycle
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Perfect Order Rate
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