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fix dollar -> euro as the unit of money
(fix dollar -> euro as the unit of money) |
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'''Inventory-Euro-Days (IED)''' | '''Inventory-Euro-Days (IED)''' | ||
Effectiveness is calculated in Inventory | Effectiveness is calculated in Inventory Euro-Days. | ||
* Calculated as: | * Calculated as: Euro value of inventory × Number of days held | ||
* Example: If $100,000 worth of products sits in warehouse for 30 days, this creates 3,000,000 inventory- | * Example: If $100,000 worth of products sits in warehouse for 30 days, this creates 3,000,000 inventory-euro-days | ||
* Lower IDD indicates higher effectiveness. The ultimate goal would be 0 IDD. | * Lower IDD indicates higher effectiveness. The ultimate goal would be 0 IDD. | ||
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'''Throughput-Euro-Days (TED)''' | '''Throughput-Euro-Days (TED)''' | ||
* Calculated as: Value of late orders × Number of days late | * Calculated as: Value of late orders × Number of days late | ||
* Example: A $50,000 order delivered 5 days late results in 250,000 throughput- | * Example: A $50,000 order delivered 5 days late results in 250,000 throughput-euro-days | ||
* Lower TDD indicates higher reliability. The ultimate goal here too, is 0. | * Lower TDD indicates higher reliability. The ultimate goal here too, is 0. | ||