APPLIED EXERCISES OF LOGISTICS PERFORMANCE INDICATORS - KPI`S.

Esp. Julián Alberto Osorio Ramírez

INTEP Teacher.

A. Orders Delivered on Time:

1. Exercise:

The automotive parts supplier company DISTRICAR LTDA, received a total of 198,000
purchase orders during the period from January to December 2019. Of this total of orders,
102,800 orders arrived at their clients' facilities, within the agreed period and on the
established dates.

It is requested:

Describe the indicator.

State your formula.
Describe your application
Calculate and interpret said Indicator.

2. Complete Delivered Orders:

The examples presented below, and in general several of the contents in this guide, are
based on hypothetical data that do not necessarily reflect the reality of a company. They
have been developed in this way seeking greater clarity and simplicity.

3. Example of Complete Delivered Orders in References:

The supplying company INGENIERIA Y PROYECTOS SA received (5) five orders during the
month of February 2020. The following table shows for each of them the number of
references requested and the number of references delivered complete and to the client's
satisfaction:
 No. From order 1 2 3 4 5 totals

Number of 9 5 7 5 12 38
References
requested
Amount of 5 7 5 4 10 30
references
delivered complete

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

4. Exercise: Complete Delivered Orders in Product Units:

The Electrical Indupartes supplier company INDUPEL, received the previous month
(February/2020), (5) five orders, each of them with the following number of units:

No. From order 1 2 3 4 5 totals

Requested Units 1.500 2.600 1.500 3.200 2.000 10.800

Units delivered for 1.250 1.550 1.500 2.180 1.870 8.350
each order

The company received orders for a total of 10,800 units. But the units delivered in
response to these orders were only 8,350.

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

5. Exercise: Complete Delivered Orders in Number of Orders:

The supplier company YINCANA shipped a total of 147,000 purchase orders in the period
from January to December 2019. Of this total, it was evident that only 113,000 complete
orders arrived at the customer's facilities, which corresponded to both units and
references.

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

6. Purchase Order Cycle (Lead Time):

Exercise:

The computer parts supplier company ROLDAYORK, presented the following purchase order
cycles last month:

No. Of 1 2 3 4 5
Order
Cycle of
the 46 43.5 44 45 44
order of
buys
(business
days)

The average Purchase Order Cycle is 44.5 hours.

The five purchase order cycles presented in the table are calculated following the same
proposed parameters.

Below is a case that generates the data related to the last order:

The client places 1 purchase order on Tuesday, February 15 at 10:00 AM. After 2 hours,
the purchase order reaches the supplying company, and the product preparation process
begins for a period of 8 hours.

The next day, at 8:00 AM, the transporter picks up the merchandise and begins the
transportation process. The latter takes 1 day to deliver.

The order physically arrives at the customer's facilities on February 17, at 6:30 AM.

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

7. Hassle-Free Documentation:

Exercise:

The supplier company SUZUKI JAPON LTDA generated a total of 287,900 invoices in the
period from January to December of the year 2109. Of that total of invoices, 265,800 had
no problems and matched perfectly with the orders shipped.

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

B.INVENTORY MANAGEMENT INDICATORS

1.Inventory days:

Exercise:

During the period from January to March 2019, the company OSORIO R. SAS recorded a
cost of sales in the order of $1.78 billion for its core product category. The following
inventory costs were presented monthly at the end of the month.

Average
January 31 February 28 March 31 Inventory Cost

Cost $110.000.000 $145.000.000 $115.000.000 $125.000.000

of Inventory

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.
2. Inventory Shortages – Out Of stock

Exercise:

The company MEGADOVIOS CIA manages and distributes (7) seven types of products. In
the periodic monitoring and reviews carried out the previous week, the following was
found:
WEEKS AVERAGE
1 2 3 4 5 6 7 8

Number of
References 2 1 0 0 2 1 3 0
that
they had a
rupture
Number of
references 7 7 7 7 7 7 7 7
made
follow-up
Result 28.57 14.29 0 0 28.57 14.29 42.86 0 16.07
Diary (%)

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.

C. MANAGEMENT INDICATORS LOGISTICS

Distribution Costs:

Exercise:
The company MAZDA CORPORATION, in the period from January to December 2019, presented a
total of $198,000,000 in distribution costs, taking into account the totalization of the items
presented in the previous table.

The total packaging units shipped was 92,000. Annual sales reached a value of $1,750,000,000.
The impact of distribution costs on the company's operation was:

It is requested:

Describe the indicator.

State your formula.
Describe your application.
Calculate and interpret said Indicator.