ABSTRACT
Transportation is used to find the optimal balance between costs, inventory, and service levels. This chapter illustrates the mathematical formula of calculating the Weighted Average Cost of Capital (WACC). The transportation lead-time is defined as the time between the pickup of a shipment from one place until the delivery at another place. Other words used for lead-time are Turn Around Time (TAT), Transit Time (TT), and transportation time. The chapter describes different types of location and flow types, although the exact definitions and characteristics can differ per business and type of goods (spare parts, general cargo, and food). The transportation process at inbound is limited as there are more warehouse activities such as unloading, put-away, sorting, repacking, and putting on stock. Incompleteness and/or incorrectness must be mentioned on the transportation document or electronic device. The chapter shows the typical phases of a transportation flow.
