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Operations KPIs, Advanced

Parts Lead Time Cost

Cost of long supplier lead times: vehicle downtime cost during the wait + safety-stock carrying cost to mitigate.

Formula: annual_lead_time_downtime_cost = annual_critical_parts_orders * avg_wait_days * downtime_cost_per_day

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Cost of long supplier lead times: vehicle downtime cost during the wait + safety-stock carrying cost to mitigate.

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Annual Lead-Time Downtime Cost
AED 252,000.00

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