MIT Supply Chain and Operations
Management OpenCourseWare
Learnings (Premium Edition)
Compiled & Designed by Raviranjan, Supply Chain Expert | 2025 Edition
Table of Contents
1. Key Formulas
2. Freight Consolidation Curve
3. Hub & Scope Flow Design
4. Carrier Selection Matrix
5. Carbon vs Cost Pareto Frontier
6. KPI & Dashboard Layout
7. AI in Transportation Planning Framework
8. Global Benchmark State Map
9. Strategic Insights & Managerial Takeaways
, Key Formulas
Formula Description
TCO = Cᵦ + Cₒ + Cᵤ + C𝒹 + Cₑ Total Cost = Base + Operating + Utility +
Depreciation + End-of-Life
TC = Cᴰ + Cᴱ(D/Q) + Cᴱ(Q/2 + Kσᴰᴸ + L D̄) Transportation Total Cost Model
SS = Kσᴰᴸ Safety Stock Formula
σᴰᴸ = √(μᴸσᴰ² + (μᴰ)²σᴸ²) Combined Demand–Lead-Time Variability
CV = σ / μ Coefficient of Variation
Iₚ = L × D̄ Pipeline Inventory
μᵦ = 40 Mean Value of Parameter b
ρ=λ/μ Utilization Ratio of Transportation Capacity
TCᵒₚₜ = √(2DS / H) Economic Shipment Size minimizing total
logistics cost
Z = (x̄ - μ) / (σ/√n) Z-score for logistics performance deviation
Management OpenCourseWare
Learnings (Premium Edition)
Compiled & Designed by Raviranjan, Supply Chain Expert | 2025 Edition
Table of Contents
1. Key Formulas
2. Freight Consolidation Curve
3. Hub & Scope Flow Design
4. Carrier Selection Matrix
5. Carbon vs Cost Pareto Frontier
6. KPI & Dashboard Layout
7. AI in Transportation Planning Framework
8. Global Benchmark State Map
9. Strategic Insights & Managerial Takeaways
, Key Formulas
Formula Description
TCO = Cᵦ + Cₒ + Cᵤ + C𝒹 + Cₑ Total Cost = Base + Operating + Utility +
Depreciation + End-of-Life
TC = Cᴰ + Cᴱ(D/Q) + Cᴱ(Q/2 + Kσᴰᴸ + L D̄) Transportation Total Cost Model
SS = Kσᴰᴸ Safety Stock Formula
σᴰᴸ = √(μᴸσᴰ² + (μᴰ)²σᴸ²) Combined Demand–Lead-Time Variability
CV = σ / μ Coefficient of Variation
Iₚ = L × D̄ Pipeline Inventory
μᵦ = 40 Mean Value of Parameter b
ρ=λ/μ Utilization Ratio of Transportation Capacity
TCᵒₚₜ = √(2DS / H) Economic Shipment Size minimizing total
logistics cost
Z = (x̄ - μ) / (σ/√n) Z-score for logistics performance deviation
