Dwell Time
Dwell time is another metric reflecting overall supply chain performance in managing assets. Inventory dwell is the ratio of the days inventory sits idle in the supply chain to the days it is begin productively used or positioned. While it is sometimes important for inventory to sit idle for reasons of quality control or to buffer uncertainly, extent dwell time reflects the potential magnitude of nonproductive inventory. Dwell time can also be computed for other assets, especially transportation equipment. For example, rail car utilization can be measured by computing the number of day a rail car sits idle and empty versus the number off it is loaded with freight. Reducing asset dwell time is a key objective for many logistics executives. Assets that sit idle are not contributing to productivity in the supply chain