Common use of Minrate Clause in Contracts

Minrate. In Figure 7.6a, the minrate and the percentage of parts which are repaired within the lead- time is displayed. The minrate and the percentage of parts which are repaired within the lead-time, both measures the ability of the repair shop, to adhere to the interface agreements made. In the Lead-time To-Be situation, the repair shop is best able to adhere to the agreement to repair parts within the lead-time, hereafter the Min-max To-Be situation and last the Min-max As-Is situation; respectively 92%, 90% and 82%. This performance can be explained by the fact that in the Lead-time model a relatively long lead-time is taken. In the Min-max To-Be situation the turn-around stock and minimum levels are optimized. In this case the minimum levels are well-chosen and therefore it is easier to maintain the inventory level above or equal to the minimum levels. Minrate/ Within due-date 0,100 0,050 Min−Max To−Be Lead−Time To−Be 0,000 0,250 0,200 0,150 Min−Max As−Is Ratio Ratio