Editing Logistics engineering (section)

===Performance metrics===
{{main|Performance metric}}

Different [[performance metric]]s (measures of performance) are used to examine the efficiency of an organization's logistics. The most popular and widely used performance metric is the landed cost. The landed cost is the total cost of purchasing, transporting, warehousing and distributing raw materials, semi-finished and finished goods.

Another performance metric equally important is the end customer [[Service level#.CE.B2 service level .28type 2.2C also known as .22fill rate.22.29|fill rate]]. It is the percentage of customer demand which is satisfied immediately off-the-shelf (from on-site inventory).  An alternative to fill rate, is system [[availability]].

In recent years, the [[United States Department of Defense]] (DoD) has advocated the use of [[performance-based logistics]] (PBL) contracts to manage costs for support of [[weapon system]]s.