Definition: Cost to Serve (C2S) is a metric used in Logility Network Optimizationr to describe the total cost it takes to get one unit from the original supply source to the customer. It is measured in cost per unit.
Description: as a your product makes it way thought a path to from source node to customer node, it incurs costs.
Example: Your customer is serviced in this manner:
Plant1 -- FTL lane 2 -- Warehouse 3 -- LTL Lane 4 -- Customer 5
The activities on each object are:
Plant 1--manufacturing = $2 / lb
FTL Lane 2 -- Freight cost = $1 / lb
Warehouse 3 -- Lease cost = $100,000
LTL Lane 4 -- Freight cost = $3 /lb
Cost to serve for "Customer 5" is: 2$ + 1$ + $100,000/(total flow through warehouse 3) + $3
If there is 100,000 lbs flowing through Warehouse 3, then the C2S = $7/lb