The float is roughly the pallets used per day times the days a pallet takes to go round the loop, plus a buffer. Longer dwell anywhere in the loop means a bigger float and more capital tied up.
For owned loops, the float is the capital outlay at the start of the program. The Program Builder adds it at year zero when it calculates net present cost.
See also
- Closed loop
- A pallet program in which the same pallets circulate between known locations and come back to the owner.
- Dwell time
- The number of days a pallet stays on one party's account or premises before moving on.
- Loss rate
- The share of pallets lost, stolen or scrapped on each trip in a loop.