Would you rather cost optimize or time optimize?

Jerry Martin

New member
Optimization is sometimes doing both: you optimize all the factors at the same time because they are linked. But optimization sometimes can only be answered with trade-offs: you can only favor one of the other, and you can only focus your optimization there. It depends of the task and of the skills of the people trying to optimize your network.
This time, I will focus more on trade-off, because there is probably no reason to reject any win-win optimization where you win both time and cost. But when it comes to decisions, it is suddenly harder to do.
Basically, I want to talk about one of the most common trade-offs we can meet in supply chains, I guess: time versus costs. Time often means that you do things the speedy way, while costs rather means you try to go for the cheaper, even if it means you'll use USPS instead of being fast and use other company's delivery.
There's also another one, the quality and you can talk about it as well. So, what would be your choice, why, and how to make these trade-offs correctly?
 

Norm

New member
Re: Would you rather cost optimize or time optimize?

I'd rather save on time, more often than not, because it's much more of a rare resource than finance. I know I can acquire the cost again but what time that has been lost will be gone forever. Usually, I'd opt to just pay more to get something done faster, but only if it's necessary. If I feel as though the time can be spared, I wouldn't just automatically decide to still spend to rush things either. I just feel as though time should be given more importance in most cases.
 

Corzhens

Member
Re: Would you rather cost optimize or time optimize?

A clear example for me about that cost versus time model is the delivery of our supply to the provinces. There was a time when the head of the branch in the province had requested a new laptop. The usual delivery system is by personal courier who would take the bus. The land travel is more than 10 hours compared to plane for just a little over 1 hour. Obviously, land travel is much cheaper than air so our HR would always insist on land travel. But the branch officer was insistent that the laptop be delivered on the next day. Well?
 

Jerry Martin

New member
Re: Would you rather cost optimize or time optimize?

I'd rather save on time, more often than not, because it's much more of a rare resource than finance. I know I can acquire the cost again but what time that has been lost will be gone forever. Usually, I'd opt to just pay more to get something done faster, but only if it's necessary. If I feel as though the time can be spared, I wouldn't just automatically decide to still spend to rush things either. I just feel as though time should be given more importance in most cases.
That depends if the time is time, or throughput. Honestly, I forgot it on that thread and that feels bad. But then: is the time it takes limit your throughput in the middle term? If yes, time does matter, if not it does not matter much.
But, however, human time always matter. That's not the same thing as delay time, where things get delayed because of a slower transportation, or because of the labor involved.

A clear example for me about that cost versus time model is the delivery of our supply to the provinces. There was a time when the head of the branch in the province had requested a new laptop. The usual delivery system is by personal courier who would take the bus. The land travel is more than 10 hours compared to plane for just a little over 1 hour. Obviously, land travel is much cheaper than air so our HR would always insist on land travel. But the branch officer was insistent that the laptop be delivered on the next day. Well?
You got to a confusing case, but if you read it carefully, you might think they just want land delivery both, don't you think? After, the air delivery feels a bit overweighted for a laptop given its cost, but you can bring up pressure to find a laptop available nearby instead of one that would need long delivery.
 

Norm

New member
Re: Would you rather cost optimize or time optimize?

That depends if the time is time, or throughput. Honestly, I forgot it on that thread and that feels bad. But then: is the time it takes limit your throughput in the middle term? If yes, time does matter, if not it does not matter much.
But, however, human time always matter. That's not the same thing as delay time, where things get delayed because of a slower transportation, or because of the labor involved.


You got to a confusing case, but if you read it carefully, you might think they just want land delivery both, don't you think? After, the air delivery feels a bit overweighted for a laptop given its cost, but you can bring up pressure to find a laptop available nearby instead of one that would need long delivery.
There are definitely some things you can't rush no matter how much money you can throw at it. Generally, though, I think valuing time over finance is the right way to go because as I've mentioned monetary resources are easier replaced, albeit still not being that easy. If I can find another way to save myself some time even if I have to pay for it, as long as the cost is around what I would value my time that I would have spent, then I'd most likely just go for that option.
 

KloeRinz

New member
Re: Would you rather cost optimize or time optimize?

Time optimize for me. There are things that saving time can give you. Meanwhile, money is just limited to finance. Time is a universal resource and thus it is quite important. People tend to undervalue time and take it for granted, in my opinion.
 
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