This KPI tells us how often the average inventory over a given period of time (usally a year) is sold in that same period of time.
% of total stock that is not displayed to customers (most applicable in certain retail sectors).
Is a percentage of units sold during a period and it is calculated by dividing the number of units sold by the beginning on-hand inventory (for that same time period).
The absolute variance of actual production to scheduled production.
Inventory on-hand divided by average monthly usage.
Average production costs of items produced within measurement period.
Inventory Days of Supply = Average Inventory / Cost of a Day’s Sales
Example: $20/ $0.5 = 40 days supply
Percentage of orders delivered with damaged products/items
Measured by the number of days (or hours) from the time a shipment leaves your facility to the time it arrives at the customer’s location.
This is the ratio of damaged goods to actual throughput (e.g. per Truck Load).
% of shipments which were delivered ontime upon the total number of goods..shipments.
Scrap value as a percentage of production value.
Accuracy of the book inventory versus the counted inventory.
The (average) age of each product in stock. For example, product received in Jan, but remains until Aug.
Calculated by dividing total freight costs by number of units shipped per period. Useful in businesses where units of measure are standard (e.g., pounds). Can also be calculated by mode (barge, rail,ocean, truckload, less-than-truckload, small package, air freight, intermodal, etc.).