Inventory KPIs
Average Inventory
Amount of inventory a company has on-hand during a period
(Beginning inventory + Ending inventory) /2
Days on Hand
Days on hand (DOH) is the average days before inventory is sold
Average inventory for period/ cost of sales for period) × 309.
Stock to Sales Ratio
Is the measure of the inventory amount in storage versus the number of sales
Inventory value / Sales Value
Cost of Carry
Percentage of total inventory value a company pays to maintain inventory in storage
(Inventory Service Costs • Inventory Risk cost + capital + storage cost) / Fotal inventory value
Backorder Rate
Tracks the number of delayed orders due to stockouts
Number of Undeliverable Orders / Total Number of Orders)
Sell-through Rate
Comparson of the inventory amount sold and the amount of inventory received from a manufacturer
Number of units sold / Number of units received
Scrap rate
Measures the quality of the inventory and is used decrease the non quality cost
Scrap expenses over the period / Average inventory over the period
Time to receive
Measures the efficiency of stock receiving process
time for stock validation + time to ada stock to records * time to prep stock tor storage
Inventory shrinkage
Measures the shrinkage due to damage, miscounts and fraud
Ending inventory value - Physically count inventory value
Dead stock
Dead stock is inventory no one efficiency of supply chain
Amount of unsellable stock in period / Amount of available stock in period