Metrics that Matter: Inventory Effectiveness
JUNE 25, 2019
It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Many organizations publish turns data by industry or SIC code to help gauge where you stand against others in your industry. Using Metrics to Measure the Health of the Business. Companies use these metrics to minimize their investment in inventory without adversely affecting customer service levels.