Metrics that Matter: Inventory Effectiveness
JUNE 25, 2019
The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. 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.