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TARGIT - Measuring Supply Chain Performance: Inventory

Key measures of inventory performance,

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Summary

A business intelligence system can present inventory data in a way that supports decision-making, but only the organisation’s employees can use this data to make the difficult trade-offs between inventory costs and the ability to serve customer needs immediately. The relationship between amount of inventory and service level is not linear. Instead, even small increases in an already high service level can necessitate, for example, a doubling of the amount on stock. When assessing performance regarding the inventory service level, it’s not only important to look at whether the target service level was met, but if it was exceeded. 

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