Other Metrics - Supply Chain Metric

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Various Supply Chain Metrics:
Inventory Months of Supply:
 Inventory On Hand / Avg Monthly Usage
(the Avg M
onthly Usage is typically the yearly forecast divided by12)
Inventory Rationalization:
An analysis that categorizes your inventory by various categories. Examples-
- Current Inventory levels of A,B,C products
- Inventory turns of A,B,C
- Value of Slow Moving product (those products you may have more than "x" number of weeks worth)
Material Value Add.
- Sell price minus material cost divided by material cost.
Upside Flexibility:
 The ability of a manufacturer to meet additional demand requirements. This is usually compared as a percentage over the original order. This is protection for the buyer. It allows for the actual demand to be higher than the forecasted quantity.
 
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