Various Supply Chain Metrics:
Inventory Months of Supply:
Inventory On Hand / Avg Monthly Usage
(the Avg Monthly 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.
