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- Key Performance Indicators (KPIs) for manufacturing inventory management include12:
- Average inventory level: The estimated average amount of inventory on hand at a given time.
- Order lead time and order cycle time: Measures related to the time it takes to process orders.
- Inventory turnover rate: How quickly inventory is sold and replaced.
- Stock-to-sales ratio and inventory-to-sales ratio: Ratios comparing inventory levels to sales.
- Days sales of inventory (inventory days on hand): How many days of sales your inventory represents.
- Carrying cost of inventory: The cost of holding inventory.
- Backorder rate: The percentage of orders that cannot be fulfilled immediately.
- Sell-through rate: The rate at which inventory is sold.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Top 11 inventory management KPIs
- Average inventory level Starting the list off at the absolute foundation, the average inventory KPI returns the estimated average amount of inventory you have on hand at a given time.
- Order lead time, order cycle time
www.mrpeasy.com/blog/inventory-management-kpis/Top KPIs & Metrics
- 1. Demand Forecast Accuracy
- 2. Customer Satisfaction Levels
- 3. Perfect Order Performance
- 4. Fill Rate Effectiveness as a Percentage of All Orders
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