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Inventory Optimization

Purpose -

Tracks the effectiveness of inventory management to avoid overstocking or stockouts.

Operational Definition -

(Optimal Inventory Level / Actual Inventory Level) * 100

Type of Metrics -

Business Outcome

Function -

Planning - Material

Associate Function -

Planning - Material

Desired Trend -

Higher the better

Recommended Frequency - 

Monthly

External References -

https://opsdog.com/categories/kpis-and-metrics/materials-management

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