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How improve the quality of this measure?

A corrector allows you to modify your initial value of inventory by removing a quantity that you do not want to include into the efficiency calculation. For example:

  • obsolete inventory with no demand;
  • inventory bank to move an equipment;
  • process inventory: minimum inventory that you need to have for the process to run (continuous process);
  • backflushing correction: the backflush does not happen after the physical consumption but later on;
  • subassembly correction: your subassembly inventories (managed by Kanban for example) are not known by your system (no booking), so the backflush does not happen when the material is actually consummed but when an upper lever of the BOM is produced.

This parameter can be defined with different units: quantity, value or days to facilitate its update.

Inventory Efficiency Tool Excel spreadsheet to calculate Inventory Efficiency.

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