Inventory Performance, Cost and Value Measures

RightChain™ Inventory Scoreboard

FINANCIALS I

FINANCIALS II

EFFICIENCY

SERVICE & QUALITY

PRODUCTIVITY & CYCLES

INVENTORY INVESTMENT • Average (AIV) • Snapshot (OHIV) • Cube on Hand (COH)

INVENTORY CARRYING RATE Warehousing, Storage, …

INVENTORY TURN RATE Turns at Retail, Turns at Cost, Unit Turns

FILL RATE Unit Fill Rate, Line Fill Rate Order Fill Rate

PLANNER PRODUCTIVITY SKUs per FTE $s per FTE Sources per FTE POs per FTE

INVENTORY CARRYING COST ICC = AIV x ICR

. GROSS MARGIN (GM) Revenue (REV) less Cost of Goods Sold (COGS)

FORECAST BIAS & ACCURACY

ON HAND INVENTORY Days, Leadtimes Cube

CYCLE TIMES Planning Cycle Time PO Cycle Time

INVENTORY VALUE ADDED IVA = GM less ICC

INVENTORY ACCURACIES Fiscal Accuracy, Physical Accuracy

GROSS MARGIN PERCENT GM/Revenue

DC OCCUPANCY Locations Cube

LOST SALES COST LSC = (1 – Fill Rate) x GM

INVENTORY QUALITY RATIO

GROSS MARGIN RETURN ON INVENTORY (GMROI) GM/AIV

ACTIVE SKU RATIO

INVENTORY POLICY COST IPC = ICC + LSC

GROSS MARGIN RETURN ON CUBE

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