Inventory Performance, Cost and Value Measures

Exercises • Choose an organization in your group. Develop a mission statement for the inventory management activity, an optimization statement for the activity, and seven key performance metrics for inventory management. There should be at least one metric in each of the following categories – finance, productivity, quality, and cycle time. Assign weights to each metric such that the weights add to 100. • What inventory performance measures are currently not being measured that should be? • Develop seven key inventory performance indicators that meet the criteria for effective performance measurement systems established earlier. Present them in dashboard format. • Develop an inventory performance measurement dashboard.