Wednesday, January 7, 2009

Key Performance Indicator (KPI) in Inventory Management

A Key Performance Indicator (KPI) in inventory management may be defined as information associated with a target (objective) in order to provide an assessment of the performance in relation to the target, the target being defined within the scope of an overall strategy. Such assessment should be associated with (modulated by) the resource variables (human and technical)

Some examples of performance indicator associated to inventory management are as follows:




Performance Indicator


Details/Comments


Value of stock



Value of stock at the end of the month. May be detailed in stock per Division or per class of equipment.


Value of surplus stock


Value of surplus stock at the end of the month.



Number of surplus items


Number of surplus items at the end of the month.


Value of obsolete stock


Value of obsolete stock at the end of the month.


Number of obsolete items


Number of obsolete items at the end of the month.


Number of stock items

Number of stock items at the end of the month.


Number of created stock items


Number of stock items created during the month.


Number of reviewed/analysed items



Number of reviewed/analysed items (generating possible changes to management parameters) during the month.


Number of removed stock items



Number of stock items removed during the month.


Stock at third parties (Number of items and value)



Stock at third parties (Number of items and value) at the end of the month.


Reception in stock (Number of movements and items, and value)


Reception in stock (Number of movements and items, and value) during the month.


Exits from stock (Number of movements and items, and value)


Exits from stock (Number of movements and items, and value) during the month.


Return to stock (Number of movements and items, and value)

Returns to stock (Number of movements and items, and value) during the month.


Number of inventoried items


Number of inventoried items during the month.


Inventory boni and mali (Number of

items and value)


Inventory boni and mali (Number of items and value) during the month.


Consumption value


Consumption value during the month.


Rotation of stock


Rotation of stock (in consumption months). May be detailed per Division or per class of equipment.


Number of stock shortages (Number

of items)


Number of stock shortages (Number of items) during the month.


Number and value of sold items


Number and value (in stock) of items sold during the month.


Returns from stock item sales



Monthly returns from stock item sales.






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