For inventory management departments it is important to monitor the performance on a yearly, monthly and even daily basis. Six different Key Performance Indicators (KPIs) have been defined to monitor the performance of inventory management. The first four KPIs are to be used on a day to day basis. The latter two are important to be able to correctly interpret the first four.
• Service level
• Days inventory on hand
• Excess stock percentage
• Breaking bulk factor
• Long-tail index
• Percentage from stock