Inventory Metrics & Glossary

Qty Consumed (Qty Con)

Measures the Sales or Production Order quantity over the Scenario period.

IC Qty Consumed (IC Qty Con)

Measures the Sales Order quantity over the Scenario period to intercompany customers.

Months With Consumption

Number of months where demand occurred within the selected Scenario.

Avg Consumption Lead Time (Avg Con LT)

Average demand over your lead-time window. Primary input for reorder point and safety stock calculation.

Min / Max Con LT

Minimum and maximum demand observed over the part lead-time window.

On Hand

Current available inventory quantity.

On Hand Value (On Hand$)

Value of current inventory (standard cost).

Days on Hand (DOH)

Days current inventory will last at recent consumption rates.

Inventory Turns (Turns$)

Consumption (Production and Sales) divided by average inventory value (First Day + Last Day, divided by 2).

Days Aging

Weighted average age of current stock.

ERP Safety Stock (ERP SS)

Safety stock quantity stored in ERP.

Minimum Order Quantity (MOQ)

Minimum vendor or production order size.

Service Level

Expected Service Level based on Tier, set within the dashboard configuration screen.

Supplier Rel.

Recommended safety stock input to cover poor suppliers. Set within the dashboard configuration screen.

Make Buy (M/B)

Designation of whether the ERP system has this part set up to Make internally or Buy from a supplier by default.

Coefficient Of Variation (CoV)

Standard deviation divided by mean demand — a measure of relative volatility.

• > 1.0 — Highly variable; use conservative safety stock
• < 0.5 — Stable; lower safety stock may be appropriate

Intermittency Score

Percent of working days with non-zero demand.

• < 20% — Demand is sporadic; use Min/Max or Poisson logic
• > 80% — Demand is consistent; EOQ or (s, Q) logic works best

Skewness (Within Lead Time)

Measures the asymmetry of demand over the lead time.

• > +1 — Right-skewed (demand spikes happen; plan for surges)
• < -1 — Left-skewed (high early demand, then drops)
• ≈ 0 — Symmetric; Normal distribution is appropriate

On-Time Ship

% of orders shipped by the promised date. Sales order measurement only.

Stock-Out Days

Number of days with no available inventory.

Firm Dmd (MRP)

Committed demand (sales orders, work orders, allocations).

Fcst Dmd (MRP)

System-generated demand forecast.

Firm Repl (MRP)

Released POs and work orders.

Plan Repl (MRP)

Suggested POs or work orders from MRP that are not yet firmed.

ABC / XYZ Classification

Two-dimensional segmentation: ABC ranks items by cumulative value; XYZ ranks by demand predictability (CoV).

• ABC by cumulative value (Pareto):
  • A: Top 80% of cumulative value
  • B: Up to 95% cumulative value (next 15%)
  • C: Final 5% of cumulative value
• XYZ by CoV:
  • X: CoV ≤ 0.50 (highly predictable)
  • Y: 0.50 < CoV ≤ 1.00 (moderate variability)
  • Z: CoV > 1.00 (highly variable or intermittent)

How to use: Combine ABC and XYZ to set stocking policy. Example: AX = high value + stable → tight min/max. CZ = low value + erratic → consider min/max or de-stock.

Inv. Plan?

Indicates which Inventory Plan the part is aligned to. RR = Regular Review. GW = Get Well.

This setting is controlled with the clipboard icon within the dashboard.

Part Cnt

Number of items represented in the view.

Inventory Exceptions

Evaluates each part against policy rules to flag service risk, overstock, and planning gaps. Uses on-hand value, safety stock settings, lead time coverage, demand activity, and aging.

• ✅ OK – Low-Cost, Low-Value Item — Unit cost < $1 and total inventory value < $1,000
• 🔴 Overstock – Non-Stock Part — On-hand > 0, ERP SS = 0, aging > 90 days
• 🔴 Overstock – More Than 2× Lead-Time Supply — DOH > 2 × Lead Time
• 🟠 Low Supply – Replenishment Risk — Days of Supply < Lead Time and part is Moderately or Highly Active
• 🟠 Intermittent Part – Possible Overstock — Intermittency < 10%, On-hand > Recommended Max, On Hand$ ≥ $1,000
• 🟠 Slow Moving – High-Value Part — Unit cost > $1,000, Turns ≤ 2, On-hand > 0
• 🔵 Tier 1–2 – Recurring Stock Outs — Tier is 1 or 2 and Stock-out days > 5
• ✅ OK – No Exception — Default when no exception rules are met

See the full Exception Rules page for detailed logic and configuration options.