Max Inventory Quantity
Max Inventory Quantity, represents the upper limit or maximum threshold of inventory levels that an organization aims to maintain within its supply chain network at any given time.
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The maximum inventory quantity

KPI Definition

Max Inventory Quantity, within the scope of supply chain Key Performance Indicators (KPIs), represents the upper limit or maximum threshold of inventory levels that an organization aims to maintain within its supply chain network at any given time. This metric quantifies the highest acceptable quantity of inventory, encompassing raw materials, work-in-progress, and finished goods, based on factors such as demand variability, production capacity, lead times, and service level agreements. Max Inventory Quantity serves as a critical benchmark for inventory management, guiding procurement decisions, production scheduling, and inventory replenishment activities to ensure adequate stock availability while minimizing excess inventory holding costs and the risk of stockouts.

Business Value

This metric helps businesses analyses the maximum inventory that was wrongly procured

Movement Direction

Sample Formula

SUM (Max_Level)

Should Aim For
1
This metric should move up ie., increase with time
2
3
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