The minimum inventoy value or amount

KPI Definition

Min Inventory Value, as a critical metric in supply chain Key Performance Indicators (KPIs), represents the lowest monetary worth of inventory assets that an organization aims to maintain within its supply chain network at any given time. This metric serves as a fundamental benchmark for inventory management, guiding procurement decisions, production scheduling, and inventory replenishment activities to ensure operational continuity and meet customer demand efficiently. Min Inventory Value encompasses the monetary value of inventory assets across various categories, including raw materials, work-in-progress, and finished goods, based on factors such as demand variability, lead times, and service level agreements.

Business Value

This metric helps businesses analyses the minimum inventory and amount associated with it