Inventory Value Not Moved for more than 60 days
Inventory Value Not Moved for more than 60 days refers to the monetary worth of inventory items that have remained stagnant and inactive within the supply chain network for a duration exceeding 60 days without undergoing any significant movement, including sales, transfers, or consumption.
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The amount of inventory value not moved for more than 60 days

KPI Definition

Inventory Value Not Moved for more than 60 days, within the realm of supply chain Key Performance Indicators (KPIs), refers to the monetary worth of inventory items that have remained stagnant and inactive within the supply chain network for a duration exceeding 60 days without undergoing any significant movement, including sales, transfers, or consumption. This metric encompasses the cumulative value of goods or materials that have experienced prolonged dormancy within storage facilities, distribution centers, or warehouses, thereby indicating potential inefficiencies, overstocking, or inadequate inventory management practices. Inventory value not moved for more than 60 days serves as a critical indicator of inventory obsolescence, excess inventory levels, or deficiencies in demand forecasting accuracy, which can lead to increased carrying costs, reduced liquidity, and diminished profitability.

Business Value

This metric helps businesses analyse the inventory that has been ordered

Movement Direction

Sample Formula

SUM (CSS_DN_Value * On_Hand_Good)

Should Aim For
1
This metric should move down ie., decrease with time
2
3
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