Gartner Research

Inventory Quality Ratio: Inventory Performance Metric

Published: 20 February 2015

ID: G00274899

Analyst(s): Marko Pukkila , Paul Lord

Summary

Inventory quality ratio is an inventory performance measure that evaluates current inventory value against future demand in terms of usage value. This research introduces supply chain leaders to this metric, which has been shown to provide valuable visibility to a company's inventory health.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Define Supply Strategy and Inventory Objectives Before Measuring Inventory Performance
  • Understand the IQR Metric Logic, and Consider Its Value in Tracking Overall Progress in the Reduction of Excess Inventory
  • Leverage IQR Methodology to Bring Demand-Driven Relevancy to ABC Inventory Classification
  • Appendix

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