What are we measuring: Items in your inventory with a negative quantity
Why are we measuring this: While the ability to go into the negative is a handy tool in the short term, we should not be ending months with negative inventory. These skew inventory value.
Scoring: 0-24, 35-49, 50+
Recreate Metric: Purchasing Module – Inventory Tab – Choose inventory location – Select Allocation from sub header – Filter: Quantity Less than 0.
Common Issues:
Not doing quantity on hand adjustments on a regular basis to keep inventory clean
Practical:
Make sure you are doing hard counts for your inventory at least once a quarter and making quantity on hand adjustments
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