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Inventory Valuation

Inventory valuation is the process of determining the monetary value of goods held in stock at specific points in time. It's a key activity for supply chain and finance teams to monitor asset levels, manage costs, and ensure alignment with business targets.

Supply ChainDataviz & Data AppsManufacturing
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Workflow
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Inventory Valuation

How This Workflow Works

This workflow calculates and tracks monthly inventory values for a company, comparing them to a set threshold to monitor deviations from a key performance indicator. It visualizes these deviations and trends for selected locations, helping business users assess inventory performance over time.

Key Features:

  • Calculate monthly inventory values and key supply chain metrics
  • Identify deviations from target inventory thresholds
  • Categorize inventory items based on their contribution to total value
  • Visualize trends and deviations for informed decision-making

Step-by-step:

1. Calculate Inventory Metrics:

The workflow computes essential metrics such as total order value, average daily demand, and lead time for each inventory item. These calculations form the basis for understanding how inventory is moving and accumulating over time.

2. Aggregate and Analyze Item Performance:

It aggregates data by item, summarizing values like total consumption, variability, and order timing. The workflow then sorts and categorizes items based on their contribution to overall inventory value, using established inventory management techniques.

3. Determine Stock Levels and Replenishment Points:

Using the aggregated data, the workflow calculates safety stock, reorder points, and optimal order quantities. These calculations help ensure that inventory levels remain within acceptable thresholds and support efficient supply chain operations.

4. Visualize and Share Insights:

The workflow presents deviations from the inventory valuation threshold and monthly trends through interactive tables and reports. These visualizations make it easier for business users to monitor performance and share findings with stakeholders.

How to Get Started