Supply chain and operations analytics is the discipline of applying quantitative methods, KPIs, and data-driven models to plan, monitor, and optimize the flow of goods, information, and money across the entire value chain β from raw-material procurement through last-mile delivery. It sits at the intersection of operations research, business intelligence, and data science, and it underpins decisions in inventory, logistics, supplier management, and integrated planning. A practitioner's key insight is that every metric in this domain interacts with the service-cost-cash triangle: improving one dimension almost always creates trade-offs in the other two, so analytics must quantify those trade-offs rather than optimize a single KPI in isolation.
What This Cheat Sheet Covers
This topic spans 15 focused tables and 114 indexed concepts. Below is a complete table-by-table outline of this topic, spanning foundational concepts through advanced details.
Table 1: Inventory Efficiency Metrics
The most fundamental inventory KPIs tell you how fast stock moves, how long it sits, and how efficiently capital is deployed β they form the baseline for every inventory optimization effort.
| Metric | Example | Description |
|---|---|---|
\text{Turnover} = \frac{\text{COGS}}{\text{Avg Inventory}}e.g., \frac{2{,}000{,}000}{400{,}000} = 5 turns/yr | β’ Measures how many times stock is sold and replaced per period β’ higher turns = faster-moving inventory but risks stockouts if pushed too high | |
\text{DOH} = \frac{\text{Avg Inventory}}{\text{COGS}/365}e.g., \frac{400{,}000}{5{,}479} \approx 73 days | β’ Also called Days Sales of Inventory (DSI) β’ measures how many days inventory lasts before sell-through β’ target 30β60 days in most ecommerce contexts | |
\text{WOH} = \frac{\text{Avg Inventory}}{\text{COGS}/52} | β’ Same concept as DOH expressed in weeks β’ high WOH signals slow movement, low WOH signals lean stock | |
\text{S:S} = \frac{\\text{Inventory Value}}{$\text{Sales Value}}$ | β’ Broad indicator of stocking efficiency β’ used to adjust purchasing to maintain target margins. | |
\text{STR} = \frac{\text{Units Sold}}{\text{Units Received}} \times 100e.g., \frac{800}{1{,}000} = 80\% | β’ Compares units sold to units received β’ low rates indicate slow-moving SKUs needing markdown or rebalancing |