Stock Adjustment Value refers to the monetary value of the inventory adjustments made by a company during a specific period. It represents the difference between the actual inventory levels and the expected inventory levels based on demand forecasts, sales trends, and other factors.
The Stock Adjustment Value can be calculated by multiplying the number of items adjusted by the unit cost of each item. This metric is used to measure the financial impact of the inventory adjustments made by a company. A high Stock Adjustment Value indicates that a company is making significant changes to its inventory levels, which can affect its cash flow, profitability, and overall financial performance.
Therefore, it is important for companies to monitor their Stock Adjustment Value and ensure that it is kept to a minimum by optimizing their inventory management processes and implementing effective demand forecasting and inventory replenishment strategies.
The reference value of this KPY is less than 4% of the inventory du stock, obviously calculated in an absolute way, two inventory adjustments, -€100 and +€200 generate an adjustment value of €300
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