Recession and Natural Disasters Explain Flat Inventory Levels
Forecast Errors newsletter reported that Dan Gilmore, Editor-in-Chief of Supply Chain Digest, discussed the inventory-to-sales ratio, as tracked by the US government. It measures on-hand inventory levels against one month's worth of sales. Other than the wild gyration in 2008-09 associated with the great recession, inventory levels have been flat for a decade, even gently rising in the past few years. There is a general bias in the last few years towards top line revenue growth, relatedly SKU proliferation and...
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