TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
Quantitative Measures in warehouse management refers to the measures used to evaluate the output of a given input in a given process. For instance, quality and customer satisfaction. Quantitative measures also known as Quantity Based Quality Control (QCD) is the measurements used to evaluate the operation, as well as compare or measure the output or performance of goods. In addition, quality assurance methods may include testing or sampling of a product before it is released for sale.
In order to understand how to use quantitative measures in order to improve your warehouse operations, it helps to understand how they work. Quantitative measure, as its name suggests, is an activity or process that attempts to establish an objective measurement of some quantity or value and then to compare that objective with the measured data to get an idea of an effect (or benefit) in terms of another quantity or value. Quantitative measures can further divided the quantitative measures of supply chain functionality into two categories.
The first category, established supply chain network, simply refers to the physical characteristics of the goods or services as they exist in the real world. These qualities can be expressed as raw material inventories, over-stock inventories, or the actual current condition of inventory, including a comparison to the current or historical average. The second type, called service level, is a more complex and difficult to define concept because it involves comparing a company's promise to deliver goods to their ability to actually do so.
