Inventory Valuation
In this workflow, inventory valuation at end of each month can be visualize in KNIME, and shared with business users.
This workflow reads data from a fictional company named Abc Inc., which measures its inventory at the end of each month. The head of the supply chain department requested a KNIME workflow to monitor overall inventory valuation in accordance with the Key Performance Indicator (KPI) which is the deviation from the inventory valuation calculated as follows:
Deviation from Inventory Valuation (D) = (Value at End of each Month (V) - Valuation Threshold)
The deviations from KPI threshold recorded for selected towns are visualized along with month-end trend for 2020 and 2021.
As long as the measured value is less than the threshold, the business is performing well. In a perfect world, inventory value should be zero towards the end of the month but that is not always the case. Therefore a bearable threshold value is set by the executives.