Capability Sixpack: Normal for Improve Stock Rotation

Use Capability Sixpack: Normal to demonstrate that a process is capable of meeting expectations for stock rotation time.

This example applies to the Supply Chain Module. For more information, go to www.minitab.com/supply-chain-module.

Example

Stock rotation is the number of days until the inventory stock is depleted. To calculate stock rotation, first divide the average inventory value by the total sales for the same time period. Then multiply this ratio by the number of days in the time period.

In this worksheet, Turnover Days is the data column.

C1
`Turnover Days`
43.8
41.5
63.1
29.9

How-to

Choose Solutions Modules > Functions > Supply Chain KPIs, then select Launch.
Under Inventory, select Stock rotation.
Select Improve stock rotation, then click OK.
Select Capability Sixpack: Normal, then click OK.
Under Data are arranged as, select Single column.
In Single column, enter the column that contains the stock rotation data.
In Subgroup size, enter 1.
In Upper spec, enter the upper specification limit for stock rotation time. This is the highest stock rotation that is acceptable to your organization. You can also enter a lower specification limit to specify the lowest acceptable stock rotation.
Click Transform, select Box-Cox power transformation (W = Y^λ). (This step is not necessary if your stock rotation data follow a bell-shaped pattern in the histogram.)
Click OK.

Tip

For more information about this analysis, click Help in the main dialog box.