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Consumption gap analysis involves identifying and understanding the difference between actual and desired levels of consumption.
Identify the desired level of consumption
Determine the actual level of consumption
Calculate the gap by subtracting the actual level from the desired level
Analyze the reasons for the consumption gap
Identify potential solutions to bridge the gap
Inventory gaps in a system refer to discrepancies or shortages in the quantity or availability of items.
Stockouts: When an item is out of stock and unavailable for purchase or use.
Overstocking: When there is an excess of inventory beyond what is needed or can be sold.
Obsolete inventory: Items that are no longer in demand or have become outdated.
Shrinkage: Loss of inventory due to theft, damage, or other reasons.
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