Raw Material Inventory - Blocked measures the amount of blocked RM inventory at a given time at all locations included for reporting. Blocked implies the inventory is recorded as owned, but may is not considered usable or sellable. Examples include: Rejected supplier deliveries, scrap.
Raw Material Inventory - Blocked may be reported by value or volume depending on purpose. Volume-based reports may overstate the importance of inventories of low-value materials. Value-based reports may understate the implications on the need for storage space or production activities needed to deplete the inventory.
For benchmarking purposes Raw Material Inventory - Blocked may be measured as a percentage of total RM Inventory (Unrestricted + Restricted + Blocked).Community Importance Rating: