Outliers: When Averages Lie
Alan quoted a stock turn of 8, citing AC Nielsen. A useful yardstick — until you inspect the distribution. Outliers (ultra-fast or ultra-slow movers) distort averages and hide the real picture. Medians, trimmed means, and interquartile ranges are more faithful for replenishment rules. If a KPI can be gamed by a handful of SKUs, it isn’t a KPI — it’s a comfort blanket.