« Back to Glossary Index

Run rate is a performance metric that estimates future inventory or production volume based on current output over a specified period. It helps supply chain managers project how much inventory will be consumed or produced if current conditions persist. Understanding run rate assists in aligning procurement and production schedules with demand, preventing overstocking or stockouts. However, run rate should be used cautiously as it assumes consistent demand and operational conditions, which may vary due to seasonality or market changes. 

 

 

 

Download your White Paper

Run Rate