1. Inventory Management
  2. Supplier Performance

Supplier Defect Rate


Represents the percentage of received goods from a supplier that are defective. A low defect rate is crucial for maintaining quality standards and reducing return and rework costs.


(Number of Defective Items Received / Total Number of Items Received) x 100


If 5 out of 1,000 items received from a supplier are defective, the defect rate is 0.5%.