ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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mathematical calculation of the number of times the average inventory is replaced over a period of time (usually annually
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want book
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point-of-sale (POS) master
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perpetual inventory system
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inventory control
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inventory turnover rate
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Explanation:
Detailed explanation-1: -You can calculate the inventory turnover ratio by dividing the inventory days ratio by 365 and flipping the ratio. In this example, inventory turnover ratio = 1 / (73/365) = 5. This means the company can sell and replace its stock of goods five times a year.
Detailed explanation-2: -Inventory turnover ratio = Cost of goods sold / average inventory. DSI = average inventory / COGS X 365. Average Inventory = (current inventory + previous inventory) / number of periods. 12-Jan-2021
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