Inventory turnover

Supply chain flashcard on inventory turnover. Inventory turnover is the number of times the inventory is sold or consumed during a given time period, typically a year. Thanks to local suppliers, our inventory turns with the speed of a figure skater! Synonyms: inventory turns, stock turnover. Inventory turnover is typically measured either at the SKU level or averaged out at a more aggregate level. Does dead stock result in a zero inventory turnover ratio? The image part of the flashcard features an auctioneer holding a hammer and saying, It was sold last time in 1986. Behind him is the famous painting, Meules by Claude Monet. The bottom line says, Considering inventory turnover in isolation is a meaningless practice.

Artist: Marina Besfamilnaya

Learn more in the entry Inventory turnover of the Lokad knowledgebase.