Category: Inventory Management

Inventory Turnover Ratio Formula

Inventory Turnover Ratio Formula   How to calculate inventory turnover ratio for your business: Inventory Turnover Ratio Definition and Why it is important? Inventory turnover ratio can be a powerful performance ratio which displays exactly how efficiently inventory is actually managed simply by comparing COGS along with average inventory during any period of time. It […]

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ABC Inventory Analysis

ABC inventory analysis is a simple approach to creating categories for your inventory. For example, category A items will be the inventory which requires very strict control and management with accurate tracking and reporting. The category B items in your inventory will be items which do not require very strict control and reporting. The C […]

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Inventory Metrics Examples

The objective of any inventory management program or inventory system should be to minimize cost, maximize profit while being able to meet customer expectations (orders). Just like in any business discipline tracking, monitoring and measuring metrics is crucial for effective management. However the metrics you use will drive the performance because you’ll be focusing on […]

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