Understanding Inventory Turnover Rate Inventory turnover measures how many times a business’s inventory is sold and replaced over a specific period. The formula to calculate this metric is: Inventory Turnover Rate = Cost of Goods Sold (COGS) / Average Inventory A higher inventory turnover rate indicates effective inventory management and sales performance, allowing businesses to … Read more
Understanding Inventory Management for Small Businesses As a small business owner, effective inventory management is crucial for your success. This involves not only tracking your stock levels but also managing orders, sales, and suppliers. If you haven’t yet developed a systematic approach to inventory, it is essential to start now. Why is Inventory Management Important? … Read more
Understanding Lean Manufacturing Lean Manufacturing is a systematic approach designed to improve production efficiency and reduce waste. This approach not only makes processes more cost-effective but also enhances customer satisfaction through expedited service and quality delivery. A Brief History The concept of Lean Manufacturing traces back to the 19th century and has evolved significantly over … Read more