Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Inventory Turnover
A measure of how many times inventory is sold and replaced over a period.
Definition
High inventory turnover indicates efficient sales and inventory management, while low turnover may signal overstocking or slow-moving items.
Overview
Inventory turnover is a key metric for evaluating warehouse efficiency, cash flow, and product demand.
Role
A measure of how many times inventory is sold and replaced over a period.
Focus
Inventory turnover is a key metric for evaluating warehouse efficiency, cash flow, and product demand.
Example
A retailer sells 12,000 units of a product in a year with an average inventory of 3,000 units, resulting in an inventory turnover of 4 times per year.
FAQs
Q: Can you give an example of Inventory Turnover?
A: A retailer sells 12,000 units of a product in a year with an average inventory of 3,000 units, resulting in an inventory turnover of 4 times per year.