INVENTORY TURNS

[LOKI1]

What would the formula be for determining the ideal inventory total for your average monthly sales?

[Mike Nicholes]

Annualized cost of sales/ (divided by) the G/L Inventory = Gross turn ratio

Gross turn ratio X (times) the percentage of total annual cost of sales bought on stock order (a percentage) = True Turn.

desired figures are based on daily, ASR or weekly stock orders. go to www.partsconsulting.com and download the checklist and the key to the checklist for more data

Mike Nicholes

[LOKI1]

Thank you