Inventory Turnover Rate per Period
Explanation
This activity is used to view turnover rates of inventory parts for a
required period. The turnover rate is calculated by dividing the cost of goods
sold (Issued Value) by the average inventory balance (Average Inventory Value).
This ratio allows the planner or controller to see how frequently the company
needs to replenish its existing inventory, based on part movements.
Prerequisites
- The inventory transactions must have been
aggregated before carrying out this activity.
System Effects
-
The turnover rates per part can be
viewed using the
Inventory Turnover Rate per Period
window.
Window
Inventory Turnover Rate per Period
Related Window Descriptions
Inventory Turnover Rate per Period
Procedure
- Open the Inventory Turnover Rate per Period window.
- Select query option and the
Select Statistics Periods
dialog box will open.
- Enter the required Year and Period for
from-period.
- The to-period will have the current year and the period as default
values, which can be replaced.
- Click OK and continue the query.
Note: The above procedure is valid for the populate
option as well, if the currency used is the same.