How would you evaluate the inventory performance ? What is
Inventory Turn Over ratio and what would you recommend to
increase it under a set of assumptions.



How would you evaluate the inventory performance ? What is Inventory Turn Over ratio and what would..

Answer / Pankaj Verma

Inventory performance can be evaluated using various metrics, including the Inventory Turnover Ratio. This is calculated by dividing cost of goods sold by average inventory for a period. To increase it, strategies like forecasting and demand management, optimizing order quantities, improving supply chain efficiency, and implementing just-in-time inventory management can be employed, assuming resources and capabilities allow.

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