Turns and Days

Turns

Turns are exact ratio arithmetic.

highlighted = computed this step

Divide usage by average

Inventory turns are annual usage divided by average inventory.

turns=annual usage/average inventory\text{turns}=\text{annual usage}/\text{average inventory}
Inventory ratiosThe table exposes average inventory, turns, and days of supply.inventory ratiosvalueaverage inventory50turns4days of supply90

Turns

Inventory turns are 4.

200/50=4200 / 50 = 4
Inventory ratiosThe table exposes average inventory, turns, and days of supply.inventory ratiosvalueaverage inventory50turns4days of supply90