![]() ![]() You'll have just enough inventory to fulfill market demand and there's no such thing as too much or too little. If your inventory turnover ratio is in this range, your restocking and sales rates are balanced. While no two businesses or scenarios are alike, the ideal inventory turnover ratio for retailers lies between two and six. Some areas influenced by inventory turnover include everything from packaging and shipping to purchasing and ordering. Effective inventory control, also known as stock control, gives a clear insight into what is on hand, is required to determine the turnover ratio. Monitoring how efficiently the restaurant goes through its raw materials might provide a lot of information. A higher ratio is better than a low ratio since a high turnover ratio indicates strong revenue. The turnover ratio is determined by dividing the cost of products sold by the average inventory during the same time period. It is also used to determine how long it will take to sell the inventory on hand. This might be done once a month, quarterly, or once a year. The inventory turnover ratio measures how frequently a company's inventory is changed over a period of time.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |