What do you mean by inventory days, Strategic Management

Assignment Help:

Q. What do you mean by Inventory days?

(Average inventory / Cost of sales)     x      365 days

Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories + closing inventories) / 2.  This ratio tells how long the inventory stays in the company before it is sold.  The lower the ratio the more efficient company is trading, however this may result in low levels of inventories to meet demand. A lengthening inventory period may indicate a slowdown in trade and an excessive build up of inventories, resulting in additional costs.


Related Discussions:- What do you mean by inventory days

Distinguishes between deliberate and emergent strategies, 1 .Characterize t...

1 .Characterize the culture of the organization in which you work. How does this culture affect the work of middle managers? Have you experienced deliberate interventions by senior

Develop wind energy offshore, We know from a great deal of research that wh...

We know from a great deal of research that when asked to assign probabilities to uncertain states of nature most people give answers that are over-confident when calibrated against

Critically examine importance of organisational culture, Question 1: Di...

Question 1: Discuss the following business strategies giving examples, and elaborate under what circumstances these business strategies are applied. i) Forward integration

Solve this question as soon as posibble, Tangy spices Ltd, the countries’ ...

Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an Indian company ma

Professional strategies to increase personal networking, Cham Stores is one...

Cham Stores is one of the biggest private sector employer in the Syria. The company has more than 2000 employees in Syria, Emirates and London. In Syria, Cham Stores range from sma

Compensation, compensation strategy template

compensation strategy template

Dominant strategy combination, Janet decides to play a game with her childr...

Janet decides to play a game with her children, Jay and Jill (who are fraternal twins) and Mo. Each child is in their own room and cannot communicate with each other. Suppose Jill

Strategy Formulation, # 14 Strategy formulation presupposes a set of goals ...

# 14 Strategy formulation presupposes a set of goals and objectives. Why aren''t goals and objectives obvious? What characteristics of people and organizations can make setting goa

Knowledge audit, Commence the knowledge audit by identifying the knowledge ...

Commence the knowledge audit by identifying the knowledge gaps and blockages in the organisation, as follows: a)  Consider each of the ten checklist issues listed, and assess fr

Sanlam, write an essay of approximately 1500 words in which you critically ...

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd