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

Perform external and internal audits, Perform external and internal audits ...

Perform external and internal audits Follow the strategic development content then Aldi can perform external and internal audits. In external audit is considered an important

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Define strategic management, QUESTION 1 Strategic Management is current...

QUESTION 1 Strategic Management is currently the core of business policy discipline everywhere (a) Define Strategic Management (b) Write short notes on the four important

Explain functional strategy, Explain Functional strategy Functional st...

Explain Functional strategy Functional strategy for J plc will be concerned with how the constituent parts of the organisation can effectively deliver the corporate and busin

Strategic managerial communications, The objective of the term project is t...

The objective of the term project is to demonstrate your understanding and ability to apply the body of knowledge covered in this course. The goal will be on identifying communicat

Management strategic planning, You are an asset manager for a large public ...

You are an asset manager for a large public utility organisation. The organisation has a range of assets, ranging from major distributors to minor assets directly serving users (fo

Good y and good x, a) What can you say about GOOD Y and GOOD X (a good can ...

a) What can you say about GOOD Y and GOOD X (a good can be an item, a commodity, etc.).  Name a pair of good X and good y that can show this kind of relationship. b) Is the relati

Research has identified general strategies for overcoming, QUESTION 1 I...

QUESTION 1 Individuals at all levels are prone to resisting change. What are the five main reasons why individuals resist change? QUESTION 2 Research has identified six

E-commerce to an organisation, 1 - Analyse the business factors that under...

1 - Analyse the business factors that underpin the requirement for an e-strategy in an organisation. 2 - Talk about the benefits of e-commerce to an organisation.

Discuss the key activities of the strategic manageme, Discuss the key activ...

Discuss the key activities of the strategic management process. Explain why it is important for managers to recognise the interdependent nature of these activities.

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