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

Characteristics of organic verses mechanistic organisations, Characteristic...

Characteristics of 'organic' verses 'mechanistic' organisations   Organic Mechanistic Management Style Partici

Explain dimensional performance matrix, Q. Explain Dimensional performance ...

Q. Explain Dimensional performance matrix? The 6-dimensional performance matrix Similar to the balanced scorecard, Fitzgerald (1991) created a 6 dimensional performance m

Miss, how much for a dissertation 15,000 words due in June with the topic i...

how much for a dissertation 15,000 words due in June with the topic is Strategic management? thanks

verify the manufacturer''s claim, A supplier of components to an electroni...

A supplier of components to an electronic industry makes a sophisticated product which sometimes fails immediately it is used. He controls his manufacturing process so that the pro

Strategies and actions for objectives, Strategies and actions for objective...

Strategies and actions for objectives The list of strategies and actions for business objectives are as follows: The company will open the new fitness centre in Perth which

Plan transition curves and superelevation, Current traffic pattern given as...

Current traffic pattern given as below.                                                 ZONE DESTINATION ZONE ORIGIN 1 2 3

Strategy plan that includes resource implications, a) Way a suitable struct...

a) Way a suitable structure for a strategy plan that make sures appropriate participation from all stakeholders of an organization. b) Make criteria for reviewing potential option

Animal processing, what is HACCP and benefits in food industry

what is HACCP and benefits in food industry

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