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

Evolution and revolution in Hi-Fi sector, 1. Identify and discuss strategic...

1. Identify and discuss strategic capabilities (resources and competences) of the chosen company using appropriate strategy tools and identify strengths and weaknesses for the firm

Evaluating published research, Choose an academic article and produce an ac...

Choose an academic article and produce an academic review in which you analyse, criticise, and reflect on the paper, of no more than 1200 words. The summary should include some def

Explain the importance of strategy development, Question 1: Custom Wine...

Question 1: Custom Wine Colorado Glasses of Leadville, Colorado, has just collected data from 75 defects from the day's production. a) As quality expert, you decide to con

Strategic position analysis, The assignment for the module is an individual...

The assignment for the module is an individual report which contributes 25% of the module total mark. You should conduct a Strategic Position Analysis (Situation Analysis) on an or

KOTTLER, EIGHT STAGE PROCESS

EIGHT STAGE PROCESS

Future organisation strategy, The company is now aggressively working towar...

The company is now aggressively working towards being the largest retail chain in the country and also being first in profitability.  At the same time the company is exploring maki

Blue ocean starategy, Ask quest''Blue Ocean Strategy’ a. What is it? b. Wh...

Ask quest''Blue Ocean Strategy’ a. What is it? b. What are its characteristics? c. If you were to develop a Blue Ocean Strategy for a firm of your choice (any industry, any size,

Describe the concept of virtual organisation, Question: (a) Describe th...

Question: (a) Describe the concept of virtual organisation. (b) ‘It is critical for an organisation to attain congruence between its strategy and organisational structure

Explorations on leadership, Critically analyse and review the leadership ca...

Critically analyse and review the leadership capabilities of an actual leader-either someone you know or an historical or current leader and clearly identify and link those attribu

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