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

Describe the key characteristics of a role culture, S Company has for many ...

S Company has for many years been a long standing household name, designing and manufacturing electrical appliances for use in the kitchen. It has developed a strong culture over t

How you can recognizing a company’s strategy, Recognizing a Company's Strat...

Recognizing a Company's Strategy 1.   A company's strategy is reproduced in its actions in the marketplace & the statements of senior managers regarding the company's current b

Framework for a company to manage its application portfolio, Question 1: ...

Question 1: (a) Explain a framework for a company to manage its application portfolio. (b) Apply the application portfolio concept to show the different applications for a

Arguments for the controllability principle, Q. Arguments for the controlla...

Q. Arguments for the controllability principle?  - It would be considered fairer by a manager if they were not assessed on costs which are not within their own control. This is

Improve the maintenance strategy in industries, Question: (a) Define ...

Question: (a) Define the term ‘Maintenance'. How does it differ from strategic maintenance? Explain, briefly, the meaning of Maintenance Mix and state how it can be develope

Evaluate total shareholder return, Q. Evaluate Total shareholder return? ...

Q. Evaluate Total shareholder return? Total shareholder return (TSR) TSR = {(Dividend per share + Growth in share price) / (Market share price at the start of the period)

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

Explain different levels of strategy, J plc manufactures a range of cars. T...

J plc manufactures a range of cars. The company is structured on a divisional basis with each division having responsibility for a segment of the market. One of the divisions manuf

Calculate the price earnings ratio, Q. Calculate the Price earnings ratio? ...

Q. Calculate the Price earnings ratio? Price earnings (PE) ratio PE   = (Market share price/EPS)                     (no. of times) The PE ratio is most widely quoted inv

Global environment, what are the issues in a global environment

what are the issues in a global environment

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