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

What is strategy & why strategy is important?, What Is Strategy & Why Strat...

What Is Strategy & Why Strategy Is Important? Managers at all companies facade three innermost questions in view strategically concerning their companies' current circumstances

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

Time study, Times it consists concerned with the determination of the ...

Times it consists concerned with the determination of the amount of time required to perform a unit of work. It consists of process of observing and recording the tim

Explain about opportunity cost pricing, Q. Explain about Opportunity cost p...

Q. Explain about Opportunity cost pricing? Opportunity cost pricing is considered most mathematically correct way of viewing transfer pricing. Reason is that it looks at transf

Discuss the strategic management models, VRC is a family owned business whi...

VRC is a family owned business which has been manufacturing racing cycles for over a century. Over the years, the company has been relatively successful, although its growth has te

Competitive strengths, a) Use appropriate tools to examine the  affects of ...

a) Use appropriate tools to examine the  affects of present business plans. b) Review the position of an organization in its present market. c) Measure the competitive strengths

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

Why a strategic plan, Most executives are related with business planning. A...

Most executives are related with business planning. A business plan is typically written every year and includes things like a marketing plan, cash flow projections, a mission stat

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