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

Mensa, Develop a five-year strategic plan with cost estimates and a time li...

Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Your plan should include/address the f

Explain activity based management, Q. Explain Activity based management? ...

Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources.  The aim is that once cos

Jidoka - quality at source, Jidoka - Quality At Source Jidoka was firs...

Jidoka - Quality At Source Jidoka was first introduced by Dr Taichi Ohno into the Toyota Motor Company in the early 1960s. In the process of producing an efficient material fl

Leadership, i have to redo the assignment

i have to redo the assignment

Movie Exhibition Industry, Review trends in the general environment that af...

Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners.

Marketing strategy, Select an existing business that has recently launched ...

Select an existing business that has recently launched a new product. You may also use your own company. Consider how the organization's marketing strategy has benefited the new pr

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

Sales Strategy for next 3 Years, Document printing company create 20 page s...

Document printing company create 20 page sales strategy for next 3 years to address Digital change and less future paper prints

Coca-Cola vs Pepsi, How would you respond to Coca-Cola’s change in sales po...

How would you respond to Coca-Cola’s change in sales policy? How would you ensure Pepsi’s board that this response will allow you to remain competitive and profitable?

Identify suitable non-financial performance measures, Identify suitable per...

Identify suitable performance measures for an insurance company to detect false claims and measure the speed of how they are processing claims? Identify suitable non-financial p

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