Define the term "inventory turn" and discuss why it is an important indicator of an organization’s profitability. Give an example of an item that would have a fast turn and a slow turn.
Define the term "inventory turn" and discuss why it is an important indicator of an organization’s profitability. Give an example of an item that would have a fast turn and a slow turn.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Define the term "inventory turn" and discuss why it is an important indicator of an organization’s profitability. Give an example of an item that would have a fast turn and a slow turn.
Expert Solution
Inventory Turn
"Inventory Turn" is the rate at which a company recoups its inventory in a given period usually in a year.
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