What is warehouse turnover, and turnover days

Inventory turnover days is the number of days from the beginning of the acquisition of inventory/products into the warehouse, until consumption, sales. The lesser the number of days of turnover, the faster the realization of zero inventory/inventory. The shorter the inventory occupied by the private non-profit organization's funds, the more efficiently the inventory/finished goods are managed. Inventory (stock) turnover days = 360 / Inventory turnover times = (average inventory x 360)/cost of goods sold Inventory (stock) turnover times = cost of goods sold/average inventory Inventory turnover days formula Inventory turnover rate = annual sales/average annual inventory value It can also be divided into: Raw material inventory turnover rate = annual material consumption/average inventory value of raw materials Inventory in progress turnover rate = value of production/average inventory value of work in progress Production Value / Average Inventory Value of Work-in-Process Inventory Turnover Rate Definition = [(Average Monthly Amount of Purchased Direct Materials Received in the Current Year) x 12] ÷ (Average Monthly Amount of Purchased Direct Materials Inventoried in the Current Year) Below are the relevant references The traditional inventory refers to the items that are stored in the warehouses. From a logistics point of view, since there is an unavoidable time lag between the transformation of materials in various states, materials that are idle during this time lag are considered inventory. From a broader sense, all idle for future resources are inventory. Editorial I. Quantitative indicators for performance evaluation of inventory Clear and consistent performance evaluation of inventory is a key part of the inventory management process, and performance evaluation should reflect both service and inventory levels. If focusing only on the inventory level, planners will tend to have the lowest level of inventory, and may have a negative impact on the level of service, in contrast, if the performance evaluation of a single focus on the level of service, will lead to planners to ignore the level of inventory, so performance evaluation should be able to clearly reflect the expectations of the enterprise and the actual needs. (a) the degree of utilization of warehouse resources 1. real estate utilization = (warehouse floor area / real estate area) × 100% 2. warehouse area utilization = (warehouse usable area / warehouse floor area) × 100% 3. warehouse capacity utilization = (the actual number or volume of goods in stock / warehouse should be stocked number or volume) × 100% 4. effective range = (inventory / average daily demand) × 100% 5. Investment costing = (investment cost / (unit of inventory / unit of time) × 100% 6. equipment intact rate = (number of equipment intact during the period / the total number of equipment during the same period) × 100% 7. equipment utilization rate = all the actual hours of equipment / the total capacity of the equipment (hours)) × 100% (ii) service level 1. out-of-stock rate = (number of out-of-stock / the number of customer orders) × 100% 2. customer satisfaction level = (number of satisfied customer requirements) × 100% 2. customer satisfaction level = (number of satisfied customer requirements) × 100% 2. customer satisfaction level = (number of satisfied customers / the number of customers / the number of customers) × 100% 2. Degree of customer satisfaction = (number of customer requirements satisfied/number of customer requirements) × 100% 3. On-time delivery rate = (number of on-time deliveries/total number of deliveries) × 100% 4. Rate of compensation fee for cargo loss and difference = (total amount of compensation fee for cargo loss and difference/total amount of business income for the same period) × 100% (III) Storage capacity and quality 1. Warehouse capacity realization rate = (actual throughput during the period/designed throughput of the warehouse) × 100% 2. 100% 2. Accuracy rate of import and export = (Throughput in the period. The total number of errors / the throughput in the period) × 100% 3. commodity defect rate = (the amount of commodity defects in the period / the total number of commodities in the period) × 100% Edit this paragraph II. Evaluation of inventory turnover rate Inventory turnover rate has a very important significance for the enterprise's inventory management. A manufacturer, for example, derives its benefit from the cyclic activity of capital → raw materials → products → sales → capital, and if this cycle is fast, that is, when the turnover is fast, the rate of benefit under the same amount of capital is also high. Therefore, the speed of the turnover represents the measured value of the interest of the enterprise, and is called the "inventory turnover rate". There is no absolute evaluation standard for the inventory turnover rate, and it is usually compared with other industries or analyzed in comparison with other periods within the enterprise. Inventory performance evaluation and analysis, inventory turnover rate is the focus of evaluation. (I) The basic formula for calculating inventory turnover ratio The formula for calculating inventory turnover ratio can be calculated as follows in the actual evaluation: Inventory turnover ratio = (Quantity in use / Quantity in stock) × 100% The quantity in use is not equal to the quantity in stock, because the quantity in stock includes a part of the spare quantity. In addition to this, there is also the calculation of inventory turnover in terms of dollars. For the same reason, the amount in use is not equal to the amount out of stock. Inventory turnover = (amount in use / amount in stock) × 100% amount in use or amount in stock, is the amount of time, so the amount of a period to study the provisions of the following formula: Inventory turnover = (the total amount of the period out of stock / the average amount of the period in stock) × 100% = (the total amount of the period out of stock × 2 / the amount of the beginning of the period in stock + amount of the end of the period in stock) × 100% Inventory turnover rate formula is (to the monthly average inventory turnover rate, for example): 1, raw materials inventory turnover = the total cost of raw materials out of storage during the month / average inventory of raw materials 2, in the production inventory turnover = the cost of finished goods materials warehoused during the month / the average in the production inventory 3, finished goods inventory turnover = the cost of materials sold during the month / the average inventory of finished goods in the warehouse