Business Dictionary
Turnover ( Inventory )
A-B C-D E-G H-K L-N O-P R-S T-W
Turnover is expression how many times some product has been sold from the reserved space on the shelf.
Example: Shelf has capacity 100 packages of product. During 1 month additional 500 packages has been refilled in the shelf. Turnover = 500 / 100 = 5X monthly.
The inventory turnover is used as a indicator of utilization of the storage space. Too low turnover means that product does not deserve the space range it has, or that it should be delisted. Fast turnover means that the space for the product should be increased, since the insufficient space means multiple shelving and possible stock out.
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