Inventory day’s calculation
An easy way to calculate the average inventory holding for a particular product or group of products.
Inventory value /COGS X Days reflected in the GOGS amount
A small test to give your people based on the above. If
revenue of a particular SKU grows by 10% and the days inventory says the same
will the inventory $ holding remain the same, decline or increase. Also what
would the cash consequence be.
Have a great day
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