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Inventory Turnover Rate

Purpose -

Measures how quickly inventory is sold and replaced over a period.

Operational Definition -

(Cost of Goods Sold / Average Inventory)

Type of Metrics -

KPI

Function -

Planning - Deployment

Associate Function -

Planning - Deployment

Desired Trend -

Higher the better

Recommended Frequency - 

Monthly

External References -

https://www.inboundlogistics.com/articles/supply-chain-metrics/

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