Inventory Turnover

1096 WordsSep 8, 20105 Pages
Inventory turnover Viviana Palacios MGT521 Professor Edward Dempsey July 26, 2010 The investment of a company’s success depends on their inventory. Inventory turnover is a ratio showing how many times a company’s inventory is sold and replaced over the period of time. The risk of Kudler Fine Foods was to make sure that their perished goods had a fast inventory turnover rate. The importance of high inventory turnover was expected to protect the brand’s integrity and vision of keeping all goods fresh. Inventory turnover is considered a key measure of management efficiency. It is a measure of how often, during a course of a year, a company sells and replaces its inventory of component parts, materials and final products. As a general…show more content…
This can devise a workable system when a safety inventory stock can be reached and distributed on a timely basis. The analysis of this can ensure that the company’s sees an unexpected rise in product demands. In addition Kudler Fine Foods can analyze and calculate the impact of seasonal inventory fluctuations and incorporate such into inventory management strategies. Employees should be trained to appropriate organize a list in seasonal selling products. Inventory analysis on seasonal products can prevent the products to be on the shelves for less period of time. In addition another inventory strategic that can beneficial and can improve inventory turnover is to create a company’s forecasting mechanism and the volatility of the marketplace. Both forecasting and volatility of the market can have an impact on inventory decisions. Furthermore, in a company’s inventory security, helping establish and regular reviews can ensure that these goods reached excellent status. During the operations of a successful inventory analysis , identifying and managing excess or obsolete inventory can determine why these goods are being asked in high demands. Inventory management decisions that can help Kudler Fine Foods success is the reorganization that inventory is deeply interrelated with employee training. The understanding of inventory analysis can help this business to improve their daily operations. As well management should provide employees with
Open Document