Glossary > —I— > Inventory Turns
Inventory Turns
The rate that inventory is used and replaced. Calculated as
[(Daily Demand Rate * 365) / Average Inventory]
Where:
• Daily Demand Rate is calculated as Customer Demand + Resupply Demand
• Average Inventory includes in transit material among locations.
For comparison fields, there are three values shown per field:
• (A) — The value from the first scenario selection
• (B) — The value from the compare scenario selection
• (Delta) — The difference between the two selections
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