Inventory turnover rate refers to the ratio of the total amount (or total quantity) of inventory in a certain period of time to the average amount (or quantity) of inventory in that period. It refers to the ratio of inventory turnover in a certain period (such as a year or half a year).
Speed. In layman's terms, inventory turnover rate is the number of turnovers of inventory goods within a certain period of time, and is an indicator of the speed of inventory turnover. The greater the inventory turnover rate, the better the sales situation.
"This..." Jiang Xiaowei pushed up his glasses with his index finger, "Hey... General Manager Chen, to tell you the truth... although our former financial manager has been tracking the indicator of inventory turnover rate, he also
They mentioned it to us on some occasions. But, well... people didn’t pay much attention to it..."
Niu Xiaobai heard Chen Wanshi say: The purpose of assessing inventory turnover rate from a financial perspective is to plan and predict the cash flow of the entire company, thereby assessing the demand of the entire company and the level of supply chain operations. Improving the inventory turnover rate is important for accelerating funds
Turnover, improving capital utilization and liquidity have a very positive effect.
On the other hand, if the shelf life of the material and funds allow, the inventory control target days can be appropriately increased to ensure a reasonable inventory. On the contrary, the inventory control target days can be appropriately reduced.
"That's right! I've bought all the materials and put them in the warehouse. Since all the money has been spent, why do we do this?" Hu Hongfei agreed lightly. He glanced at Chen Wanshi, held his head high, and said with a high-spirited expression
He said in a tone of voice: "If you want to meet or even exceed customer expectations, you must have a good timely delivery rate. For our production department, the materials in the warehouse must be enough, the more the better! As the saying goes
Okay, if you don’t want to let go of the child, you can’t trap the wolf. Although...General Manager Chen, your management experience is not very rich, but you will understand this simple truth, right?"
After Hu Hongfei finished speaking, he poked Jiang Xiaowei, who was sitting next to him, with his elbow, and said in a weird voice: "Manager Jiang, is there nothing wrong with what I said?" The latter chuckled, looked at Chen Wanshi, and said
I looked at Hu Hongfei but didn't answer.
Chen Wanshi shook her head gently and said in a very firm tone: "No! We must not only ensure timely delivery, but also increase the inventory turnover rate. We must not have too many sluggish materials in the warehouse!"
"No? This... haha!" Hu Hongfei laughed hoarsely, "General Manager Chen, do you think we are playing house? Do you know? To ensure timely delivery, the warehouse must hold a large amount of inventory. This is
It’s common sense. If you don’t have enough inventory, it’s hard for a clever woman to make a meal without rice. How can you guarantee a timely delivery rate? You want the horse to run well, but you also want the horse not to eat grass... Humph! How can such a good thing be possible?