The efficiency of an inventory system is often measured by the turnover ratio. (TR), defined by
![](https://test.transtutors.com/qimg/865ddffa-a565-4567-a944-15713edecae2.png)
a. Does a high turnover ratio indicate an efficient inventory system?
b. If the EOQ model is being used, determine TR in terms of K, D, h, and Q.
c. Suppose that D increases. Show that TR will also increase. Does this make intuitive sense?