Inventory turns are calculated by annual cost of goods sold, Operation Management

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Inventory turns are calculated by annual cost of goods sold

Inventory turns are calculated by annual Cost of Goods Sold divided by Average Inventory. An online bookseller currently has an average of $10,000,000 in inventor and a turn of 4. It belives if it can do print on demand; it can reduce its inventory to $2,500,000 for the same sales volume. What is its new inventory turn?

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Operation Management: Inventory turns are calculated by annual cost of goods sold

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Operation Management: Inventory turns are calculated by annual cost of goods sold

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