What is inventory turn in SAP MA-SMOPS - SmartOps?

SAP Term: inventory turn

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: The number of times that a company’s inventory cycles over per year or per a specified time period.

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• Key Concepts: 
  Inventory turn, also known as stock turn or inventory turnover, is a measure of how quickly a company is selling and replacing its inventory. It is calculated by dividing the cost of goods sold (COGS) by the average inventory for a given period. The higher the inventory turn, the more efficiently a company is managing its inventory. 
  
  How to use it: 
  Inventory turn can be used to measure the efficiency of a company’s inventory management. It can be used to compare different companies in the same industry or to compare a company’s performance over time. It can also be used to identify areas where improvements can be made in order to reduce costs and increase profits. 
  
  Tips & Tricks: 
  In order to get an accurate measure of inventory turn, it is important to ensure that all inventory is accurately accounted for and that all COGS are accurately reported. Additionally, it is important to consider seasonal fluctuations when calculating inventory turn as this can have an impact on the results. 
  
  Related Information: 
  The MA-SMOPS SmartOps component of SAP provides tools for managing and tracking inventory levels, costs, and sales. This includes features such as automated replenishment, demand forecasting, and analytics that can help companies optimize their inventory management processes and improve their inventory turn.