A measure of how frequently the stock is turned over in relation to annual sales turnover of a product. ST reflects the level of control and co-ordination of materials that fow through the process. Stock levels are key indicators of the leaness of the process and are directly related to the simplicity of production flows. In contrast, excess inventory means unnecessary cost.
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Annual sales turnover of a product
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Stock Turns =
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Value of raw material + WIP + finished goods
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- Units : none
- Data Required
- Annualised sales turnover of product
- Raw material value for product
- WIP level of product
- Finished goods stock of product
