Inventory Turn Optimization
Strategies aimed at increasing the frequency with which inventory is sold and replaced, improving cash flow and reducing holding costs.
Implications
Strategies and practices aimed at improving the rate at which inventory is sold and replaced over a specific period, often used to increase efficiency, reduce holding costs, and improve cash flow in retail and manufacturing operations.
Example
Example: A fashion retailer implements inventory turn optimization by introducing a just-in-time inventory system, allowing for faster turnover of seasonal items and reducing the need for end-of-season discounts.
Related Terms
Different from simple inventory reduction, which might lower stock levels, inventory turn optimization focuses on improving the speed and efficiency of inventory movement, balancing stock levels with demand.
Get INSTANT comprehensive market research of any industry
Chat with AII Consultant Now!
