Calculating Inventory Turnover Rate—Exercises

IMPORTANT
It is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Required Data

Sales Data

Purpose: The purpose of this exercise is to show you the required data that has to be entered to be able to perform the main exercise below.

  1. Process a large number of customer orders for different parts, and different customers over a period of some months.

No general exercise available

Main Exercise

Purpose: The purpose of this exercise is to show you how to use the Inventory Turnover Rate report.

Windows:
Aggregate Inventory Transactions per Period
Order Report
Statistic Periods


As part of the assortment control process, you are interested in how the turnover rate has developed.

Calculating Inventory Turnover Rate

  1. Update your previous transactions by using the Aggregate Inventory Transactions per Period window. Enter your site in the Site field and click OK.
  2. Open and populate the Statistic Periods window. Verify which years and periods you will use for calculating inventory turnover.
  3. Open the Order Report window. Click the F3 key and query for the INVENT component. View which reports are available. Select the Inventory Turnover Rate report from the list.
  4. Enter the applicable year and period, as well as commodity group and site.
  5. Click OK.
  6. Review the printed report.