Lagerumschlagshäufigkeit (EN)
TermMeasure of the frequency of inventory rotation
Lagerumschlagshäufigkeit
Inventory turnover rate is a key indicator that shows how often the average inventory is turned over or renewed within a specific period (usually one year). This metric is an important indicator of warehouse management efficiency and a company's liquidity. A high turnover rate indicates efficient inventory management, while a low turnover rate may indicate overstocking or low demand.
Calculation
flowchart LR A[Material receipt] --> D[Inventory turnover rate] B[Material issue] --> D C[Average inventory] --> D D --> E[Formula: Turnover rate = Material issue / Average inventory]
In Context
- Typically used together with inventory range, inventory sales, and inventory costs
- Related to: Inventory management, Supply Chain Management, Logistics
- Example use: A company with annual sales of 500,000 € and an average inventory of 100,000 € has an inventory turnover rate of 5