what is moving and what is not
Slow Moving Stock
Where the stock on hand has been available for 10 x its suply lead time (in weeks)
Stock unlikely to be sold, or no longer able to be sold. A basic definition may be stock not sold for 6 months, or for example 20 x its supply lead time (in weeks).
Stock Age Analysis
Show stock on hand, aged by the Month (or week) the stock was received.
Inventory Analysis Examples
A) Inventory No.Weeks Supply Calculation
weeks supply = Qty. available / avg.weekly sales (or useage). Shows how many weeks current stock is expected to last, based on average sales.
B) Inventory Yearly Turnover Calculation
Yearly Turnover = Useage in Year / Average Inventory. Shows how many times the Average Inventory Qty is used in a given period. The higher the turnover rate the quicker the investment is being turned into cash.
C) Inventory Supply Lead Time
The average time from placing a Purchase/Order until stock is available to sell (or use).