If I understand, you're talking about what's commonly called inventory turns. It's used as a measure of inventory efficiency. Ideally you want to have enough inventory to keep running without excess. - the more inventory you have, the more of the company's money that is tied up and can't be used for other things.
Take the total inventory. Determine how many times you would use that amount of inventory in a year. If you generally keep about a month's worth of parts, you would have 12 turns per year.
Is that what you're talking about?
Thanks to howste for your informative Post and/or Attachment!
Inventory turnover ratio is showing how many times a company's inventory is sold and replaced over a period.
Iit is calculated as:
SALES WORTH/INVENTORY WORTH.
If your cost of goods sold during the period is $100 and your average finished products inventory during the month is $10, then your finished products inventory turnover ratio is 10 ($100 / $10 = 10). This implies that you are able to sell out your inventory ten times during the reporting period.
A high inventory turnover ratio indicates that the product is selling well. If the value of the inventory turnover ratio is low, then it indicates that the management team doesn't do its job properly in managing inventories.
The level of inventory that should be kept depends from one industry to another. For instance manufacturers and retailers should have a higher level of inventory, whereas software makers or advertising companies require lower levels of inventories.
Thanks to HiroMatsu for your informative Post and/or Attachment!
Maybe that is the problem? too much to sift through and not enough knowledge to know which ones to look at? Happens to me all the time.
__________________
"It's fun to have fun, but you have to know how", Dr. Seuss
Man may have invented fire, it took a woman to learn how to play with it.
Thanks to SteelMaiden for your informative Post and/or Attachment!
Please also advice when i am calculating first time ITR which inventory i have to take and how i will caluculate the same
If I am not mistaken, you need this information for your TS purpose. Could you get it from your accounting department? Even with our local financial package, the accounting boys could give me this kind of information with a few strokes of the key.
Inventory Turn Over Ratio
Re: Inventory Turn Over Ratio
. If the value of the inventory turnover ratio is low, then it indicates that the management team doesn't do its job properly in managing inventories
. 
Linear Mode
