Big Idea Measuring Sourcing Performance

We calculated an inventory turnover number in the sample problem in class. What would happen to inventory turnover if a firm decided to move more of its inventory forward in the supply chain? (Pick all that apply)

With no change in sales, inventory turnover would go down because inventory values are higher

With no change in sales, inventory turnover would go up because inventory values would be lower

Inventory turnover could stay the same over even be higher if sales volume also increased

Nothing as inventory values do not reflect placement location