Evaluating Inventory Performance

Commonly used method is inventory turnover ratio $($ITR$)$: measures in $2$ steps how often an organization turns over$/$uses up$/$replaces inventory to generate operating revenue in a given time frame $($usually per year$)$

Efficient ED $($benchmark$)$: $5$ to $10($i$.$e$.,$ organization sells and restocks its inventory every $1$ to $2$ months$),$ which strikes good balance between having enough inventory on hand, and not having to reorder too frequently

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