Flow Rate Measurement

Gambaran umum flow rate measurement perusahaan yang berkaitan dengan: T = I / R
T = time
I = inventory
R = rate

Inventory Turn Over Ratio?

ITO = Sales in a Year / Inventory value.

ITO = how many inventory turns over with current inventory value, compared with yearly sales volume.

if ITO = 3, means the inventory can lasts for 12/3 = 4 months.

Time = I / R
3 months = I / R
R = I / 3

R = Monthly Rate of inventory usage