How to calculate the turnover rate?

hyudolee

Hi, I have a question about calculating the turnover rate.

To calculate it, I use this formula.

Formula:

IF Inventory <= 0 THEN 0 ELSE IF Inventory <= MOVINGSUM(Demand, 1, 1) THEN 1 ELSE IF Inventory <= MOVINGSUM(Demand, 1, 2) THEN 2 ELSE IF Inventory <= MOVINGSUM(Demand, 1, 3) THEN 3・・・・

But this formula continues forever if I want Turnover rate = 30. 

Does any body has any solution?

 

	2021/1/1	2021/1/2	2021/1/3	2021/1/4	2021/1/5
Demand	0	200	300	200	100
Inventory	600	400
Turnover rate	2day	1day			30day

 

abhay.kanik

@hyudolee 

 

You can calculate your end period for formula in a separate line item which will reduce your length of formula. Use the day(Date formatted line item) function to figure out the day. now you will be able to recreate your formula like this IF Inventory <= MOVINGSUM(Demand, 1, DAY) THEN DAY ELSE 'OTHER CONDITION'

 

Thanks

Abhay

JaredDolich

@hyudolee 

I would like to add more to @abhay.kanik answer and perhaps stretch you a little bit to consider making this a bit more formal.

Your question seems to be more aligned with a "Days of Supply". Which takes the inventory and divides by an average daily sale. That might be more intuitive to you.

If you're determined to calculate a turnover, the best way I know of to calculate an inventory turnover is using these equations:

Turnover = Sum(Sales) / Average Inventory

Average Inventory = [Beginning Inventory + Sum(Ending Inventory)] / Number of Periods + 1

Here's an example in Anaplan. Also, try to keep an inventory balance set for accuracy. Ending = Beginning + Receipts - Sales.