Inquiry about DOH, Turn over Ratio and FSN Analysis if Inventory on hand = zero

#1
Hello Guys
Just need to ask a question regarding the calculation of Inventory Turn Over Ratio and DOH for quarter (90 days) as I used the turnover ratio to determine if this item is Fast, Slow or Non moving item

My case is:
I have two areas, One is the Area Stores which sell the inventory, and the second is the main warehouses which issue the goods to the Area store (the stock in this area isn't sold).

My Issue is:
I used the COGS/Avg. Inv. in Area stores to calculate the Inventory days in a specific period (90 days) but this formula I cannot rely on to calculate the inventory days in Main Warehouses as I don't have COGS and I still own the inventory.

I tried to use this formula (DOH = Inventory on Hand / Average Usage), but I stuck if the on hand stock in that period is Zero.

I do appreciate if anyone can help in that.
 

Miner

TS Contributor
#2
Hello Guys
Just need to ask a question regarding the calculation of Inventory Turn Over Ratio and DOH for quarter (90 days) as I used the turnover ratio to determine if this item is Fast, Slow or Non moving item

My case is:
I have two areas, One is the Area Stores which sell the inventory, and the second is the main warehouses which issue the goods to the Area store (the stock in this area isn't sold).

My Issue is:
I used the COGS/Avg. Inv. in Area stores to calculate the Inventory days in a specific period (90 days) but this formula I cannot rely on to calculate the inventory days in Main Warehouses as I don't have COGS and I still own the inventory.

I tried to use this formula (DOH = Inventory on Hand / Average Usage), but I stuck if the on hand stock in that period is Zero.

I do appreciate if anyone can help in that.
You are not really in the correct forum for this type of question. Metrics and statistics are quite different.

However, I have a manufacturing background, so I understand your question. Try substituting COGP (Cost of Goods Produced) for COGS (Cost of Goods Sold) in your Turnover Ratio formula.
 

noetsi

No cake for spunky
#3
He is in the forum where one person understood his question :) Probably not a huge number of forums for industrial engineers I would guess.