Set optical sights on inventory turns


Measure your inventory turns monthly.

Key Points

Inventory as cash

I learned a lot by watching and listening to Dan. I learned that inventory is not just merchandise; it's cash-hard-earned investment dollars. Those investment dollars are hard to come by in a large company, so the decision to invest them in inventory had to be justified constantly.

Inventory turns

Dan's performance was measured in a number of ways. One way to measure how hard-invested inventory dollars are working is to measure the number of times a year the inventory sells through. This is commonly referred to as "inventory turns." It is defined as the number of times an inventory is sold in a year.

I like to compute this number every month. I use the month-end inventory value figure, which gives me a reading on that month's performance. I can graph that performance.

Related Videos
 John Bladen, MBBS, BSc, MRCS, PGCert, PhD, FRCOphth, consultant ophthalmologist and oculoplastic surgeon, King's College Hospital NHS Foundation Trust, London, UK, speaks with Ophthalmology Times Europe's® Caroline Richards
rande, CFP, and John S. Grande, CFP, of Grande Financial Services, continue their discussion with Ophthalmology Times®' Sheryl Stevenson
What keeps you up at night?
S.K. Steven Houston III, MD, discusses retina innovations in use in his practice, including the NGENUITY 1.4 upgrade from Alcon
Caesar Luo, MD, shares his key take-aways on diabetic retinopathy progression in anti-VEGF versus FA implant
Related Content
© 2023 MJH Life Sciences

All rights reserved.