Case Study: Sequoia Distributing Inventory Turnover
Inventory turnover will always be a primary metric for supply chain professionals and should be a critical component of every professional's management toolbox. This case illustrates the different perspectives of inventory turnover guiding the professional to understand which management activities offer the greatest, most effective leverage from the corporate perspective down to the part number level.
This case begins at a macro level calculating historic turnover using a balance sheet and income statement, then uses pro forma projections to identify target inventory levels for the following year to reach corporate inventory turnover goals and determine the maximum amount which should be invested for improvements.
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