Evaluating inventory management performance using a turnover curve

Abstract

Managing inventory levels in the aggregate is a common concern of senior management. A generalized formula (turnover curve) developed in previous research that mimics practical inventory control is used to audit inventory control performance of inventories in the aggregate and at multiple stocking points. The same turnover curve is used to estimate the impact of changing the inventory control procedures or to set new targets for inventory levels. It is a simple yet powerful tool for evaluating inventory managerial performance that can be developed from readily available company data. This research provides additional examples to further validate the practical usefulness of the turnover curve.

Citation

Ballou, R.H. (2000), "Evaluating inventory management performance using a turnover curve", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 1, pp. 72-85. https://doi.org/10.1108/09600030010307993

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