Stock turns
QCD: measuring manufacturing performance, Published by the Department of Trade and Industry in 2004 suggested that Stock Turns (ST) is: ‘…a measure of how frequently the stock (raw material, work-in-progress and finished goods) are turned over in relation to the sales revenue of a product.’
ST reflects the level of control and coordination of materials that flow through the process. ST ratios reveal how much control a business has over a process. Tightly controlled processes need only low levels of raw material and work-in-progress (WIP).
Stock Turns (ST) = Sales turnover of product / (Value of raw material + Work-in-progress + Finished goods)
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