This activity is used to view turnover rates of inventory parts for a required period. The turnover rate is calculated by dividing the cost of goods sold (Issued Value) by the average inventory balance (Average Inventory Value). This ratio allows the planner or controller to see how frequently the company needs to replenish its existing inventory, based on part movements. Generally a higher number is better. However, a number too high might suggest the company is selling goods faster than it can be replenished. If a company runs out of a particular item it risks losing sales to a competitor who has the item in stock.
This activity can be performed from Inventory Turnover Rate page, you need to enter the required Year and Period for from-period. The to-period will have the current year and the period as default values, which can be replaced.