Operations / Supply Chain

Inventory Turns / Days of Inventory ITR, DIO, DOH

How many times you sell through and replace your stock in a year, and the same fact expressed as days of inventory sitting on hand.

The fork, why two teams get different numbers

The numerator forks: COGS (cost basis, the correct one) versus SALES/revenue (retail habit), and sales-based turns run higher than cost-based by the whole gross margin on identical stock.

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Reference: APICS/ASCM inventory management · GAAP inventory (COGS basis) · SCOR asset-management metrics