INVENTORY TURNOVER RATIO ANALYSIS PROCESS

Created by ChecklistGuro (https://checklistguro.com)

[ ] Fetch Inventory Records: Retrieve all current stock levels and unit costs from the Inventory Data Model.
[ ] Fetch Cost of Goods Sold (COGS): Retrieve total COGS values from the Financial Records Data Model for the period.
[ ] Calculate Average Inventory Value: Sum the value of all retrieved inventory items and divide by the number of entries to find the average stock value.
[ ] Compute Turnover Ratio: Execute the formula: COGS / Average Inventory Value.
[ ] Determine Days Sales of Inventory (DSI): Execute the formula: 365 / Inventory Turnover Ratio.
[ ] Benchmark Comparison: Compare the calculated ratio against the predefined Industry Standard threshold.
[ ] Review Discrepancies Task: Create a task for the Inventory Manager if the ratio falls below the required threshold.
[ ] Create Analysis Report Entry: Create a new entry in the 'Inventory Analysis Reports' data model containing the calculated metrics.
[ ] Update Inventory Status: Update the 'Last Analyzed Date' and 'Current Performance Status' in the Inventory Data Model.
[ ] Generate Performance Summary Report: Generate a visual report/dashboard summarizing the turnover trends and DSI.
[ ] Notify Stakeholders: Send an email to the Operations Director with the final turnover ratio and the link to the report.
[ ] Audit Low-Turnover Items: Create a task for the Procurement Team to investigate specific SKUs identified as 'Slow Moving'.

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