April 2016
Intermediate to advanced
430 pages
16h 33m
English
Content preview from RFID and Auto-ID in Planning and Logistics
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188 RFID and Auto-ID in Planning and Logistics
15.7 PURCHASING COSTS
With facilities costs and inventory turn rates by item calculated, it was possible to proceed to a more
in-depth analysis of the data. Inventory turns refers to the number of times per time period an item
is purchased and sold. For example, a turn rate of 1.0 indicates that all inventory that was purchased
during the year was ordered. The rst step was to calculate an average turn rate for all items for each
facility in the CoXHHS supply chain. The desired result is that each facility would have at least a
turn rate of 1.0, indicating that the inventory in each warehouse w ...
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