How inventory turns influence operations cost Total Revenue
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As the the inventory turns increases the operations cost total revenue ratio decreases ,that means we can reduce expenses by increasing inventory turns.
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How Gross Margin change in function of Inventory ?
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-As the inventory increases the Gross Margin decreases for Industries which is not profitable, But for Consumer discretionary it improves slightly gross margin.
So the impact of inventory on gross margin depends on the industry concerned.
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How inventory turnover influence Growth Revenue ?
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When the inventory turns increases :
-Consumer Dicretionary 's Growth revenue decreases , that means we don t take advantage of the economies of scale anymore and that influences the revenue
-Industrial 's Growth revenue increases which can be a result of reducing spoilling and absolescence cost .
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