Practice Quiz

Supply Chain Management

Category - Inventory

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Both inventory turnover and GMROI are stated as an annual turnover, but due to ________ items they may be measured for a period of few months.
  1. Defense
  2. Electronic
  3. Seasonal
  4. Fragile
Explanation
Answer: C - Both inventory turnover and GMROI are stated as an annual turnover. However, the period being measured does not necessarily have to be a twelve-month period. In some situations, particularly for seasonal items, inventory turnover and GMROI can be measured for a period of a few months, with the result being "annualized" for comparison purposes.
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