Same inventory, one person rushes to replenish, another urgently liquidates — the difference is "turnover."
What turnover is
Inventory turnover = sales over a period ÷ average inventory. Higher means goods move fast and capital is tied up less.
Use it for three decisions
- High turnover, low sellable: replenish, don't wait for stockout
- Low turnover, high inventory: liquidate, don't wait for expiry or scrap
- Mid turnover: maintain, replenish in small steps on rhythm
Don't just look at absolute sales
A SKU selling 100/month but stocking only 50 may be healthier than one selling 500/month but stocking 2000.
Turnover measures "how fast money moves," not "how much you sell."
Pull each SKU's turnover monthly, mark "replenish / maintain / liquidate," and both liquidation and replenishment get a basis.