Average Days to Sell Inventory

An inventory management approach that prioritizes products based on their classification in the ABC analysis, focusing more resources on the most valuable items.

Just-in-Time (JIT) inventory is a strategy where businesses seek to reduce inventory costs by receiving goods only when they are required for production or sale. Instead of holding large stocks of raw materials or finished goods, companies use JIT.

The average time taken by a company to pay for materials used in production after receipt. It’s a measure of the payment cycle for production inputs.