Average Payment Period for Production Materials

This ratio calculates the average number of days it takes for a company to turn its inventory into sales. It’s also known as the inventory days formula.

Systems that integrate data from across the supply chain to improve the accuracy of planning and scheduling of manufacturing processes.

In quality management, a threshold level that represents a satisfactory average quality level in a batch or series of lots during sampling inspection.

A periodic process, typically done yearly, where a business physically counts its entire inventory to verify stock levels and reconcile with recorded inventory data.