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What Is the Difference Between Inventory Turnover Ratio and Sellable Velocity in the Product Performance Dashboard?
What Is the Difference Between Inventory Turnover Ratio and Sellable Velocity in the Product Performance Dashboard?
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Written by Treez Admin
Updated over 8 months ago

Please Note: This article pertains to functionality in the Latest Version of Treez.

Question:

What is the difference between Inventory Turnover Ratio and Sellable Velocity in the Product Performance Dashboard?

Answer:

The Inventory Turnover Ratio is when inventory is stocked sold and replenished.

Example:
An inventory turnover ratio of 1.5 means that a company has sold its entire inventory 1.5 times in a given period of time. This indicates that the company is selling its inventory at a good rate and that it is managing its inventory efficiently.

Sellable Velocity refers to how many units are sold per SKU per day when the inventory is in a sellable location.

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