Inventory Turnover Planner methodology

averageInventoryCost = average inventory, or (opening inventory + closing inventory) / 2

turnover = cost of goods sold / average inventory

inventoryDays = period days / inventory turnover

targetAverageInventoryCost = cost of goods sold / target turnover

targetInventoryChange = target average inventory − current average inventory

targetCashEffectAmount = absolute target inventory change

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

• All values must be finite and inside the visible validation boundaries.
• Rates are entered as percentages and calculations retain decimal precision.
• Money and operational records use one consistent period and basis.

Inventory balance method minimum

inventoryMode ≥ 0 — A lower value is rejected before calculation.

Inventory balance method maximum

inventoryMode ≤ 1 — A higher value is rejected before calculation.

Average inventory at cost minimum

averageInventoryCost ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Average inventory at cost maximum

averageInventoryCost ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Opening inventory at cost minimum

beginningInventoryCost ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Opening inventory at cost maximum

beginningInventoryCost ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Closing inventory at cost minimum

endingInventoryCost ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Closing inventory at cost maximum

endingInventoryCost ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Cost of goods sold minimum

costOfGoodsSold ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Cost of goods sold maximum

costOfGoodsSold ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Days in period minimum

periodDays ≥ 1 days — A lower value is rejected before calculation.

Days in period maximum

periodDays ≤ 3,660 days — A higher value is rejected before calculation.

Target inventory turns minimum

targetTurnover ≥ 0.01 inventory turns/planning period — A lower value is rejected before calculation.

Target inventory turns maximum

targetTurnover ≤ 1,000 inventory turns/planning period — A higher value is rejected before calculation.

• Demand, lead times, costs, tax and targets are supplied by the user.
• No jurisdiction, supplier service level, industry benchmark or forecast is embedded.
• The engine retains full precision and display formatting never feeds back into calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

• Results depend on the quality and timing alignment of entered records.
• The model does not replace inventory, accounting, tax, legal or financial advice.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

1. 2026-07-31: Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.