A Six Sigma Greenbelt is calculating key lean measures for inventory turns. Which inventory turn measure is calculated by adding beginning inventory and inventory purchases then subtracting the ending inventory?
A)Cost of Goods Sold.
B)Inventory Turnover Ratio.
C)Average Inventory.
D)Calculation of Inventory Turnover Ratio.

Question

Quizplus · Accepted Answer

Cost of Goods Sold is the inventory turn measure calculated by adding beginning inventory and inventory purchases then subtracting the ending inventory. Key lean measures for inventory turns include Calculation of Inventory Turnover Ratio, Average Inventory, Inventory Turnover Ratio, and Cost of Goods Sold.

A Six Sigma Greenbelt Is Calculating Key Lean Measures for Inventory