What this calculator does
Turnover is annual issue or usage value ÷ average inventory value. It describes movement of value, not whether a particular critical spare is correctly stocked.
When to use it
Use it to trend store-level capital use, investigate excess or obsolete holdings, and compare like inventory classes with consistent valuation rules.
Inputs and formula
Average inventory normally uses opening and closing value or a more representative periodic average. Issue value should exclude transfers that do not represent consumption.
Worked example and interpretation
$120,000 annual usage against $30,000 average inventory gives four turns per year. A lower number may be appropriate for insurance spares.
Practical notes and limitations
High turns can be achieved by understocking. Pair turnover with fill rate, stockouts, criticality, and lead-time exposure.