Explanation should include a definition of sales forecasting and inventory turnover and a commentary on how inventory turnover can be used to project sales and to plan for reordering and staffing needs.
Process/Skill Questions:
- What is inventory turnover, and how does it affect inventory control?
- How do sales forecasts affect hiring and scheduling decisions?
- How do inventory systems assist in reordering products and projecting future sales?
- Why is inventory turnover a good measure of the success of a business?
- Why would it makes sense to analyze sales forecasts prior to ordering inventory?