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Obsolete Inventory means items that have expired, are redundant or Inventory Value means with respect to any Inventory of a Loan Party at the time of any determination thereof, the standard cost determined on a first in first out basis and carried on the general ledger or inventory system of such Loan Party stated on a basis consistent with its current and historical accounting practices, in Dollars, determined in accordance with the standard cost method of accounting less, without duplication, (i) any markup on Inventory from an Affiliate and (ii) in the event variances under the standard cost method are expensed, a Reserve reasonably determined by the Agent as appropriate in order to adjust the standard cost of Eligible Inventory to approximate actual cost. Inventory is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.
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Impact of Alignment on S&OP to Inventory Turns Many might look at this analysis and ask, “Why does it matter?” In our cross-survey analysis, we find that that there is a correlation between S&OP maturity and balance, and inventory turns. When the minimum threshold is reached, a bonus is paid equal to 50% of the Net Inventory Turns bonus target. Inland Clearance Depot/Container Freight StNumber Area m2Perimeter Fenced Manned entry/exit CCTV24hr occupation/ securityiv). Inventory Turns is annual sales valued at cost divided by average working inventory valued at cost.Īctual Purchase PriceX 100 = PPV FigureIMI Precision Standard-Average Cost7d: Supplier Inventory Management (Turns) Measurement Inventory Turns Calculation:IMI Precision monitors inventory levels and calculates an annualized monthly and rolling 6-month inventory turns figure using the following method. Thereafter, the Parties shall mutually agree in writing to prepayment against Total Inventory and/or to those contract amendments and/or modifications required to meet the agreed Inventory Turns in the most recent calendar quarter as well as the next calendar quarter. Such contract amendments and/or modifications may include adjustments to Product pricing, materials inventory handling, buffer, flexibility, availability, and other provision modification(s) or any combination thereof designed to meet Inventory Turns.
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Inventory Turnover: See Inventory Turns Inventory Velocity: The speed with which inventory moves through a defined cycle (i.e., from receiving to shipping). Inventory Turns: The cost of goods sold divided by the average level of inventory on hand. Examples of Inventory Turns in a sentenceįocus finance/accounting knowledge is essential with focus on items like Internal Rate of Return(IRR), ROI, Breakeven Analysis, COGs Calculations, Inventory Turns, etc.