The days sales in inventory is a primary component of a company's ability to manage its inventory. Related: Q&A: Is Inventory an Asset? Why is a DSI important? A company's DSI will fluctuate depending on several factors so the metric results should be viewed as an average rather than a concrete ratio. The DSI, also known as the “average age of inventory,” also looks at how long the company’s current inventory will last. The days sales in inventory is a formula that calculates the average time it takes a business to turn its inventory into sales. Days sales in inventory formula how to#In this article, we will discuss the importance of days sales in inventories, how to calculate them and provide examples of using DSI in a business. As a business owner or a finance professional, knowing how to calculate DSI and use this information to support the organization's sales and growth is imperative. Those are technological developments and capabilities, environmental issues, global business competition, and the different point of view related to choice for responsive or efficient in business strategy.The days sales in inventory (DSI) is a metric that helps companies track inventory and monitor sales. Despite the potential usefulness, there appear constraints of combining supply chain management system with MFCA approach to be addressed with further study. There is potential benefit between joint adoption of MFCA approach and supply chain management as an integrated system. With MFCA and supply chain management combined, it can be seen that the implementation can potentially be used as strategic competitive tools for companies to solve logistical problems in order to win global competition. A descriptive study for reducing material losses described in this paper was employed to inspect whether MFCA approach would achieve in material losses reduction among multiple suppliers through efforts by the buyer. This paper examines the potential of adopting material flow cost accounting (MFCA) to help generate innovation in supply chain management while playing its essential role. From a philosophy of knowledge perspective, it is suggested that SCM be framed as a Lakatosian Research Program, for this has the best potential to assist in the development of SCM body of knowledge in a sustainable way into the future. – This review identifies various conceptual and research methodological characteristics of SCM. – A number of key findings emerged: the field is a relatively “new” one several disciplines claim ownership of the field consensus is lacking on the definition of the term contextual focus is mostly on the manufacturing industry predominantly “process” conceptual framing prevails research methods employed are mostly analytical conceptual, empirical surveys or case studies the positivist research paradigmatic stance is prevalent and theories related to transaction cost economics and competitive advantage dominate. – A total of 100 randomly selected refereed journal articles were systematically analyzed. This paper seeks to clarify aspects of this emerging perspective. While some effort towards producing a broader organizational perspective has been made, nonetheless, SCM continues to be largely eclectic with little consensus on its conceptualization and research methodological bases. – The field of supply chain management (SCM) has historically been informed by knowledge from narrow functional areas. Hence, need for effective cash management for better performance. It was also discovered that mere availability of cash (liquidity) without proper management does not necessarily translate into favorable performance for manufacturing companies. The results of the study suggested that a significant relationship exists between cash management on performance of manufacturing companies in Nigeria. Two different hypotheses were formulated and tested using descriptive statistics and correlation coefficients techniques respectively in order to establish whether there is a significant relationship between cash management, performance and liquidity. For clear analysis, the study centres on two broad variables the dependent variable which is performance and the independent variable which is Cash management. The researcher used both secondary and primary data for data collection. This study examined empirically the impact of cash management on the performance of manufacturing companies in Nigeria-A study of Cadbury Nigeria Plc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |