Supply Chain and Inventory Management – Inventory Turnover Analyzer

 

Notes:

• Problem Solved: Calculates inventory turnover ratio to evaluate how efficiently inventory is managed.

• Benefits: Helps identify slow-moving products, reduce holding costs, and improve working capital.

• Adoption: Use this script in monthly financial reviews or ERP integration.

Python Code:

import pandas as pd

class TurnoverAnalyzer:

    def __init__(self, inventory_df):

        self.df = pd.DataFrame(inventory_df)

    def calculate_turnover(self):

        self.df['TurnoverRatio'] = self.df['COGS'] / self.df['AverageInventory']

        self.df['DaysInInventory'] = 365 / self.df['TurnoverRatio']

        return self.df[['SKU', 'TurnoverRatio', 'DaysInInventory']]

# Sample inventory data

data = [

    {'SKU': 'Item001', 'COGS': 50000, 'AverageInventory': 10000},

    {'SKU': 'Item002', 'COGS': 30000, 'AverageInventory': 5000},

    {'SKU': 'Item003', 'COGS': 80000, 'AverageInventory': 16000},

]

analyzer = TurnoverAnalyzer(data)

result = analyzer.calculate_turnover()

print(result)