Calculating Inventory Turnover Rate for Dupbuy Purchasing Agency in Spreadsheets and Adjusting Inventory Management Strategies-Koopbuy Spreadsheet-The best spreadsheet

Calculating Inventory Turnover Rate for Dupbuy Purchasing Agency in Spreadsheets and Adjusting Inventory Management Strategies

2025-04-25

Introduction

Inventory turnover rate is a crucial metric for evaluating the efficiency of inventory management in e-commerce businesses like Dupbuy purchasing agency. By analyzing this KPI in spreadsheets, we can make data-driven decisions to optimize procurement, sales, and stock clearance processes.

Calculating Inventory Turnover Rate in Spreadsheets

Formula:

Step-by-Step Implementation:

Create a dedicated spreadsheet with columns for product SKU, name, purchase cost, sales quantity, and inventory levels

Calculate moving average of inventory:=AVERAGE(D2:D30)
Compute COGS:=B2*C2
Determine turnover rate:=G2/F2

Add conditional formatting to highlight products with turnover below the threshold (e.g., orange < 3 turns/year, red < 1)

Data Analysis and Relationship Mapping

Correlation Analysis:

Sales velocity impact:
Procurement frequency:=CORREL(procurement_interval_array,turnover_rate_array)

Apply PivotTables to segment products by category, supplier, and turnover tier

Turnover Range Management Priority Level Typical Action Items

<6 Emergency Stop ordering, launch promotions, consider returns

6–8 Warning Reduce order quantities, bundle with fast-movers

9–12 Balanced Maintain current strategy

>12 Optimize Further Increase safety stock, negotiate bulk discounts

Strategic Adjustments Based on Data Insights

Key Managerial Actions:

Procurement Optimization:

Implement automated reorder formulas based on turnover brackets

Excel formula:=IF(H2<4,"Don't Order",IF(H2<8,"Order 50%",IF(H2<12,"Order 75%","Order 100%")))

Sales Acceleration:

Setup warning alerts when rate drops 20% below category average

Calculate recommended discounts using: =(CategoryAvgTurnover - ProductTurnover)*(ProductCost*0.2)

Non-Performing Stock Clearance:

Create dynamic "Liquidation List" sorted by ascending turnover & CUMMATIVE <0

Apply Weighted Scoring for prioritization: =(Days_in_Stock*0.4)+(Purchase_Cost*0.3)+(Turnover_Gap*0.3)
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Turnover Range	Management Priority Level	Typical Action Items
<6	Emergency	Stop ordering, launch promotions, consider returns
6–8	Warning	Reduce order quantities, bundle with fast-movers
9–12	Balanced	Maintain current strategy
>12	Optimize Further	Increase safety stock, negotiate bulk discounts