What is turn and earn in supply chain?
Understand the Problem
The question is asking for the definition of "turn and earn" within the context of supply chain management. This likely refers to a strategy or metric related to inventory turnover and profitability.
Answer
Turn and Earn balances inventory turnover and profits in supply chain management, often measured using the Turn/Earn Index (TEI).
In supply chain, Turn and Earn is a strategy that balances inventory turnover and profits. The Turn/Earn Index (TEI) evaluates gross margin and turnover, and can be calculated by multiplying inventory turnover by gross profit percentage.
Answer for screen readers
In supply chain, Turn and Earn is a strategy that balances inventory turnover and profits. The Turn/Earn Index (TEI) evaluates gross margin and turnover, and can be calculated by multiplying inventory turnover by gross profit percentage.
More Information
Turn-and-earn can be used to mitigate variability in the supply chain. It can also be used to help the manufacturer, the retailer and increase total supply chain.
Tips
It is important to consider both inventory turnover and profit margins when trying to optimize supply chain performance, and not focus on one over the other.
Sources
- The Trick to Turn-and-Earn - Kellogg Insight - insight.kellogg.northwestern.edu
- Supply Chain KPIs: Which Ones To Improve & Measure - Slimstock - slimstock.com
- Display Descriptive Statistics for Visualize Turn-earn Index - Minitab - support.minitab.com
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