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inventory turnover

 is used as a measure of the number of times 

inventory is sold or used in a time period such as a year. It is calculated as the cost of goods sold 

divided by the average inventory. A low turnover rate may indicate overstocking or difficulty 

in selling products at an acceptable rate. A high turnover rate may suggest inadequate inven‑

tory levels, which may lead to a loss in business as the inventory is too low and sales are missed.

Using digital business technology to support SCM can help to avoid some problems 

that can occur in a supply chain (Table 6.1). This introduces many of the key concepts of 

 technology‑  enabled  supply  chain  management.