The efficiency of an inventory system is often measured by the turnover ratio. The turnover ratio (TR) is defined by                   a. Does a high turnover ratio indicate an efficient inventory...

The efficiency of an inventory system is often measured by the turnover ratio. The turnover ratio (TR) is defined by




a. Does a high turnover ratio indicate an efficient inventory system?


b. If the EOQ model is being used, determine TR in terms of K, D, h, and Q.

c. Suppose that D increases. Show that TR will also increase. Does this make intuitive sense?