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<p>1 revision imported</p> <p><b>New page</b></p><div>Days of Raw Materials Inventory measures the number of days worth of inventory the company holds on its books that have a [[Link::t:RM|Raw Material]] status.<br /> ===Calculation===<br /> {{math|{{this}}|{{frac|Raw Materials Inventory|Raw Material Purchases|365 days}}}}<br /> where:<br /> * Raw Materials Inventory = Average Raw Materials Inventory (= average of beginning and ending inventories). Raw Materials inventory includes [[m:AE1211|Unrestricted]], [[m:AE1212|Restricted]] and [[m:AE1213|Blocked]] [[t:RM|Raw Material]] inventories.<br /> * Raw Material Purchases = Total annual [[t:RM|Raw Material]] purchases<br /> Unit of measure: days (Calendar days)<br /> <br /> Alternative names include: Inventory Days of Supply Raw Materials. See also: Raw Materials Inventory Turns.<br /> ===Notes===<br /> {{this}} may be calculated using value or volume. Value-based is preferred as [[m:AE|Asset Efficiency]] focuses on the efficient use of capital. Volume-based calculations may overstate the importance of inventories of low-value materials.<br /> [[Category:Metric]]<br /> {{Object<br /> |name=Days of Raw Materials Inventory<br /> |parent=m:AE12<br /> |sort=51210<br /> |level=3<br /> }}</div>

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