https://orwiki.org/index.php?action=history&feed=atom&title=m%3AAE122 2026-04-29T03:49:54Z Revision history for this page on the wiki MediaWiki 1.28.0 https://orwiki.org/index.php?title=m:AE122&diff=12050&oldid=prev 2017-06-10T13:48:35Z

<p>1 revision imported</p> <p><b>New page</b></p><div>{{this}} measures the average number of days of inventory the company holds on its books that have been classified as [[Link::t:WIP|Work-in-Process]] inventory.<br /> ===Calculation===<br /> {{math|{{this}}|{{frac|Work-in-Process Inventory|Cost of Goods Sold|365 days}}}}<br /> where:<br /> * Work-in-Process Inventory = Average Work-in-Process Inventory during the year (the average of beginning and year-end WIP inventories). Work-in-Process inventory includes [[m:AE1221|Unrestricted]], [[m:AE1222|Restricted]] and [[m:AE1223|Blocked]] [[t:WIP|Work-in-Process]] inventories.<br /> * Cost of Goods Sold = Annual Cost of Goods Sold<br /> Unit of measure: days (Calendar days)<br /> <br /> Alternative names include: Inventory WIP Days of Supply. See also: WIP 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 WIP Inventory<br /> |parent=m:AE12<br /> |sort=51220<br /> |level=3<br /> }}</div>

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