Inventory Turns Analysis

Inventory Turns Analysis uses your product consumption and time-weighted inventory data to help you evaluate stocking levels. It compares each product variant’s current Model Quantity and Order Point with recommended values based on your inventory-turn goals.

You can review the calculations behind each recommendation, adjust individual Model Quantity and Order Point values, and save selected recommendations directly to Stock Levels.

Inventory Turns Analysis supports Retail, Shop Supply, and Miscellaneous Supply inventory.

 

More on Meevo's Inventory Wizards

Meevo’s inventory analysis tools use historical product activity within your business to provide stocking recommendations that will help your business make more informed purchasing decisions.

  • Inventory Turns Analysis, covered in this article, evaluates stocking levels against your business’s inventory-turn goals. It helps you understand how efficiently inventory is moving, and what your stock levels should be to meet your turn goals.
  • Model Quantity Analysis uses recent demand and replenishment practices to recommend changes that authorized users can review, adjust, and apply directly to Meevo. 

 

What are "inventory turns?"

Inventory turns measure how quickly a product is sold or consumed and replenished over a given period:

  • Higher turns indicate that inventory is moving quickly.
  • Lower turns indicate that inventory is remaining in stock longer.

For example, if your business maintains an average of 10 units of a product and sells or consumes 40 units during the year, the product’s inventory turn rate would be approximately 4. This means your business effectively cycled through its average inventory four times that year.

The wizard uses this information to recommend values for:

  • Model Quantity: The target quantity of a product to keep in stock.
  • Order Point: The inventory level at which the product should be reordered.

 

Enabling Inventory Turns Analysis

To enable the wizard, go to Meevo > Business Preferences > System Settings and toggle on the option Enable Inventory Turns Analysis wizard for time-weighted inventory turns and order point recommendations.

 

Securing access to Inventory Turns Analysis

Access to Inventory Turns Analysis is controlled by two security keys:

  • Inventory > Inventory Turns Analysis: Determines the user's ability to view analysis results.
  • Inventory > Inventory Turns Analysis > Save Turns Settings: Controls the user's ability to save and update Stock Levels based on recommendations.

 

Running Inventory Turns Analysis

From the Main Menu, go to Inventory > Inventory Turns Analysis.

  1. Begin by filtering the products you want to analyze by inventory type, product category, manufacturer, distributor, and active or discontinued status.
  2. Configure the analysis settings. The default settings are a 12-month analysis window, 12 desired turns per year, and a 7-day lead time.
    • Analysis Window: Select 12, 18, or 24 months of consumption history to build recommendations from.
    • Desired Turns/Yr: Enter the inventory-turn goal to apply when generating the initial recommendations.
    • Lead Time: Enter the number of days it typically takes to receive additional inventory.
  3. Select Analyze Turns. 

 

Reviewing the analysis summary

After the analysis runs, the Filters section collapses and summary tiles provide an overview of the results:

  • Analyzed: The total number of products included and the selected analysis window.
  • Turning Slow: Products turning below the desired turns-per-year target. These products may be candidates for lower stocking levels.
  • At / Above Target: Products meeting or exceeding the desired turns-per-year target.
  • Insufficient Data: Products without enough information to calculate a reliable recommendation, such as products with no on-hand inventory or observable consumption.

The results grid can be filtered by High, Medium, Low, or Insufficient Data confidence. You can also search by SKU, product name, or barcode within the grid.

 

Reviewing product recommendations

The results grid displays the following information for each product variant. Directional indicators show whether the recommended MQ and OP represent an increase, decrease, or no change from the current values. 

  • Avg On-Hand: The product’s time-weighted average on-hand quantity during the analysis window.
  • Consumed/Yr: The product’s consumption annualized to represent a full year.
  • Actual Turns: The product’s calculated annual inventory-turn rate and the confidence level of the calculation.
  • Desired Turns/Yr: The inventory-turn goal used to calculate the product’s recommendations.
  • Model Quantity: The current MQ and the recommended MQ.
  • Order Point: The current OP and the recommended OP.

 

Adjusting a product recommendation

The Desired Turns/Yr setting in the Filters section establishes the initial target used for all products when you run the analysis. After the results appear, you can customize an individual product’s recommendation by:

  • Changing Desired Turns/Yr for that product
  • Overriding the recommended Model Quantity
  • Overriding the recommended Order Point

When you change a product’s Desired Turns/Yr, its recommended Model Quantity and Order Point recalculate immediately. You can then accept those recalculated values or manually override the Model Quantity or Order Point. You do not need to run the full analysis again.

When you make a product-level adjustment, Meevo identifies the product as having an override. You can use the Overrides filter to display overridden products. To restore the original recommendation, select the revert icon beside the overridden value. To clear all overrides, select Reset all in the Save bar.

A product-level adjustment affects only that product’s pending update and does not require you to rerun the analysis.

Note: These adjustments do not update Stock Levels automatically. The product must be checked, and you must select Save Stocking Levels to apply the values.

 

Changing the analysis settings

The Analysis Window, Desired Turns/Yr, and Lead Time settings in the Filters section apply to all products included in the analysis.

If you change any of these settings after generating results, Meevo indicates that the existing results are outdated. Select Analyze Turns again to generate new recommendations using the updated settings.

This differs from adjusting values within a product row:

  • Changing a setting in Filters affects the full analysis and requires you to rerun it.
  • Changing Desired Turns/Yr, Model Quantity, or Order Point within a product row affects only that product’s pending update and does not require you to rerun the analysis.

 

Viewing details about a recommendation

Select the information (i) icon at the end of a product row to open its details panel. The panel provides additional information about how Meevo arrived at the recommendation. Use these details and the confidence rating to evaluate the recommendation before updating the product’s stocking levels:

  • The calculations behind the recommended MQ and OP
  • Inventory-turn and consumption statistics
  • Safety stock and expected demand during lead time
  • Data-quality information
  • Monthly consumption history for up to 24 months

 

Updating Stock Levels

After reviewing the analysis and making any product-level adjustments, you can apply the recommended stocking levels:

  1. Check each product whose recommended Model Quantity and Order Point you want to apply. You can use the checkbox in the column header to select or clear all products currently displayed.
  2. Review the number of selected products in the Save bar at the bottom of the wizard.
  3. Select Save Stocking Levels. Meevo updates the values in Stock Levels for the checked products. Unchecked products are not updated.