NUMBER OF DAYS OF INVENTORY ON HAND
\nˈʌmbəɹ ɒv dˈe͡ɪz ɒv ˈɪnvəntɹˌi ˌɒn hˈand], \nˈʌmbəɹ ɒv dˈeɪz ɒv ˈɪnvəntɹˌi ˌɒn hˈand], \n_ˈʌ_m_b_ə_ɹ ɒ_v d_ˈeɪ_z ɒ_v ˈɪ_n_v_ə_n_t_ɹ_ˌi_ ˌɒ_n h_ˈa_n_d]\
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The average number of days that an item spends as a part of an inventory, expressed as a ratio. It is used to determine the quality of inventory control and thus is a good measure in determining the company's operating cycle. It is the product of the number of days in a year and the number of units in the inventory. The yearly usage is expressed in number of units.
By Henry Campbell Black
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