Final answer:
C) Stockturn rate measures how quickly inventory sells and is an indication of the health of a retailer. (Option is C).
Step-by-step explanation:
The stockturn rate, also known as inventory turnover, is a financial metric that calculates the number of times a company's inventory is sold and replaced over a specific period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory during the same period.
A higher stockturn rate generally indicates that a retailer is efficiently managing its inventory by selling products quickly and restocking at an appropriate pace.
A healthy stockturn rate is crucial for retailers as it helps prevent overstocking, reduces holding costs, and ensures that products are current and in demand.
Market share (Option A) measures the portion of total sales in an industry that is captured by a company but does not directly indicate inventory health.
Cluster analysis (Option B), return on investment (Option D), and supplier scorecard (Option E) are not direct measures of how quickly inventory sells or the health of a retailer.