A smaller warehouse should have higher inventory turns compared to a larger warehouse, assuming consistent demand and sales. Inventory turnover is an efficiency indicator and is expected to be higher in smaller warehouses due to smaller quantities on hand.
As compared to a larger warehouse, a smaller warehouse should have higher inventory turns, all else equal. Inventory turns, or inventory turnover, is a measure of the number of times inventory is sold or used in a time period such as a year. The formula for calculating inventory turnover is cost of goods sold divided by average inventory during the period.
A smaller warehouse typically has less storage space and, therefore, keeps lower levels of inventory on hand. With a smaller volume of inventory, sales can represent a larger fraction of the available goods, potentially leading to more frequent restocking and thus higher turnover rates. This is assuming demand and sales are consistent irrespective of the warehouse size, which could be the case in a retail chain with multiple outlets or an e-commerce business.
all else equal, a smaller warehouse is expected to have higher inventory turnover compared to a larger warehouse because the same level of sales would consume its inventory more quickly due to the smaller quantities on hand. It is a financial efficiency indicator that measures how effectively inventory is managed.