Question

Which of the following metrics can be used in evaluating SKU inventory performance?

a) Customer satisfaction rating
b) Return on investment (ROI)
c) Inventory turnover ratio
d) Employee productivity

Answer 1

The inventory turnover rate is the metric used to evaluate SKU inventory performance.

Step-by-step explanation:

The metric that can be used in evaluating SKU (Stock Keeping Unit) inventory performance is the Inventory turnover rate.

The inventory turnover rate is a financial ratio used to measure how quickly a company sells its inventory over a specific period. It is calculated by dividing the cost of goods sold by the average inventory value during that period.

A high inventory turnover rate indicates that a company is selling its inventory quickly, which is generally a positive indicator of inventory performance.