Question

what does it mean to turnover inventory in a healthcare organization

Answer 1

In healthcare sector inventory means specialized medical equipment, materials and medications etc. Effective inventory management is vital of a healthcare organization for its efficient functioning. There are certain essential items that should always be on hand in its operating room.

Inventory turnover means in a healthcare organization that how many times an organization has sold or replaced its inventory over a period of time in comparison of it cost of Goods Sold (COGS). Where

Inventory turnover ratio = Cost of Goods Sold (COGS) over a period of time / Average Inventory