How do you calculate the saving from a reduction in inventory?

Determined the RRT (Reliable Replenishment Time) which was basically, production cycle time + transit + order entry + some kind of pad (if it was shipping rail we'd put in a 7_10 day pad) by truck...

This is a very simple calculation. Days to Sell Inventory (or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) /...

(E1 - E2)/E1 where E1 is the original expense and E2 is the new, lower expense.

Inventory turnover = cogs / avg inventory

Taxes - Government Spending