Target Inventory Investment Solution

STEP 0: Pre-Calculation Summary
Formula Used
Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover
TI Invt = COGS/TITurnover
This formula uses 3 Variables
Variables Used
Target Inventory Investment - Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year.
Projected Annual Cost of Goods Sold from Stock Sales - Projected Annual Cost of Goods Sold from Stock Sales is a realistic projection of what your sales from warehouse stock will be (at cost) during the next 12 months.
Target Inventory Turnover - Target inventory turnover is the theoretical measure of how often, at the current rate of sales, you sell your entire inventory in one year.
STEP 1: Convert Input(s) to Base Unit
Projected Annual Cost of Goods Sold from Stock Sales: 200000 --> No Conversion Required
Target Inventory Turnover: 20 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
TI Invt = COGS/TITurnover --> 200000/20
Evaluating ... ...
TI Invt = 10000
STEP 3: Convert Result to Output's Unit
10000 --> No Conversion Required
FINAL ANSWER
10000 <-- Target Inventory Investment
(Calculation completed in 00.004 seconds)

Credits

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Bhilai Institute of Technology (BIT), Raipur
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Target Inventory Investment Formula

Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover
TI Invt = COGS/TITurnover

How to Calculate Target Inventory Investment?

Target Inventory Investment calculator uses Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover to calculate the Target Inventory Investment, Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year. Target Inventory Investment is denoted by TI Invt symbol.

How to calculate Target Inventory Investment using this online calculator? To use this online calculator for Target Inventory Investment, enter Projected Annual Cost of Goods Sold from Stock Sales (COGS) & Target Inventory Turnover (TITurnover) and hit the calculate button. Here is how the Target Inventory Investment calculation can be explained with given input values -> 10000 = 200000/20.

FAQ

What is Target Inventory Investment?
Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year and is represented as TI Invt = COGS/TITurnover or Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover. Projected Annual Cost of Goods Sold from Stock Sales is a realistic projection of what your sales from warehouse stock will be (at cost) during the next 12 months & Target inventory turnover is the theoretical measure of how often, at the current rate of sales, you sell your entire inventory in one year.
How to calculate Target Inventory Investment?
Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year is calculated using Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover. To calculate Target Inventory Investment, you need Projected Annual Cost of Goods Sold from Stock Sales (COGS) & Target Inventory Turnover (TITurnover). With our tool, you need to enter the respective value for Projected Annual Cost of Goods Sold from Stock Sales & Target Inventory Turnover and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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