What term is used to express the rate at which inventory is used, usually in number of days?

The term used to express the rate at which inventory is utilized, especially quantified in days, is turnover. Inventory turnover specifically refers to how many times a company sells and replaces its stock of goods over a certain period, typically a year. Calculating turnover in terms of days helps businesses understand how quickly they move their inventory, which can be important for maintaining optimal stock levels and cash flow management.

This metric allows retailers to evaluate their purchasing strategy and inventory management effectiveness. High turnover indicates efficient use of inventory and strong sales, while low turnover suggests overstocking or declining demand. Understanding turnover aids in forecasting inventory needs and can also influence marketing and sales strategies.

Other terms such as depreciation refer to the decrease in value of assets over time, and utilization generally pertains to making the most effective use of resources rather than inventory specifically. The concept of the inventory cycle doesn't directly translate to measuring the rate of inventory usage over time. Thus, turnover is the most accurate term in this context.