What is food inventory turnover?

Definition

Food inventory turnover is the number of times a retailer has to replace inventory for their products. It's important for retailers to have an adequate food inventory turnover to ensure customer satisfaction at all times. For example, if a retailer is able to produce and sell 50 products each week, they'll need at least 100 new products each month to keep up with supply and demand. This is especially important in their holiday seasons where they may serve close to 1 million customers. If they fail, they'll then have trouble meeting the demands of their customers.