What does "stock turn" indicate in supply chain management?

Stock turn is a key performance indicator in supply chain management that measures how quickly a company sells and replaces its inventory over a specific period. The primary purpose of tracking stock turn is to assess the efficiency of inventory management and sales performance. A high stock turn rate indicates that inventory is being sold rapidly and effectively replenished, reflecting strong demand and effective inventory control. This metric helps organizations optimize their inventory levels, reduce holding costs, and improve cash flow, ultimately supporting overall operational efficiency and responsiveness to market demand.

In contrast, the other options do not accurately define stock turn. The first option refers to how frequently inventory is stored, which does not capture the essence of selling or replacing. The third option discusses the total value of inventory, which relates to valuation rather than the rate at which it moves. Lastly, the fourth option about the number of suppliers involved does not reflect inventory movement or turnover. Hence, the correct understanding of stock turn focuses specifically on the rate of sales and replenishment of inventory.