Inventory Turnover Model

Inventory Turnover Model

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Inventory Turnover

In business and finance, ITO is one of the parameters to represent the selling of inventory in or usage of inventory in a specific time like one year. The inventory turnover equation is equal to the products price divided by average inventory.

Model

            An ITO model for MELROSE is as follows

One-dimensional Ito equation

 dy = a(y) dt + dW (t) ----------equation (1)