Rule Of Thumb – Frozen Capital In Parts
In the last post we talked about how Parts over 9 Months old are only 50% of the Idle Parts Inventory dollar value. The other 50% is in Special Order Parts that are not yet aged over 9 Months, that most don’t know about. A rule of thumb is - whatever parts you have over 9 Months old, double it. This is typically what we see as a total Idle Parts Inventory amount in Parts, without doing any analytics, or understanding Parts Reports.
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