Abstract
Inventory management is vital in supply chain performance of a firm. The inventory turnover
ratio measures the number of times a company sells its inventory during the year. A high inventory
turnover ratio indicated how best the firm is operating economically in selling its products. Inventory
turnover is a measure of management's ability to use resources effectively and efficiently. Precise
control and safeguarding of inventory is an essential task for a successful and well organized
company. Business requires timely and accurate information on inventory location, movement and
valuation. ERP systems provide data pertaining to receipt of goods, movement within and between
locations, the sale, removal or disposition of goods, lot and serial tracking, precise valuation and
status of goods remaining in inventory at any point of time. As a part of its continuous improvement
program (CIP), firms can focus on inventory turn ratio as a means of improving its supply chain
performance. In this context, present research is aimed to measure effect of inventory turn over ratio
on supply chain performance in a leading battery manufacturing organization in India.
Keywords: Inventory turn over ratio, supply chain performance, Radio Frequency Identification