High turnover inventory refers to items that sell quickly and are replenished frequently within a given period. These products typically generate a significant portion of a company’s revenue and are central to demand-driven inventory strategies. Managing high turnover inventory effectively is critical to maintaining product availability, customer satisfaction, and cash flow. It requires precise forecasting, responsive replenishment, and often, minimal safety stock. High turnover is a positive indicator of strong product-market fit and efficient inventory use, but it also demands robust supply chain agility to avoid stockouts.
