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Parts : Service

Department:

Overall Dealership

Parts : Service

:

Calculation

Value of parts inventory divided by service department revenue.

DESCRIPTION

The ratio of parts inventory to service department revenue.

Purpose

To evaluate the relationship between parts inventory and service department operations.

Interpretation

Did you get it right

Optimal:
A balanced ratio indicates efficient inventory management and service operations. [What does BALANCED mean?]
Alert:
A high ratio may suggest excess parts inventory or underperforming service department.
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06/15/2024 05:03:34 am