Articles by 田中正知

How Much Does 10,000 Yuan of Inventory Lose by Sitting in the Warehouse for One Day?

This article calculates the opportunity cost of holding inventory by converting the question 'How much does 10,000 yuan of inventory lose in one day?' into 'How much should 10,000 yuan of inventory earn in one day?' Using the inventory gross margin ratio, it shows that 10,000 yuan of inventory can earn 137 yuan per day, meaning that leaving it in the warehouse for one day results in a loss of 137 yuan in potential profit. A Toyota case study illustrates the same principle.