Turnover months is the number of months it will take for a return to be closed from work in process. Calculate the base inventory required for each activity code. Base inventory is the optimal level of work in process necessary to accomplish the Plan. Base inventory variance. The difference between base inventory returns and current work in process returns.
Average return starts.
Average starts needed. Starts needed each remaining month to balance the Plan. Now that the number of returns needed each remaining month to balance the Plan have been determined, by return category and activity code, the Chief, PSP must determine if there is sufficient inventory on hand. Note that the Return Starts Analysis may indicate on a district level that returns are not needed. However, be sure to review the Return Needs Analysis to determine if a particular POD requires inventory.