Shein is a global leader in fast fashion e-commerce, known for its agile, trend-responsive supply chain that serves millions of customers across the globe. To ensure optimal inventory levels and support quick order fulfilment, Shein regularly calculates its Inventory Turnover Ratio (ITR). This helps assess how efficiently inventory is being managed across its global network of suppliers, warehouses, and distribution centres.

As part of its ongoing operational and financial analysis, Shein’s supply chain management team has collected monthly data on ending inventory levels and the cost of goods sold (COGS) over the past year. The team now needs to calculate the ITR to evaluate how effectively inventory is being utilised and to identify opportunities for improvement in inventory management.

You are part of Shein’s supply chain management team. You have been given the following instructions: