Certified Maintenance & Reliability Professional (CMRP) Practice Exam

What should the inventory turnover ratio be for a maintenance, repair, and operations (MRO) store?

1. Greater than 5

2. Exactly 2

3. Less than 2

4. Between 2 and 3

The correct answer is: Less than 2

The inventory turnover ratio is a key performance indicator used to assess how efficiently a company manages its inventory. For a maintenance, repair, and operations (MRO) store, an inventory turnover ratio of less than 2 indicates that the store is maintaining a stock level that allows for quick replenishment while addressing the variability and unpredictability of maintenance needs. In MRO contexts, parts and supplies might not sell as quickly as in other retail operations due to their specific and often unpredictable usage. A lower turnover ratio signifies that the store is likely keeping a sufficient buffer stock to meet immediate operational needs, which can be crucial in maintenance settings where delays can lead to increased downtime. While a higher turnover ratio can reflect good performance in many retail operations, MRO stores face unique challenges that often necessitate maintaining a more diverse inventory that caters to varying maintenance activities, resulting in less frequent turnover. A balance between having adequate inventory levels and achieving efficiency is essential, and thus a ratio under 2 can be appropriate in this context.