If a supplier's terms are thirty days net, what turnover rate would be best?

A turnover rate of less than thirty days is optimal when a supplier's terms are thirty days net. This is because a quicker turnover rate ensures that inventory is turning over more frequently than the time frame given for payment. By selling and restocking inventory within a shorter period, the pharmacy can sustain a healthy cash flow, avoid stockouts, and capitalize on new stock as it becomes available.

Maintaining a turnover of less than thirty days means that the pharmacy is efficiently managing its inventory and can take advantage of supplier terms without facing penalties or negative cash flow issues. This level of turnover helps ensure that the pharmacy can repay suppliers on time, maintaining good business relationships and potentially keeping access to favorable terms in the future.

In contrast, a turnover rate equal to or greater than thirty days might result in increased carrying costs and potential cash flow problems, especially if the pharmacy is unable to sell inventory quickly enough to meet its financial obligations.