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Compute inventory turns and days on hand against last year
- For FP&A and financial analysts
- You practice Catching mistakes and made-up facts
- Time about 5 minutes
- Level Intermediate
About this exercise
You're reporting inventory efficiency to the COO. Write a prompt for plain text with lines starting "Average inventory:", "Turns:", "Days on hand:" and "Versus last year:". Average inventory = (beginning + ending) / 2; turns = COGS / average inventory; days on hand = 360 / turns. Show the math. The last line gives the change in turns and in days, with an up or down. Under 90 words.
Common mistakes when you ask AI for this
- Using the June peak. The AI averages the $900,000 into the base. Try: Say: "Average = (beginning + ending) / 2 only."
- Using 365 days. The AI computes 91 days. Try: Add: "Use a 360-day year."
- Missing the comparison. The AI stops at the current-year numbers. Try: Add: "A last line giving the change in turns and days, up or down."
- Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
- Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each part short.
What a strong prompt includes
- Names the four lines
- Gives the definitions
- Excludes the peak
- Asks for the math
- Caps length
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