Chapter 9 – Your Investment in Stock Inventory

The topics covered in Chapter 9 include:

  • Set Appropriate Goals for Your Buyers
  • Customer Service Level
  • Customer Satisfaction Analysis
  • Recording Out-of-Stock Situations
  • Analyzing the Customer Service Level and Stockouts
  • Inventory Turnover
  • Turn/Earn Index
  • Gross Margin Return on Investment (GMROI)
  • Applying the Adjusted Margin to Segments of Your Inventory
  • Calculate Your Ideal Inventory Investment
  • Projected Average Quantity of Items with Sporadic Usage
  • Projected Average Quantity of Items with Recurring Usage
  • Maximum Stock Level and JIT Items
  • New Stock Items and Power Buy Allowance
  • The Total Ideal Inventory Investment
  • Potential Inventory Turnover
  • Pruning Your Approved Stock List
  • Excess Quantities of Normal Stock Items
  • Three-way Ranking
  • Day’s Supply of Inventory
  • Does Every Item Have to be Stocked in Every Branch?
  • Buy Direct or Transfer?
  • The Liquidation of Unwanted Inventory
  • Inventory Liquidation is a 12-Month Job
  • Results Take Time