How do we get the balance of inventory right in the lean months for our store?
Q: “How do we get the balance of inventory right in the lean months?”
A: Look at your average sales for each quarter, and then let's say there are a hundred thousand dollars each month, so you want to do $300,000 in three months. How much do you have on your floor?
It's better not be more than about $100,000 if you want to get your turns.
You always do your stock balance based on the number of turns per year.
In a year, you want all of your merchandise to generate a minimum of twice.
If it's more than that, that means you're understocked. If it's less than that, it means you’re overstocked."
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