Your SlideShare is downloading. ×
Inventory management terms
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Inventory management terms

2,551

Published on

Glossary of Inventory Management Terms

Glossary of Inventory Management Terms

Published in: Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,551
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
163
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Glossary of Inventory Management Terms Return on Investment or ROI = what you are getting back for what you have invested in your inventory – your profit. Gross Margin Return on Investment or GMROI = the gross margin (or profit) you make on sales in the section against your inventory value in that section for unit of time – usually one month. COGS = Cost of Goods Sold = Beginning Inventory + Purchases - End Inventory Gross Margin %, Gross Profit % and Discount % are equivalent. If you buy some soapstone boxes at 45% discount, your gross margin is 45% of your sales. Avg. Inventory = Average Inventory = (Beginning Inventory + Ending Inventory) / 2 Inventory turns = The cost of goods for a period divided by the average inventory value for that period. $ Retail = $ Cost / (100% - markup %) $ Markdown = Original retail price - lower retail price Gross Margin = Sales - cost of goods sold Margin % = ($ Retail - $ Cost) / $ Retail Markdown % = $ Markdown / $ Net Sales Markup = The difference between the cost of an item and its selling price. Markup cancellation = Reduction from original markup % Planned Stock = Planned monthly sales x stock sales ratio Sell through % = Units sold / (units sold + on hand inventory) BOM = Beginning of Month EOM = End of Month Stock Sales Ratio = B.O.M. $ Stock / Sales for period Shrinkage = Difference between book and physical inventory Inventory Turnover = Turnover is the number of times you sell your average investment in inventory each year. Turnover = net sales for period / average stock for period Breakeven = Fixed Costs / (Revenue – Variable Costs) Weeks of Stock = Inventory divided by average weekly sales for a given period of time.

×