Inventory Management: Stay On Top of the Metrics

Now look at the Home category in a slightly different light.

Although the demand and space ratios were acceptable due to the lower product margin (48.9 percent), the remaining margin is only 19.8
percent.

Use industry averages of nonmerchandise variable operating expense, or NMVOE, which consists of:
• order taking,
• picking,
• packing,
• shipping costs, etc.