Inventory Management: Stay On Top of the Metrics
Constantly look to improve merchandise profitability
By
George Mollo
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Add Space Performance
Look at adding the space performance factor in Figure 2 (see top pg. 48). Here, you see accessories, due to higher density, have a reasonable amount of space.
So far, I’ve only looked at demand ratios, which can be misleading on their own. Adding a few additional pieces of information gives a better “directional” picture of profitability.
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