A closely observed statistic by the retailers is Retail stock, along with their investors, lenders, and suppliers. Retailers not only take advantage of stock, but also bear the cost of excess inventory. Investors, lenders, and suppliers interpret this stat for hints of the retailer's health, future sales prospects, and forthcoming prices.
This informative article synthesizes the perspectives of investors, lenders, and suppliers on inventory. Moreover, the article shows that a commonly used metric to identify excess inventory, stock turns, has important limitations that reduce its utility for all these stakeholders. It then presents a new metric, adjusted stock turns, which can be efficiently utilized by all stakeholders to assess whether a retailer is carrying too little or too much stock.
Retail Inventory Managing the Canary in the Coal Mine case study solution
PUBLICATION DATE: February 27, 2014 PRODUCT #: CMR560-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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