Merchandise planning at the most basic level is about
- anticipating customer demand, then
- planning your inventory needs to meet that demand while
- satisfying the company’s financial objectives – to maximize profit.
In this video training mini-series, we continue the topic of inventory planning to cover some of the commonly used performance metrics used in merchandise planning.
Retail Sales Performance Metrics
- Stock to sales ratios and formulas
- Sell thru percentage and formulas
- Best Practices examples
In addition to the sales performance metrics discussed in the last video, several inventory performance metrics are also used in MFP. Let’s have a look.
Inventory KPI Metrics
- What are Weeks of supply and weeks of supply Formula
- What is Inventory turn and Inventory turn Formula
Now that you understand the basics of how to plan for customer demand – sales planning, and how to plan your inventory to meet that demand, Let’s discuss margin planning.