Fundamentals of Merchandise Planning 7: Performance Metrics

  • Performance metrics
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Merchandise planning at the most basic level is about

  1. anticipating customer demand, then
  2. planning your inventory needs to meet that demand while
  3. 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

Learn about stock-to-sales ratios, sell-through %, etc.

In addition to the sales performance metrics discussed in the last video, a number of inventory performance metrics are also used in MFP. Let’s have a look.

Inventory Performance Metrics

What is weeks of supply? or Inventory turn?

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.

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