Optimal inventory levels act as a range for how many units you should hold at any given time. Here’s how to calculate them for your retail business.
Maximum inventory levels is the limit you set for how much inventory you have available at any given period. Maximum inventory amounts depend on your available capital, storage space, shelf-life of materials, SKU count, and average inventory turnover rate. Having a surplus of inventory can lead...
Safety stock is like an emergency fund. If you sell more of a given product than you expected, your supply chain is disrupted, or your merchandise gets damaged, safety stock allows you to keep selling that product regardless. Read this article to learn m
See how your money can grow with our investment calculator. What is inflation? Inflation measures the average change in prices for goods and services over time. In other words, inflation represents an average increase in prices. Deflation is the opposite — it represents an average decrease in ...
In simple IRR calculations, it’s not mandatory to enter a Guess argument. When using a Guess value, the IRR formula will show a value closest to the Guess argument. If it shows #NUM! Error, change the Guess argument value. What Are the Limitations of IRR in Excel?
Learn the advantages of having buffer inventory on hand, how to calculate, and how a 3PL like ShipBob can help simplify inventory management.
So just focus on being below the maximum ratios and you’ll have a good shot at getting approved for a mortgage, assuming you meet the other qualifying criteria for things like credit history, assets, and so forth. As noted, it’s nice to have a buffer in case mortgage rates increase ...
You can see from the table that the maximum sales you had in one day was 40 in June. (1,200 / 30 days).Out of the 10 deliveries you received for the year, the average lead time was 35 days with a max lead time of 40 days. ...
When looking at a demand-supply graph, the demand curve is always going to be sloping downward due to the law of diminished marginal utility. We can measure consumer surplus with the following basic formula: Consumer surplus = Maximum price willing to spend – Actual price In our earlier exa...
The hazard rate is a simple yet effective way to determine the likelihood that an item will survive to a given time point. That might not sound particularly useful or groundbreaking. However, in certain industries, the concept is used to make key decisions....