Q3. Explain the following Channel Inventory evaluation measures with examples and solve the associated numerical:

1. SKU Range in a channel
2. Total Inventory Value and Volume in a channel
3. Stock Turnover Ratio (%)

1. Inventory Turns
   1. Numerical 5: An apparel retailer holds $600,000 worth of socks in inventory January 1, and $800,000 the following December 31. Revenues generated by sock sales totalled $3.5 million during the year. Calculate inventory turns during the year.
2. Inventory Days
   1. Numerical 6: An apparel retailer holds $600,000 worth of socks in inventory January 1, and $800,000 the following December 31. Revenues generated by sock sales totalled $3.5 million during the year. Calculate inventory days during the year.
3. Out of Stock measurement (OOS)
   1. Numerical 7: The marketers at Madres Tortillas want to know their OOS (based on ND) given the following data. Calculate their OOS assuming Madres Tortillas is listed in 3 retail outlets in a market of total 4 outlets.

Outlet	All Sales	Tortilla Sales	Madres Tortilla Listed/Stocked	Padres Tortilla Listed/Stocked
Store 1	$100,000	$1,000	Yes/Yes	Yes/No
Store 2	$75,000	$500	Yes/No	Yes/Yes
Store 3	$50,000	$300	Yes/Yes	No/No
Store 4	$40,000	$400	No/No	Yes/No

2. Numerical 8: Look at the following data and answer the questions that follow:

Universe of category stores = 500; Numeric Distribution = 80%

Total Brand sales in a given period = $100,000

OOS Distribution = 10%

Number of stores handling Brand = ??

Average sales per store = ?

Number of stores OOS = ?

Therefore, what is the cost of OOS in lost sales = ??

Assume that the Probability of OOS at any store, at any point in time (during the period under investigation) is 10% and if the consumer doesnt find the product then she will switch the Brand and not the retail store.