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Stockturn rate ( also called inventory tumover rate ) is a significant concern for many retailers. While a retailer needs to carry enough inventory to
Stockturn rate also called inventory tumover rate is a significant concern for many retailers. While a retailer needs to carry enough inventory to satisfy demand, carrying too much inventory ties up funds that could be invested elsewhere and may indicate overstocking or deficiencies in the product line or marketing efforts. In general, higher stockturn rates indicate higher levels of management efficiency and profitability.
A large sporting goods retailer is concerned about low inventory turnover at three of its stores in Year At the beginning of Year executives met with the management teams for all three stores to discuss strategies for increasing inventory turnover and promised a cash bonus for every member of the team if their store could double its stockturn rate by the end of Year To discourage unethical behavior like selling off inventory below cost to quickly reduce average inventory levels the bonus was contingent on the store meeting or exceeding its Year profitability goals.
The table provides the cost of goods sold COGS and average inventory at cost for Year and Year All numbers are in millions If all three stores met or exceeded the profitability goals for Year which managers earned the bonus?
Calculate the stockturn rates for Year and Year and the stockturn goal for each store and fill in the following table.
Round to one decimal place.
tabletableYear StockturnRatetableYear StockturnRatetableYear StockturnGoalStore AStockturn rate also called inventory turnover rate is a significant concern for many retailers. While a retailer needs to carry enough inventory to satisfy demand, carrying too much inventory ties up funds that could be invested elsewhere and may indicate overstocking or deficiencies in the product line or marketing efforts. In general, higher stockturn rates indicate higher levels of management efficiency and profitability.
A large sporting goods retailer is concerned about low inventory turnover at three of its stores in Year At the beginning of Year executives met with the management teams for all three stores to discuss strategies for increasing inventory turnover and promised a cash bonus for every member of the team if their store could double its stockturn rate by the end of Year To discourage unethical behavior like selling off inventory bellow cost to quickly reduce average inventory levels the bonus was contingent on the store meeting or exceeding its Year profitability goals.
The table provides the cost of goods sold COGS and average inventory at cost for Year and Year All numbers are in millions If all three stores met or exceeded the profitability goals for Year which managers earned the bonus?
Calculate the stockturn rates for Year and Year and the stockturn goal for each store and fill in the following table.
Round to one decimal place.
tabletableYear StockturnRatetableYear StockturnRatetableYear StockturnGoalStore AStore BStore C
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