Cutting-edge industry trends and practical tips to make fulfillment excellence a competitive advantage.
Also known as inventory outstanding, days in inventory refer to the number of days it takes for stock to turn into sales. While the formula for days in inventory may vary from sector to sector, the general rule of thumb is the lower the inventory outstanding, the more optimal inventory management is. The days in inventory formula can also be called inventory […]
Forecasting: What is Forecasting and Why is it Important for Businesses Today’s business world requires an agile strategy interpretation and an effective operational management system in order to evolve beside the rapidly changing business climate. At this stage, forecasting comes into play and enables companies to plan ahead for unexpected events. Here you can find […]
A perpetual inventory system is an inventory management accounting method designed to update all the relevant information regarding the company’s accounting process. Perpetual inventory records real-time transactions that have been received or transactions related to sold stock. While this method is usually considered more efficient and handy than a periodic inventory system, it also involves updating and tracking inventory […]
Ending Inventory Key Takeaways If you’re an interested businessman and sell goods, you’ve most probably heard about “ending inventory” This term explains the total value of products a company still has for sale at the end of an accounting period. It is a piece of vital information for businesses not only for the chance of […]
One of the most important calculations to factor in when running a business is the concept of margin. A margin calculator is bound to be your best friend when calculating an item’s revenue. Defining the gross margin of an item is relatively easy to understand and has a straightforward method that directly influences the core elements of […]
Economic Order Quantity: Definition, Calculation and Benefits Also known as optimum lot size, economic order quantity is a formula designed to find the optimal order quantity for businesses. In this way, companies can minimize their logistics, warehousing, and stock costs to a reasonable level. Business owners or partners are aware of the strong impact of the correct […]
