Posted on March 19, 2010.
Math formulas commonly used in the retail supply chain As the title suggests, these are the basic formulas used in the retail supply chain to manage inventory, sales measurement, etc.
Average Inventory
Average Inventory (months) = (start + end inventory Month Month Inventory) a· 2
Formula retail base
Cost of goods + Markup = Retail Price
Cost Price Markup - goods =
Cost Price Markup - = goods
Even retail-analysis
Breakeven ($) = Fixed Costs a· Gross margin percentage
Contribution Margin
Total Margin = Sales - Variable Costs
Cost of goods sold
COGS = Beginning Inventory + Purchases - Ending Inventory
Gross
Gross Profit = Total Sales - Cost of Goods
Gross Margin Return on Investment
GMROI = Gross Margin Cost $ a· Average Inventory
Initial Markup Markup% = (+ expenses + reductions Profit) a· (Net sales + Reductions) Inventory Turnover (Rotation of stocks or stocks turn)
Turnover Turnover = a· Average Shares retail
Maintained Markup
MM $ = (Reductions original retail -) - Cost of goods sold
MM =% Markup held a· $ Net sales
Margin%
% Margin = (Price - Cost) a· Price
Markup
$ Markup = Retail price - Cost
Markup Markup% = Amount a· Price
Net sales
Net Sales = Gross Sales - Returns and allowances
Open to Buy
OTB (retail) = Planned Sales + Planned Markdowns + Planned end of inventory - Beginning of Month Inventory Planned
Discounts
Reductions = markdowns employee discount + discounts to customers stockouts + +
Sales per square foot
Sales per square foot = Net sales a· total square feet of selling space
Stock Sales Ratio
Stock-to-Sales = Beginning of Month Stock a· sales for the month
You can find more information like this to www.retailedi.com